Shares of crude oil and natural gas firm Continental Resources (CLR) gained more than 1% in the extended trading hours on Monday after the company reported outstanding financial results for the second quarter of 2021. Based in Oklahoma City, Continental explores and produces petroleum and natural gas primarily from the STACK and SCOOP plays in Oklahoma and the Bakken formation in Montana and North Dakota.
The company reported adjusted earnings per share (EPS) of $0.91, compared to a loss of $0.71 per share in the year-ago quarter. The EPS beat the Street’s estimate of $0.44.
Total revenues skyrocketed to $1.24 billion from $176 million in the previous year and surpassed analysts’ expectations of $1.07 billion. (See Continental stock chart on TipRanks)
The CEO of Continental, Bill Berry, said, “Due to continued outperformance, the company is improving various 2021 guidance metrics and differentials. The company has increased its 2021 annual natural gas production guidance to 900 to 1,000 MMcfpd (million cubic feet per day). Production expense is projected to be improved to $3 to $3.50 per Boe (barrel of oil equivalent) in 2021. The production tax rate is projected to be improved to 7.3% to 7.6% in 2021. Continental projects 2021 guidance for DD&A of $15.00 to $17.00 per Boe, reflecting strong well productivity, capital efficiency and improved commodity prices. The company’s second-half 2021 crude oil differentials guidance per barrel of oil is projected to average ($3.50) to ($4.25) and the company’s second-half 2021 natural gas differentials guidance per Mcf is projected to average a premium of $0.25 to $0.75.”
Last week, Raymond James analyst John Freeman maintained a Buy rating on the stock with a price target of $43 (27.7% upside potential). The analyst expects the company to report EPS of $0.72 in the third quarter.
Overall, the stock has a Hold consensus based on 6 Buys, 8 Holds and 2 Sells. The average Continental Resources price target of $39.56 implies 17.5% upside potential. The company’s shares have gained nearly 91% over the past year.
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