On Monday, US biggest producer in Bakken basin Continental Resources Inc. said that in the second quarter of 2020 it posted a bigger loss than expected due to the coronavirus impact.
For the April-June period, the net loss attributable to the company was 66 cents/share or USD239.3 million, comparable with a profit of 63 cents/share or USD236.6 million in the same period a year ago.
Continental’s loss excluding items was 71 cents/share when analysts just predicted a loss of 59 cents/share. According to Refinitiv IBES data, revenue was USD175.7 million, in contrast with a prediction of USD250.27 million.
In the second quarter, the company slashed up to 55% of its planned oil output and the average daily production plunged by 38.8% to 202,815 boe with prices tumbled by 78.1% to USD7.88/boe.
It estimated the production deferral in the second quarter could generate an additional USD90 million in cash flow if the US oil prices were around USD40/barrel.
Looking ahead, Continental cut the expectation on the full-year oil output by 20% from the previous prediction to 155,000-165,000 bpd. The company also slashed its capital expenditure (CAPEX) guidance for 2020 to USD1.2 billion or lower.
