Analyst Note| Dave Meats, CFA |
Continental delivered production of 308 mboe/d in the first quarter, which was 9% lower sequentially and 15% lower year over year. This was significantly impacted by Winter Storm Uri, which caused unsafe conditions across several U.S. oilfields and forced widespread shut-ins. Continental’s North Dakota focus probably gave a slight advantage, as the company has more experience operating in frigid conditions than its Texas-based peers. Regardless, the storm reduced Continental’s first-quarter output by 6 mboe/d (2%), but management maintained its 2021 guidance anyway for both production and capital spending.