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Continental Cuts April / May Production Estimates by 30%; Suspends Dividend

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   |    Tuesday,April 07,2020

Continental Resources Inc. has announced the following update, which was made as a result of the market uncertainty:

Production Decrease

The company is lowering its production expectations for April and May 2020 by 30% to reflect the impact to overall demand. A solid production number reflecting the adjustment was not immediately available.

This decision comes after a meeting took place at the White House between US President Donald Trump and top energy CEOs, including Continental Executive Chairman Harold Hamm.

CEO Bill Berry said: "Continental will continue to take decisive action to maximize cash flow generation, accomplish cost savings initiatives and prioritize the strength of our balance sheet. Global crude oil and product demand is estimated to have been impacted by 30% due to COVID-19. Accordingly, we are reducing our production for April and May 2020 in a similar range."

Similarly, Pioneer Natural Resources and Parsley Energy voiced the benefits of cutting production during these volatile times. According to a recent report by Bloomberg, Pioneer and Parsley are urging the Texas Railroad Commission to curb oil output by 20%.

Dividend Suspension

Furthermore, the Board of Directors has made the decision to suspend the quarterly dividend until further notice.

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