Continental Resources (CLR, $52.71) Exceeds Analyst’s Expectations -- But Competitors Disappoint

Continental Resources (CLR) kick started the shale earnings week in an exciting way, by nicely beating analysts’ estimates.

Analysts expected CLR to record earnings growth of 800% to 81 cents per share with revenue growth of 66.7% to $1.21 billion. In reality, however, CLR reported an EPS of 90 cents per share with revenue growth by 76% to $1.28 billion. Total crude production for the company saw a 17% y-o-y increase to 164,605 barrels of oil per day. Production from its Bakken operations clocked a new quarterly high of 167,643 barrels of oil equivalent per day, up 23% on a y-o-y basis. The net sale price for the quarter, excluding the effects of derivative positions, grew from $43.27 a year ago to $65.78 per barrel of oil.

The number of rig counts for the shale giant also increased to eight in Q3 compared to six in Q2. The company’s CEO further added that the company anticipates a strong wave of oil-weighted production growth by the year end, as the company plans to increase its Bakken well count up to 70 and its SpringBoard well count up to 18 by the year end.

Compared to CLR’s strong performance, VNOM recorded an EPS of 5 cents on a royalty income of $74.4 million and an operating income of $78.6 million. That fell well short of analyst expectations of EPS and revenue of 39 cents per share and $80 million, respectively, despite a production growth of 46%.