Continental Jumps Almost 10 Percent as Gushers Boost OutputBy
Crude producer lifts production estimate on record results
Advance curbs the company’s year-to-date decline in shares
Continental Resources Inc. surged the most in eight months after record-setting drilling results in Oklahoma prompted the shale explorer to lift its full-year production estimate.
Continental shares rose 5.8 percent to $34.31 at the close in New York, after earlier climbing 9.6 percent for the biggest intraday gain since November. The advance curbed Continental’s year-to-date decline at 32 percent.
The Oklahoma City-based crude producer boosted it’s 2017 output target about 4 percent to the equivalent of 230,000 to 240,000 barrels a day in a statement after the close of regular U.S. trading on Tuesday. Continental, the creation of billionaire wildcatter Harold Hamm, also said its full-year drilling budget will be as much as 10 percent lower than its prior forecast.
“At the same time that we are increasing our production we are lowering our costs,” President Jack Stark said in a Bloomberg Television interview. “It doesn’t get much better than that.”
The company disclosed that its Tres C FIU 1-35-2XH well in the Stack region in Oklahoma gushed the equivalent of 7,442 barrels during a 24-hour test, a result Continental said was a record for the field.
— With assistance by Alix Steel