Continental Resources reported net income of $72.5 million, or 43 cents per diluted share, for the first quarter.
That compares to a net loss of $26.6 million, or 16 cents per diluted share, for the first quarter last year.
Earnings before interest, taxes, depreciation, depletion, amortization and exploration expenses (EBITDAX) were $178 million for the first quarter of 2010, more than three times higher than EBITDAX of $57.7 million for the first quarter of 2009.
The company reported production of 38,428 barrels of oil equivalent per day (BOEPD) for the first quarter of 2010, a 4 percent increase over production of 36,808 BOEPD for the first quarter of 2009 and 2 percent higher than production for the fourth quarter of 2009. Production accelerated during the first quarter and in March was 40,503 BOEPD.
Crude oil increased to 76 percent of first quarter production, compared with 72 percent of production in the first quarter last year.
“Continued improvements in well performance in North Dakota has increased our estimated reserves model to 518,000 BOE per well,” said Harold Hamm, chairman and chief executive officer.
“As for the first quarter’s results, we were also pleased to begin 2010 with solid growth in cash flow and total production versus the first quarter last year,” he said.
Continental began 2010 with 16 wells awaiting completion, compared with 40 wells awaiting completion on Jan. 1, 2009. The change reflected the company’s response to the sharp decline in oil prices in late 2008 and early 2009, then its re-acceleration of drilling activity in mid-2009 as oil prices recovered. Continental entered 2010 with 12 operated rigs deployed and currently has 23 operated rigs.
Increased production in the North Dakota Bakken Shale play continued to drive overall growth in the first quarter. North Dakota Bakken production was 10,023 BOEPD, more than double the company’s production in the play in the first quarter of 2009 and an increase of 28 percent over production for the fourth quarter of 2009.
In March, the company’s North Dakota Bakken production was 10,952 BOEPD.
Continental also increased its acreage position in the Bakken since the beginning of the year. The company has 773,053 net acres leased in the Bakken, with 201,477 net acres in Montana and 571,576 in North Dakota.
“We have 15 operated rigs in the Bakken and plan to increase the number to 17 in the next month,” Hamm said. “In addition to more rigs, though, this production growth reflects impressive increases in well productivity in the last year.”
Total oil and natural gas sales were $217.1 million for the first quarter of 2010, compared with $92.6 million for the first quarter of 2009.
Continental’s average realized crude oil price was $71.41 per barrel in the first quarter of 2010, while the average realized natural gas price was $5.40 per Mcf, yielding a blended realized price of $62.07 per BOE. In the first quarter of 2009, the company reported a blended price of $29.90 per BOE.
Income from operations was $124.5 million for the first quarter of 2010, compared with an operating loss $38.4 million for the first quarter of 2009. Operating income for the first quarter of 2010 included a property impairments charge of $15.2 million, compared with an impairments charge of $35.4 million for the first quarter of 2009.
As of March 31, the company’s balance sheet included $15 million in cash and $496 million in long-term debt.