Continental Resources Reports Fourth Quarter 2014 and Full-Year 2014 Results
Fourth Quarter Adjusted Net Income Totals $420.8 Million, or $1.14 per Diluted Share
Fourth Quarter EBITDAX of $1.19 Billion Brings Full-Year 2014 EBITDAX to $3.78 Billion
Continental Resources, Inc. (NYSE: CLR) (“Continental” or the “Company”) announced fourth quarter and full-year 2014 operating and financial results. Net income for the quarter ended December 31, 2014 was $114.0 million, or $0.31 per diluted share, compared with net income of $132.8 million, or $0.36 per diluted share, for the fourth quarter of 2013. Excluding items typically excluded from published analyst estimates, adjusted net income for the fourth quarter of 2014 was $420.8 million, or $1.14 per diluted share, an 84% increase over adjusted net income of $228.1 million, or $0.62 per diluted share, for the fourth quarter of 2013.
Net income for full-year 2014 was $977.3 million, or $2.64 per diluted share, compared with net income of $764.2 million, or $2.07 per diluted share, for full-year 2013. Excluding items typically excluded from published analyst estimates, adjusted net income for full-year 2014 was $1.27 billion, or $3.43 per diluted share, a 29% increase over adjusted net income of $986.1 million, or $2.67 per diluted share, for full-year 2013.
EBITDAX for the fourth quarter of 2014 was $1.19 billion, a 66% increase over EBITDAX of $712 million for the fourth quarter of 2013. Full-year 2014 EBITDAX was a record $3.78 billion, a 33% increase over EBITDAX of $2.84 billion for full-year 2013. Definitions and reconciliations of adjusted net income, adjusted earnings per share and EBITDAX to the most directly comparable U.S. generally accepted accounting principles (GAAP) financial measures can be found in the supporting tables at the conclusion of this press release.
“We concluded 2014 with a strong fourth quarter performance, capping off another year of exceptional production and proved reserves growth,” commented Harold G. Hamm, Continental’s Chairman and Chief Executive Officer. “Looking ahead, our 2015 budget targets cash flow neutrality in the second half of the year. Given the quality of our assets and our operational flexibility, we are well on our way to achieving this balance of growth and value-creation in the current environment. We believe that our momentum coming out of 2014 will allow us to grow our production 16% to 20% this year; however, we are deferring completions in the Bakken to minimize the volumes we sell into this low price environment. As oilfield service costs align with commodity prices and as the contango in the oil market is realized, we will bring additional production online.”
Fourth quarter 2014 net production totaled 17.8 million Boe, or 193,456 Boe per day, a sequential increase of 6% from third quarter 2014 and 34% higher than fourth quarter 2013. Total net production for the fourth quarter included 136,972 barrels of oil per day (71% of production) and approximately 338.9 million cubic feet of natural gas per day (29% of production). Full-year 2014 production averaged 174,189 Boe per day, an increase of 28% compared to full-year 2013. SCOOP volumes accounted for 20% of the total full-year 2014 volumes, up from 14% of the total full-year 2013 volumes.