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Continental Resources' (CLR) Q2 Production Misses Estimates

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Continental Resources, Inc. recently declared initial results for second-quarter production, which totaled 25.8 million barrels of oil equivalent (BOE). Notably, the company’s daily production came in at 284,059 BOE, missing the Zacks Consensus Estimate of 290,000 BOE. Continental Resources’ second-quarter oil output was 157 thousand barrels per day (MBPD), amounting to 55.3% of the total production, which lagged the Zacks Consensus Estimate of 168 MBPD. However, crude production was up more than 25% from the year-ago period.

Total production lagged expectations (potentially 289,000 BOE per day) due to unfavorable weather in the Bakken region. Moreover, a voluntary curtailment of production from Midcontinent dampened equivalent output. Thankfully, since the end of second quarter, Midcontinent region’s production is being shipped through the Wildcat pipeline owned by Enable Midstream Partners, LP . It will increase Continental Resources’ output in the coming quarters.

Guidance

For the third quarter, the company’s production is expected to ramp up, attributing to the supplemental Bakken pads coming online. Through the first half of July, production was averaged at 296,000-298,000 Boe per day. For the rest of the quarter, production is estimated in the range of 290,000-295,000 BOE per day. Oil ratio is expected to be 57% of the total output for the rest of the quarter, which will likely rise to 58-60% in the fourth quarter.

For 2018, the company expects production to be at the high end of the 285,000-300,000 BOE per day range, aided by Springer, Woodford and Sycamore assets in the SpringBoard Project.

The company is expected to announce second-quarter financial results on Aug 7, 2018, after the market closes.

Price Performance

Oklahoma City, OK-based Continental Resources has gained 94.2% in the past year compared with 16.1% rally of its industry.

Zacks Rank and Stocks to Consider

Continental Resources currently carries a Zacks Rank #3 (Hold). Investors interested in the Energy sector can opt for some better-ranked stocks like Canadian Natural Resources Limited (CNQ - Free Report) and ConocoPhillips (COP - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Calgary, Canada-based Canadian Natural Resources is an upstream energy company. The company’s top line for 2018 is anticipated to improve 35.3% year over year, while its bottom line is expected to increase more than 168%.

Houston, TX-based ConocoPhillips is an integrated energy company. The company’s top line for 2018 is likely to improve 19% year over year. In the last four reported quarters, the company delivered an average positive earnings surprise of 226.9%.

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