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Continental Resources: Estimated Q4 Revenues And Cash Burn, And Analysis Of PV-10 Pricing Inputs

Continental Resources (CLR) released information on its full-year 2014 production. From that we can extrapolate what its production was in Q4 2014 and calculate its financials. My estimate is that Continental Resources generated $980 million in revenue plus $445 million in hedge value during Q4 2014, versus $1.47 billion in cash expenditures. This leaves it with a slight deficit during the quarter.

As well, Continental Resources announced updated PV-10 calculations. As defined by the SEC, these calculations incorporate the average of oil and natural gas prices from the first day of every month in 2014. As the WTI oil price would have only been below $90 for two of those twelve months, the calculations would overvalue the reserves if you're inclined to believe that oil prices will not return to previous levels for a while.

Q4 Production Levels And Effects On Cash Flow

Continental Resources estimates total 2014 production at… Read More …