“We obviously want to operate as much as we can,” Henry said.
Henry attributed the savings in part to Continental's ability as the largest operator in the area to benefit from bulk rates for rigs, sand and other products. Continental also said it expects a cost savings from selling its less efficient and more expensive eastern properties.
The two transactions are expected to cut Continental's production expense to between $5.20 and $5.60 per barrel of oil equivalent, down from its previous guidance of $5.50 to $5.90 per equivalent barrel.
Continental also said the deal will boost its year-over-year production growth to 35 percent to 40 percent, up from 30 percent to 35 percent.
“I think this is a positive for them,” said Gail Nicholson, senior research analyst at KLR Group in Tampa, Fla. “This is a nice bolt-on acquisition for the company.”
Continental shares gained 45 cents, or 0.6 percent, to close at $75.39 Thursday.