Leading Bakken oil producer,
Continental Resources Inc.
) provided a bullish production outlook for 2014. The company
expects to increase total crude oil and natural gas production in
the range of 26% to 32% in 2014. Continental expects average
daily production of 170,000 to 180,000 barrels of oil equivalent
(Boe) per day, with an exit rate of approximately 200,000 Boe per
day for Dec 2014. Of the total production, 70% is expected to be
CONTL RESOURCES (CLR): Free Stock Analysis
CARRIZO OIL&GAS (CRZO): Free Stock Analysis
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WHITING PETROLM (WLL): Free Stock Analysis
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Continental's organic capital expenditure for 2014 is estimated
at approximately $4.05 billion. The budget takes into account the
ongoing trend of reduction in well costs. The company has set a
new goal to reduce average operated Bakken completed well costs
by 3% to 5% by the end of 2014.
Continental's 2014 budget reflects 400 net well completions
(1,090 gross), with 94% located in the company's two key
operating areas, the Bakken in North Dakota and Montana and the
South Central Oklahoma Oil Province (SCOOP). The 2014 well count
represents a 22% increase over current budgeted completions of
329 net wells in total for 2013.
Exploration drilling accounts for approximately $500 million of
2014 capital expenditures, a 16% increase over 2013's exploratory
drilling budget. Exploration activity will focus primarily on
continued density drilling tests in the Bakken, further testing
of the lower Three Forks formation in the Bakken, and further
appraisal and a density spacing test in SCOOP.
Oklahoma City-based Continental is an independent exploration and
production (E&P) company focused on the Bakken, Cana and
Niobrara shale plays. It has leases on nearly 1.1 million acres
in the Bakken Shale region.
The company operates in the North, South and Eastern regions of
the U.S. Its North region is north of Kansas and west of the
Mississippi river and comprises North Dakota Bakken, Montana
Bakken, the Red River units and the Niobrara play in Colorado and
Wyoming. The first two hold the maximum promise for Continental.
The Southern region includes Kansas and all properties south of
Kansas and west of the Mississippi river, comprising the Anadarko
Woodford and Arkoma Woodford plays in Oklahoma. The Anadarko and
Arkoma Woodford plays are the second most important for the
In Dec 2012, the company sold the crude oil and natural gas
properties in the East region. As of now, the remaining East
region properties comprise undeveloped leasehold acreages east of
the Mississippi River that are managed as part of the company's
Continental retains a Zacks Rank #3 (short-term Hold rating).
However, there are Zacks Ranked #1 (Strong Buy) stocks in the oil
and gas industry such as
Range Resources Corporation
Carrizo Oil & Gas Inc.
Whiting Petroleum Corp.
) that appear attractive in the short term.