Continental Resources Inc. expects to raise spending by 47% in 2022 and oil production by about 25%, it said as part of its Feb. 15 earnings statement.
The operator is projecting a $2.3 billion capital expenditures budget, excluding Franco Nevada's share of mineral costs. About $1.8 billion is allocated to drilling and completions activities and an additional $500 million is being allocated primarily for leasehold, mineral acquisitions, workovers, and facilities.
The capital expenditures budget includes a 15% increase to legacy spending in the Bakken and Anadarko basins combined with a $500-million increase attributed to the company's recently acquired positions in the Permian and Powder River basins (OGJ Online, Nov. 4, 2021; Mar. 15, 2021).
With that, Continental expects annual crude oil production of 195,000-205,000 b/d. Annual natural gas production expected to be 1,040-1,140 MMcfd. At year-end 2022, Continental projects a working backlog of about 175 gross operated wells in progress in various stages of completion.
Full-year 2021 total production averaged 329,600 boe/d. Full-year 2021 oil production averaged 160,600 boe/d. Full-year 2021 natural gas production averaged 1,014 MMcfd. Fourth-quarter 2021 total production averaged 340,200 boe/d, up slightly from third-quarter’s 331,400 boe/d. Fourth-quarter 2021 oil production averaged 166,700 b/d. Fourth-quarter 2021 natural gas production averaged 1,041 MMcfd.
The company reported full-year 2021 net income of $1.66 billion. Adjusted net income for full-year 2021 was $1.70 billion. Net cash provided by operating activities for full-year 2021.
The company reported net income of $742.7 million for fourth-quarter 2021, up from $369.3 million in third-quarter 2021. Adjusted net income for fourth-quarter 2021 was $651 million. Net cash provided by operating activities the quarter was $1.25 billion.