Major Bakken player Continental Resources
Numbers don’t lie
Total production for the second quarter rose a healthy 29% to 54,000 barrels of oil equivalent per day. Bakken production itself grew a fantastic 51% in the corresponding period, accounting for half of the total production. Down south, production from the Woodford shale also increased by an impressive 51%. The fundamentals have shown the kind of growth that Foolish investors should be looking for.
Not surprisingly, earnings have seen a huge boost. Earnings strictly from operations increased 31%, which shows that a boost in operations has translated into increased cash flow.
Solid growth plans
Continental’s strategy to balance both oil and natural gas production must be commended. The Bakken’s oil-rich reserves are complemented by the liquids-rich natural gas play in Anadarko.
Long-term growth plans look pretty impressive. Management’s aim to triple production and reserves in five years should definitely catch the attention of Fools. And given the company’s progress in developing its wells, I think the target looks achievable.
Competition, after all, is only bound to heat up in this region. EOG Resources
Continental’s proven reserves have already gone up 15% in the first six months of the year to 421 million barrels of oil equivalent. Stark County looks strong in making a substantial contribution. Early production in the Debrecen 1-3H stands at 1,667 barrels of oil equivalent per day -- Continental’s strongest well to date in the Normandy prospect.
Foolish bottom line
All in all, I believe this is a stock that has fantastic growth prospects. With a $2 billion capital expenditure program for 2011, the company looks on course to expand operations. Among the larger players in Bakken, Continental looks the most promising.
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