Oklahoma City, OK-based Continental Resources Inc. turned in a third-quarter earnings report that beat expectations across the board but results in Oklahoma demonstrated the company’s dominance as one of the only producers to continuously outperform in a play that has sent multiple operators running.Continental Scoop Stack
Continental’s quarterly output in Oklahoma’s in the South Central Oklahoma Oil Province (SCOOP) totaled 80,115 boe/d, a 27% increase over 3Q2018 production. The company’s output in the STACK, aka the Sooner Trend of the Anadarko Basin, mostly in Canadian and Kingfisher counties) totaled 53,070 boe/d, a 5% year/year decline. Despite the slight drop in STACK production, total Oklahoma output well outpaced year-ago levels.
“Fifty percent of the oil production year-over-year has come from Oklahoma. I don’t think a lot of people would have thought that,” said CEO Harold Hamm during a conference call to discuss 3Q2019 earnings.
The counter-intuitive nature of Continental’s success in Oklahoma stems from a year-long period in which other operators have exited the Anadarko Basin or significantly reduced their investment in the region.
Continental’s dominance in Oklahoma prompted questions from analysts on the call about the company’s interest in acquisitions. (by Suzanne Edwards, Natural Gas Intel)