IPO Snapshot: Continental Resources -- Better Than ExxonMobil? (CXP)

We'll use a non-conventional measure to look at Rockies-based oil and gas production company Continental Resources: Their prospectus gives financial data for 2001 through 2005, but production data only for 2003-2005, so we're forced to limit ourselves to that latter time frame.

From 2003-2005 they had aggregate revenue of $1,112M, total operating costs (including interest payments, which are necessary for their leased operations) of $888.8M, and resulting total operating income of $223M. Over that same 3-year time frame, they produced (prospectus, p. 11) 30.477M Boe (combined barrels of oil and barrels of oil equivalents for natural gas production). That gives them about $36/Boe revenue, $29/Boe operating costs, and $7.32/Boe operating income.

For comparison during the same time frame, ExxonMobil (XOM) (.pdf file, p. 18) had $55.526B in earnings and ca. 8.4289B Boe, or about $6.59/Boe in income. To make it a perfect comparison, we should really use the net income figured for Continental Resources (as we did for ExxonMobil), which would give $224.5M net income, or $7.37/Boe.

Hmmmm. An energy extraction company that is operating better then ExxonMobil. That sounds ok to me.

[Note: this "$/bbl" measure is for the here and now. Most analysts also worry about "proved reserves" - a fuzzy but SEC mandated measure of future production potential.]