Continental increases quarterly earnings, acquires Permian acreage

Nov. 4, 2021

Continental Resources agreed to acquire certain Permian Basin assets from Pioneer Natural Resources in an all-cash transaction valued at about $3.25 billion. The deal was announced as part of both companies’ third-quarter 2021 earnings reports.

OGJ editors

Continental Resources Inc., Oklahoma City, Okla., agreed to acquire certain Permian Basin assets from Pioneer Natural Resources in an all-cash transaction valued at about $3.25 billion.

The deal, expected to close in December subject to conditions, was announced as part of both companies’ third-quarter 2021 earnings reports (OGJ Online, Nov. 4, 2021).

Continental said the assets complement its portfolio in the Bakken, Oklahoma, and—through an earlier deal with Samson Resources II LLC—the Powder River basin (OGJ Online, Mar. 15, 2021). The Permian deal includes production of 55,000 boe/d (70% oil) and 92,000 contiguous net leasehold acres with over 650 gross operated locations in Third Bone Spring/Wolfcamp A & B and over 1,000 total locations, including additional zones producing in the basin. Extensive water infrastructure is in place, the company said.

For the quarter, Continental had net income of $369.3 million compared to net income of $289.3 million in second-quarter 2021. Typically excluded items in aggregate for the third quarter represented $67.9 million of its reported net income. Adjusted net income for the quarter was $437.2 million compared to adjusted net income for second-quarter 2021 of $332.8 million. Net cash provided by operating activities for third-quarter 2021 was $1.02 billion and EBITDAX was $1.12 billion.

Third-quarter 2021 total production averaged 331,400 boe/d compared to second-quarter 2021 total production average of 338,700 boe/d. Third-quarter 2021 oil production averaged 157,200 b/d. Third-quarter 2021 natural gas production averaged 1,046 MMcfd.