Continental Resources’ Q4 Results Exceed Expectations

Petroleum and natural gas exploration and production company Continental Resources, Inc. (NYSE: CLR) has reported stronger-than-expected results for the quarter ended December 31, 2021.

However, following the results, shares of the company declined over 2% to close at $56.20 in Monday’s extended trading session.

Revenue & Earnings

Revenues at the end of the quarter stood at $1.93 billion, up 130% from the same quarter last year. Further, the figure topped the consensus estimate of $1.71 billion. The major driver of this rise was a 121.3% year-over-year leap witnessed in Crude oil and natural gas sales, which made up almost 94% of the overall revenues of the company.

The company reported quarterly earnings per share (EPS) of $1.79, which compares favorably to a loss per share of $0.23 reported in the prior-year quarter. Moreover, the figure surpassed the consensus estimate of $1.70 per share.

Other Operating Metrics

CLR’s key metrics like average net sales price Per Barrel of Oil, Per Mcf of Gas and Per Boe witnessed a year-over-year rise of 14.3%, 29.3% and 19.5% to $73.19, $6.31 and $55.27, respectively.

The company generated cash flow from operations of $1.2 billion and free cash flow of $728.9 million for the quarter.

CEO Comments

The CEO of Continental Resources, Bill Berry, said, “In 2021, Continental achieved a record level of annual adjusted earnings per share alongside a nearly 15% return on capital employed and a Company record $2.6 billion of free cash flow. Given operational excellence across our premier asset portfolio, we will continue to strongly compete by expanding return of capital to shareholders while providing above average S&P 500 and industry return on capital employed through 2022 and beyond.”

Stock Rating

Consensus among analysts is a Hold based on 7 Buys, 6 Holds and 3 Sells. The average Continental Resources price target of $59.56 implies upside potential of 3.8% from current levels. Shares have gained 136.2% over the past year.

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