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 (CLR) Stock Up Marginally Despite Q3 Earnings Miss
Read MoreHide Full Article
Continental Resources, Inc. shares have gained marginally despite reporting lower-than-expected third-quarter 2022 results on Nov 2. The upward price movement can be attributed to the company’s strong cash generation capabilities.
The company reported third-quarter adjusted earnings of $2.88 per share, missing the Zacks Consensus Estimate of $2.98. However, the bottom line significantly improved from the year-ago quarter’s earnings of $1.20 per share.
Total quarterly revenues of $2,447 million missed the Zacks Consensus Estimate of $2,494 million. The top line improved from the year-ago quarter’s $1,341 million.
Lower-than-expected quarterly results can be primarily attributed to the higher operating and production expenses. The negatives were partially offset by higher oil-equivalent production volumes and commodity price realizations.
Continental Resources, Inc. Price, Consensus and EPS Surprise
Production averaged 414,441 barrels of oil equivalent per day (Boe/d) in the reported quarter (48.4% oil) versus 331,407 Boe/d in the year-ago period. Production volumes increased primarily due to higher output from the Powder River and Permian Basins.
Oil production in the reported quarter was 200,464 barrels per day (Bbls/d), up from 157,153 Bbls/d a year ago. Natural gas production increased to 1,283,865 cubic feet per day (Mcf/d) from 1,045,521 Mcf/d recorded in third-quarter 2021.
Crude-Equivalent Price Realization
In third-quarter 2022, the crude oil-equivalent net sales price, excluding the effect of derivatives, increased to $69.91 per barrel from $46.07 in the prior-year period. Natural gas was sold at $8.56 per Mcf, up from $4.62 in the year-ago quarter. The average realized price for oil was $89.46 a barrel, up from $66.48 in the prior-year quarter.
Total Expenses
In the third quarter, total operating expenses of $1,037.1 million increased from $795.7 million in the September-end quarter of 2021. Total production costs increased to $166.3 million from $103.2 million. Exploration expenses in the reported quarter were $2.8 million compared with $2.5 million in the year-ago period. Also, transportation, gathering, processing and compression costs increased to $85.7 million from $54 million.
Financials
In third-quarter 2022, the total capital expenditure was $820.2 million. It generated a free cash flow of $1,005.8 million in the reported quarter.
As of Sept 30, 2022, the company had total cash and cash equivalents of $1.81 billion. It had long-term debt of $5,663.5 million (excluding current maturities).
Outlook
For 2022, Continental reiterated its average oil production guidance at 200,000-210,000 Bbls/d. Natural gas production is expected to be 1,100,000-1,200,000 Mcf/d.
Continental expects its capital spending budget for this year to be $2.6-$2.7 billion.
Zacks Rank & Stocks to Consider
Continental currently carries a Zacks Rank #3 (Hold).
DCP Midstream, LP reported third-quarter adjusted earnings of $1.50 per unit, beating the Zacks Consensus Estimate of $1.05. The outperformance resulted from increased NGL pipeline throughput.
DCP Midstream is expected to see an earnings surge of 167.3% in 2022. The company currently has a Zacks Style Score of A for Growth, and B for Value and Momentum. DCP generated an excess free cash flow of $52 million in the reported quarter.
Marathon Petroleum Corporation (MPC - Free Report) reported third-quarter 2022 adjusted earnings per share of $7.81, comfortably beating the Zacks Consensus Estimate of $6.80. The bottom line was favorably impacted by the stronger-than-expected performance of its Refining & Marketing segment.
Marathon Petroleum is expected to see an earnings surge of 944% in 2022. In October, Marathon Petroleum completed its target to buy back $15 billion in common stock. MPC has a remaining authorization of $5 billion with no expiration date.
Patterson-UTI Energy (PTEN - Free Report) reported a third-quarter 2022 adjusted net profit of 28 cents per share, beating the Zacks Consensus Estimate of a profit of 19 cents. The outperformance was driven by solid segmental performances.
Patterson-UTI is expected to see an earnings surge of 128% in 2022. The company doubled its quarterly cash dividend to 8 cents per share from the previous 4-cent payout. The dividend will be paid out on Dec 15, 2022, to shareholders of record as of Dec 1, 2022. PTEN also increased its share repurchase authorization to $300 million.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Continental (CLR) Stock Up Marginally Despite Q3 Earnings Miss
Continental Resources, Inc. shares have gained marginally despite reporting lower-than-expected third-quarter 2022 results on Nov 2. The upward price movement can be attributed to the company’s strong cash generation capabilities.
The company reported third-quarter adjusted earnings of $2.88 per share, missing the Zacks Consensus Estimate of $2.98. However, the bottom line significantly improved from the year-ago quarter’s earnings of $1.20 per share.
Total quarterly revenues of $2,447 million missed the Zacks Consensus Estimate of $2,494 million. The top line improved from the year-ago quarter’s $1,341 million.
Lower-than-expected quarterly results can be primarily attributed to the higher operating and production expenses. The negatives were partially offset by higher oil-equivalent production volumes and commodity price realizations.
Continental Resources, Inc. Price, Consensus and EPS Surprise
Continental Resources, Inc. price-consensus-eps-surprise-chart | Continental Resources, Inc. Quote
Oil Production
Production averaged 414,441 barrels of oil equivalent per day (Boe/d) in the reported quarter (48.4% oil) versus 331,407 Boe/d in the year-ago period. Production volumes increased primarily due to higher output from the Powder River and Permian Basins.
Oil production in the reported quarter was 200,464 barrels per day (Bbls/d), up from 157,153 Bbls/d a year ago. Natural gas production increased to 1,283,865 cubic feet per day (Mcf/d) from 1,045,521 Mcf/d recorded in third-quarter 2021.
Crude-Equivalent Price Realization
In third-quarter 2022, the crude oil-equivalent net sales price, excluding the effect of derivatives, increased to $69.91 per barrel from $46.07 in the prior-year period. Natural gas was sold at $8.56 per Mcf, up from $4.62 in the year-ago quarter. The average realized price for oil was $89.46 a barrel, up from $66.48 in the prior-year quarter.
Total Expenses
In the third quarter, total operating expenses of $1,037.1 million increased from $795.7 million in the September-end quarter of 2021. Total production costs increased to $166.3 million from $103.2 million. Exploration expenses in the reported quarter were $2.8 million compared with $2.5 million in the year-ago period. Also, transportation, gathering, processing and compression costs increased to $85.7 million from $54 million.
Financials
In third-quarter 2022, the total capital expenditure was $820.2 million. It generated a free cash flow of $1,005.8 million in the reported quarter.
As of Sept 30, 2022, the company had total cash and cash equivalents of $1.81 billion. It had long-term debt of $5,663.5 million (excluding current maturities).
Outlook
For 2022, Continental reiterated its average oil production guidance at 200,000-210,000 Bbls/d. Natural gas production is expected to be 1,100,000-1,200,000 Mcf/d.
Continental expects its capital spending budget for this year to be $2.6-$2.7 billion.
Zacks Rank & Stocks to Consider
Continental currently carries a Zacks Rank #3 (Hold).
Investors interested in the energy sector might look at the following companies that presently flaunt a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
DCP Midstream, LP reported third-quarter adjusted earnings of $1.50 per unit, beating the Zacks Consensus Estimate of $1.05. The outperformance resulted from increased NGL pipeline throughput.
DCP Midstream is expected to see an earnings surge of 167.3% in 2022. The company currently has a Zacks Style Score of A for Growth, and B for Value and Momentum. DCP generated an excess free cash flow of $52 million in the reported quarter.
Marathon Petroleum Corporation (MPC - Free Report) reported third-quarter 2022 adjusted earnings per share of $7.81, comfortably beating the Zacks Consensus Estimate of $6.80. The bottom line was favorably impacted by the stronger-than-expected performance of its Refining & Marketing segment.
Marathon Petroleum is expected to see an earnings surge of 944% in 2022. In October, Marathon Petroleum completed its target to buy back $15 billion in common stock. MPC has a remaining authorization of $5 billion with no expiration date.
Patterson-UTI Energy (PTEN - Free Report) reported a third-quarter 2022 adjusted net profit of 28 cents per share, beating the Zacks Consensus Estimate of a profit of 19 cents. The outperformance was driven by solid segmental performances.
Patterson-UTI is expected to see an earnings surge of 128% in 2022. The company doubled its quarterly cash dividend to 8 cents per share from the previous 4-cent payout. The dividend will be paid out on Dec 15, 2022, to shareholders of record as of Dec 1, 2022. PTEN also increased its share repurchase authorization to $300 million.