Continental's Q2 earnings plunge despite higher revenue, oil production

|About: Continental Resources, Inc. (CLR)|By:, SA News Editor

Continental Resources (CLR -1.5%) opens lower after Q2 earnings fell nearly 68% Y/Y and failed to meet expectations, as higher operating costs masked higher revenues and oil production.

Q2 net production totaled 15.3M boe, or nearly 168K boe/day, up 10% Q/Q and up 24% Y/Y; 69% of production was oil vs. 31% natural gas.

CLR's average realized sale price in Q2, excluding the effects of derivative positions, came to $92.31/bbl of oil, or $10.69 below the Nymex daily average for the quarter and above the $87.22 earned in the year-ago period.

Says it expects oil inventories will increase in H2, which could result in reduced sales volumes in Q3 and Q4 by an aggregate total of ~500K net barrels, but the impact may be partially offset by sales of previously stored production throughout the company's facilities in the Bakken.