- Continental Resources (CLR +12.1%) surges higher after missing Q1 earnings expectations but beating on revenues, and increasing FY 2016 production guidance.
- CLR says Q1 net production averaged 230.8K boe/day, up 3% Q/Q and up 12% Y/Y, prompting it to raise full-year production guidance to 205K-215K boe/day from a prior outlook of 200K, although average output during 2015 was 221K boe/day.
- "The resilience of our production has allowed us to increase our production guidance for 2016 without increasing capex. This reflects the quality of our assets and the success of our enhanced completion technology," CEO Harold Hamm says.
- CLR says its oil sold for $25.72/bbl during Q1, down 33% Y/Y, while production costs fell by 26% to $3.76/bbl.
- CLR also brought online a net 10 wells that had been drilled and completed in 2015 but not actively produced until Q1.
- Raymond James upgrades shares to Strong Buy from Outperform, which says CLR offers attractive leverage to the turn in oil prices with its exposure to Mid-continent resource plays and its peer-leading Bakken position.