By Swagato Chakravorty
Continental Resources, Inc. (NYSE: CLR) announced yesterday that profits dropped 90 percent in the third quarter due to lower revenue, though the second quarter's figures show a sizable one-time gain.
But the company also had a second piece of more positive news: Continental will purchase properties in the rich Bakken Shale region for $650 million, while also disposing of its producing crude and natural gas properties and some assets in the East Region for $125 million in cash, Nasdaq reports.
Continental produced 102,964 barrels of oil equivalent per day in the third quarter, a 55 percent increase due mostly to consistent production from the Bakken shale and the South Central Oklahoma Oil Province.
Net income decreased to $44.10 million ($0.24/share) from $439.14 million ($2.44/share) a year ago.
The company also reported $97.1 million in net non-cash unrealized loss on derivatives and $16.9 million in property damage charges. Overall, operating revenues for the quarter fell 50 percent to $483.73 million.
Oil and gas sales did rise to $633.34 million, a jump of 49 percent from 2011.
Continental said that it hopes to reach 57 to 59 percent growth in production for the fiscal year 2012. For fiscal 2013, that figure would be revised to 30-35 percent.
Although Continental is already the biggest leaseholder in the Bakken shale, its new acquisition will increase holdings from 984,040 acres to 1.1 million net acres.
The company closed on Wednesday at $73.09, down 3.79 percent. It was down again 4.43% on Thursday, closing at $69.85.