Continental curtails 70% of operated oil production in May

Continental Resources Inc. reported a net loss of $185.7 million for first-quarter 2020. Typically excluded items in aggregate represented $158.1 million of Continental's reported net loss. Adjusted net loss for first quarter was $27.6 million. Net cash provided by operating activities for the quarter was $663.8 million.

First quarter total production increased 9% over first quarter 2019, averaging 360,841 boe/d. First quarter oil production increased 3% over first quarter 2019, averaging 200,671 bo/d. First quarter natural gas production increased 16% over first quarter 2019, averaging 961 MMcfd.

The company has 70% of operated oil production voluntarily curtailed in May, or 60% of total operated production on a boe basis. The company is currently operating 5 rigs and expects to reduce to 4 rigs by year end 2020. This is an 80% reduction from the beginning of 2020. No stim crews are running in the Bakken. An average of 1 stim crew is expected to run in the South for the remainder of the year.

In first quarter, Bakken total production averaged 201,502 boe/d and oil production averaged 145,481 bo/d. During the quarter, the company completed 47 gross (33 net) operated wells with first production. The company is operating 2 rigs in the Bakken through yearend.

In first quarter, South total production averaged 152,010 boe/d and oil production averaged 47,838 bo/d. During the quarter, the company completed 31 gross (21 net) operated wells with first production. The company is currently operating 3 rigs in the South, targeting 2 rigs by year end 2020.

Property impairments increased to $222.5 million for the first quarter compared to $25.3 million for first quarter 2019. Impairments of proved oil and gas properties totaled $181.0 million for the first quarter, which resulted from the significant decrease in commodity prices during the quarter. Impairments were recognized on properties in the Red River Units ($166.5 million) and other various non-core properties in the North and South regions. In response to decreased crude oil prices, the company recognized a $24.5 million impairment in the first quarter to reduce the value of its crude oil inventory to estimated net realizable value at Mar. 31.

The company is withdrawing all previously issued guidance for 2020 and suspending further guidance.