We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Continental Resources (CLR) Earnings & Revenues Beat in Q4
Read MoreHide Full Article
Continental Resources, Inc. reported fourth-quarter 2021 adjusted earnings of $1.79 per share, beating the Zacks Consensus Estimate of $1.73. The bottom line turned around from the year-ago quarter’s loss of 23 cents per share.
Total quarterly revenues of $1,927 million surpassed the Zacks Consensus Estimate of $1,703 million. The top line also improved from the year-ago quarter’s $838 million.
The strong quarterly results can be attributed to increased natural gas production volumes and higher realizations of commodity prices.
Continental Resources, Inc. Price, Consensus and EPS Surprise
The company’s board of directors announced a quarterly dividend payment of 23 cents per share, a 15% increase from 20 cents paid out in the previous quarter. The amount will be paid out on Mar 4, 2022, to stockholders of record as of Feb 22, 2022.
The company increased its existing share repurchase program to $1.5 billion, including $441 million worth of share repurchases to date.
Oil Production
Production from continuing operations averaged 340,168 barrels of oil equivalent per day (Boe/d) for the reported quarter (49% oil) versus 339,307 Boe/d in the year-ago period. Production volumes increased, owing to higher output from Bakken and Oklahoma assets.
Oil production for the reported quarter was 166,694 barrels per day (Bbls/d), down from 176,639 Bbls/d a year ago. Natural gas production increased from 976,011 thousand cubic feet per day (Mcf/d) in fourth-quarter 2020 to 1,040,842 Mcf/d.
Crude Equivalent Price Realization
For fourth-quarter 2021, the crude oil equivalent price increased to $55.27 per barrel from $24.63 in the prior-year period. Natural gas was sold at $6.31 per Mcf, up from $1.81 in the year-ago quarter. The average realized price for oil was $73.19 a barrel, up from $37.34 in the prior-year quarter.
Total Expenses
In fourth-quarter 2021, total operating expenses of $861.9 million declined from $869.3 million in the December-end quarter of 2020. However, total production costs increased to $114.1 million from $87.4 million in the year-ago quarter. Exploration costs for the reported quarter were $11.6 million compared with $3.1 million in the year-ago period. Transportation costs increased to $68.3 million from the year-ago level of $48.6 million.
Financials
For fourth-quarter 2021, the total capital expenditure was $585.7 million. It generated a free cash flow of $728.9 million in the reported quarter.
As of Dec 31, 2021, the company had total cash and cash equivalents of $20.9 million. It had long-term debt of $6,826.6 million (excluding current maturities). It had a debt-to-capitalization of 46.5%.
Outlook
For 2022, Continental Resources expects average oil production of 195,000-205,000 Bbls/d. Natural gas production is expected to be 1,040,000-1,140,000 Mcf/d. The upstream player announces its capital spending budget at $2.3 billion for the year.
Notably, the company plans to generate $5.2 billion of cash flow from operations and $2.9 billion of free cash flow in 2022.
Zacks Rank & Stocks to Consider
The company carries a Zacks Rank #3 (Hold).
Investors interested in the energy sector might look at the following companies that turned in strong bottom-line numbers in the fourth quarter and presently sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
Calgary, Canada-based Cenovus Energy Inc. (CVE - Free Report) is a leading integrated energy company. CVE reported fourth-quarter 2021 earnings per share of 43 cents, beating the Zacks Consensus Estimate of earnings of 41 cents.
Cenovus Energy is expected to see earnings growth of 116.1% in 2022. CVE currently has a Zacks Style Score of A for Growth and Momentum, and B for Value. As of Dec 31, 2021, the Canadian energy player had cash and cash equivalents of C$2,873 million.
RPC, Inc. (RES - Free Report) is among the leading providers of advanced oilfield services and equipment to almost all prospective oil and gas plays in the United States. RPC reported adjusted earnings of 6 cents per share for the fourth quarter, beating the Zacks Consensus Estimate of 3 cents.
RPC is expected to see an earnings growth of 1066.7% in 2022. As of Dec 31, RPC had cash and cash equivalents of $82.4 million, up sequentially from $80.8 million. Nonetheless, the company managed to maintain a debt-free balance sheet.
Valero Energy Corporation (VLO - Free Report) is the largest independent refiner and marketer of petroleum products in the United States. VLO reported fourth-quarter 2021 adjusted earnings of $2.47 per share, beating the Zacks Consensus Estimate of $1.79 per share.
Valero is expected to see an earnings growth of 152.7% in 2022. VLO has witnessed three upward revisions in the past 60 days. It currently has a Zacks Style Score of A for Growth and Momentum. At the quarter-end, Valero had cash and cash equivalents of $4,122 million.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Continental Resources (CLR) Earnings & Revenues Beat in Q4
Continental Resources, Inc. reported fourth-quarter 2021 adjusted earnings of $1.79 per share, beating the Zacks Consensus Estimate of $1.73. The bottom line turned around from the year-ago quarter’s loss of 23 cents per share.
Total quarterly revenues of $1,927 million surpassed the Zacks Consensus Estimate of $1,703 million. The top line also improved from the year-ago quarter’s $838 million.
The strong quarterly results can be attributed to increased natural gas production volumes and higher realizations of commodity prices.
Continental Resources, Inc. Price, Consensus and EPS Surprise
Continental Resources, Inc. price-consensus-eps-surprise-chart | Continental Resources, Inc. Quote
Dividend Hike
The company’s board of directors announced a quarterly dividend payment of 23 cents per share, a 15% increase from 20 cents paid out in the previous quarter. The amount will be paid out on Mar 4, 2022, to stockholders of record as of Feb 22, 2022.
The company increased its existing share repurchase program to $1.5 billion, including $441 million worth of share repurchases to date.
Oil Production
Production from continuing operations averaged 340,168 barrels of oil equivalent per day (Boe/d) for the reported quarter (49% oil) versus 339,307 Boe/d in the year-ago period. Production volumes increased, owing to higher output from Bakken and Oklahoma assets.
Oil production for the reported quarter was 166,694 barrels per day (Bbls/d), down from 176,639 Bbls/d a year ago. Natural gas production increased from 976,011 thousand cubic feet per day (Mcf/d) in fourth-quarter 2020 to 1,040,842 Mcf/d.
Crude Equivalent Price Realization
For fourth-quarter 2021, the crude oil equivalent price increased to $55.27 per barrel from $24.63 in the prior-year period. Natural gas was sold at $6.31 per Mcf, up from $1.81 in the year-ago quarter. The average realized price for oil was $73.19 a barrel, up from $37.34 in the prior-year quarter.
Total Expenses
In fourth-quarter 2021, total operating expenses of $861.9 million declined from $869.3 million in the December-end quarter of 2020. However, total production costs increased to $114.1 million from $87.4 million in the year-ago quarter. Exploration costs for the reported quarter were $11.6 million compared with $3.1 million in the year-ago period. Transportation costs increased to $68.3 million from the year-ago level of $48.6 million.
Financials
For fourth-quarter 2021, the total capital expenditure was $585.7 million. It generated a free cash flow of $728.9 million in the reported quarter.
As of Dec 31, 2021, the company had total cash and cash equivalents of $20.9 million. It had long-term debt of $6,826.6 million (excluding current maturities). It had a debt-to-capitalization of 46.5%.
Outlook
For 2022, Continental Resources expects average oil production of 195,000-205,000 Bbls/d. Natural gas production is expected to be 1,040,000-1,140,000 Mcf/d. The upstream player announces its capital spending budget at $2.3 billion for the year.
Notably, the company plans to generate $5.2 billion of cash flow from operations and $2.9 billion of free cash flow in 2022.
Zacks Rank & Stocks to Consider
The company carries a Zacks Rank #3 (Hold).
Investors interested in the energy sector might look at the following companies that turned in strong bottom-line numbers in the fourth quarter and presently sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
Calgary, Canada-based Cenovus Energy Inc. (CVE - Free Report) is a leading integrated energy company. CVE reported fourth-quarter 2021 earnings per share of 43 cents, beating the Zacks Consensus Estimate of earnings of 41 cents.
Cenovus Energy is expected to see earnings growth of 116.1% in 2022. CVE currently has a Zacks Style Score of A for Growth and Momentum, and B for Value. As of Dec 31, 2021, the Canadian energy player had cash and cash equivalents of C$2,873 million.
RPC, Inc. (RES - Free Report) is among the leading providers of advanced oilfield services and equipment to almost all prospective oil and gas plays in the United States. RPC reported adjusted earnings of 6 cents per share for the fourth quarter, beating the Zacks Consensus Estimate of 3 cents.
RPC is expected to see an earnings growth of 1066.7% in 2022. As of Dec 31, RPC had cash and cash equivalents of $82.4 million, up sequentially from $80.8 million. Nonetheless, the company managed to maintain a debt-free balance sheet.
Valero Energy Corporation (VLO - Free Report) is the largest independent refiner and marketer of petroleum products in the United States. VLO reported fourth-quarter 2021 adjusted earnings of $2.47 per share, beating the Zacks Consensus Estimate of $1.79 per share.
Valero is expected to see an earnings growth of 152.7% in 2022. VLO has witnessed three upward revisions in the past 60 days. It currently has a Zacks Style Score of A for Growth and Momentum. At the quarter-end, Valero had cash and cash equivalents of $4,122 million.