Exploration & Production | Quarterly / Earnings Reports | Second Quarter (2Q) Update
Continental Ramps Up Production by 15,500 BOE/d in 2Q
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Continental Resources, Inc. reported second quarter 2014 operating and financial results.
Highlights:
- Record EBITDAX of $868 Million; Adjusted Net Income Totaled $277 Million, or $1.50 per Diluted Share
- Production Increase of Approximately 15,500 Boe per Day to an Average of 167,953 Boe per Day, a 10% Increase Compared to First Quarter 2014; Bakken and SCOOP Production Up 11% and 17% Sequentially
- Enhanced Completions Continue to Show Increased Early Production Uplift
- Completed First 660-Foot Density Pilot at the Wahpeton Pad With Initial Rates on 12 New Wells Averaging 1,015 Boe per day
Net income for the quarter ended June 30, 2014 was $104 million, or $0.56 per diluted share. Excluding items typically excluded from published analyst estimates, adjusted net income for second quarter 2014 was $277 million, or $1.50 per diluted share, a 13% increase over adjusted net income of $246 million, or $1.33 per diluted share, for second quarter 2013.
EBITDAX for second quarter 2014 was $868 million, a 12% increase over EBITDAX of $775 million for first quarter 2014 and 23% above EBITDAX for second quarter 2013.
Harold G. Hamm, Chairman and Chief Executive Officer, commented, "Our team executed very well this quarter, evidenced by sequential quarterly production growth of 15,500 Boe per day, putting us on track to achieve our annual production growth target for 2014. Our superior asset base is gaining value each quarter from our work in density development, exploration drilling and production improvements. We are making great progress with enhanced completions and are encouraged with early results."
Updates on Continental's Bakken and SCOOP activities can be accessed below:
Continental Reports Solid SCOOP Results; Talks Density Pilot
Enhanced Completions Bolster Continental's Bakken Results
Production and Sales Volumes
Second quarter 2014 net production totaled 15.3 million barrels of oil equivalent, or 167,953 Boe per day, a sequential increase of 10% from first quarter 2014 and 24% higher than second quarter 2013. Total net production included 116,441 barrels of oil per day (69% of production) and approximately 309 million cubic feet of natural gas per day (31% of production). In second quarter 2014, sales volumes totaled approximately 15.4 million Boe, or 168,810 Boe per day, which was approximately 78,000 barrels above the amount produced for the quarter. This overlift (sales exceeding production) partially offsets prior quarter underlift due to logistical management of volumes during the winter and initial line and tank fill at new oil storage facilities. Going forward, the Company anticipates oil inventories will increase in the second half of 2014 as line fill requirements are satisfied for new pipeline infrastructure being developed in key operating areas. This could result in reduced sales volumes in the third and fourth quarters by an aggregate total of approximately 500,000 net barrels, although such impact may be partially offset by sales of previously stored production throughout the Company's facilities in the Bakken.
Mid-Year 2014 Proved Reserve Update
Continental estimates mid-year 2014 proved reserves of 1.2 billion Boe, an increase of 11% from year-end 2013, based on internal estimates. The PV-10 value of proved reserves is estimated at $23.4 billion, up 16% from $20.2 billion at year-end 2013 and up 76% from $13.3 billion at year-end 2012.