Continental Resources returns to profit in Q1
US shale company Continental Resources said April 28 that it achieved a profit during the first quarter after handing in a multi-million dollar loss in Q4.
Net income in Q1 was $260mn, compared with a net loss of $92.5mn in the previous quarter. For full-year 2020, the company reported a net loss of $596.9mn.
Continental expects cash flow from its operations to come in at $3.1bn for 2021. This will help the company accelerate its debt reduction programme, with the aim of bringing debt to below $4bn by year's end, down from the current $4.97bn.
"Continental's outstanding first quarter results and accelerated shareholder returns, which includes our reinstated dividend and exceptional progress on debt reduction, underscore Continental's commitment to delivering strong cash flow generation, consistent asset performance and operational excellence," CEO Bill Berry said.
Continental's Q1 natural gas production averaged 936mn ft3/d, down about 3% from the same period last year. Crude oil production averaged 151,852 b/d, down 24.6% from Q1 2020. Q4 production averaged 176,600 b/d for oil and 976mn ft3/d in natural gas.
The majority of the company’s production comes from the Bakken shale formation in North Dakota. The state government in an April 15 report noted that natural gas production increased some 17% from January to February, the last full month for which it reported data.
Earlier this month, however, Continental said inclement weather in February resulted in a net 60,000 boe/d decline in production, with 60% of that in oil. Sub-freezing temperatures across much of the US that month idled large parts of the nation’s energy sector.
The company has set its capital expenditure budget at $1.4bn this year. Total natural gas production for the year is expected to average between 880mn and 920mn ft3/d. Oil production is forecast to be in the range of 160,000 to 165,000 b/d.