Continental Resources Inc. Earnings: Double-Digit Revenue Growth Continues

Continental Resources Inc. (NYSE:CLR) reported its results for the fourth quarter. Continental Resources is an independent crude oil and natural gas exploration and production company with operations in the North, South, and East regions of the United States.

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Continental Resources Earnings Cheat Sheet for the Fourth Quarter

Results: Loss widened to $112.1 million (62 cents per diluted share) from $45 million (loss of 27 cents per share) in the same quarter a year earlier.

Revenue: Rose 24.9% to $114.1 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Continental Resources Inc. fell short of the mean analyst estimate of 77 cents per share. It fell short of the average revenue estimate of $475.1 million.

Quoting Management: “As we reported on January 25, 2012, production growth was very strong in late 2011 and in early 2012,” said Harold Hamm, Chairman and Chief Executive Officer. With this momentum, we now expect to grow production in a range of 37 percent to 40 percent for the year,” Mr. Hamm said. This compares to Continental’s original 2012 production growth guidance of 26 percent to 28 percent. Since we set our 2012 budget in early November, cash flow has benefited from strong oil prices and generally moderate transportation costs. We are also experiencing operating efficiency and productivity gains. Specifically, wells recently completed in extension areas in the Bakken and the Anadarko Woodford, where we previously had little drilling experience, were stronger than expected. We had applied a risking factor in these extension areas, and actual results were instead equal to or better than typical Continental wells in our established areas in the Bakken and Anadarko Woodford.”

Key Stats:

The company fell short of estimates last quarter after beating the mark the quarter before with net income of 68 cents versus a mean estimate of net income of 67 cents per share.

CLR’s loss in the latest quarter comes after the two previous profitable quarters. The company reported a profit of $439.1 million in the third quarter and a profit of $239.2 million in the second quarter.

Looking Forward: Next quarter’s results are expected to be more favorable for the company. Over the past sixty days, the average estimate for the first quarter of the next fiscal year has reached 74 cents per share, up from 69 cents. For the fiscal year, the average estimate has moved up from $2.49 a share to $2.59 over the last ninety days.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com