Continental ups 2021 gas output range, oil unchanged

Continental Resources lifted its full-year production guidance for natural gas but left its forecast for oil output unchanged.

The leading independent in the Bakken shale cited "continued outperformance" in increasing its outlook for average gas output in 2021 to 900mn-1,000mn cf/d from an earlier range of 880mn-920mn cf/d. Continental maintained its prior guidance for oil output to average 160,000-165,000 b/d for the full year.

Oil companies are reaping the benefits of a recovery in oil prices even as they keep a tight lid on spending in favor of boosting shareholder returns. Last week, Continental increased its dividend by a third to 15¢/share and today it resumed a $1bn share repurchase program.

The Bakken and Oklahoma-focused producer posted a profit of $289.3mn in the second quarter, on revenue of $1.2bn, compared with a loss of $239.3mn and sales of $176mn in the year-earlier period.

It also logged a record $634mn of free cash flow in the latest quarter. Estimated full-year free cash flow expectations of $2.4bn are more than double Continental's original guidance.

By Stephen Cunningham