Continental Resources Inc.’s fourth-quarter profits slipped nearly 40 percent even as production jumped 35 percent, the Oklahoma City-based oil company said Wednesday.
Continental posted a net income of nearly $133 million, or 72 cents a share, down from nearly $221 million, or $1.19 a share, in the fourth quarter of 2012. Excluding one-time items, the company’s adjusted net income was $228 million, or $1.23 a share, up 19 percent from almost $192 million, or $1.04 per share, in the year-ago quarter.
Among the excluded items is a $102 million loss on price hedges and other derivatives.
Production surged 35 percent to more than 144,000 barrels of oil equivalent per day, up from almost 107,000 barrels per day in the year-ago period. Oil represented 70 percent of Continental’s production in the most recent quarter.
Continental’s aggressive drilling program boosted the company’s proved reserves to 1.08 billion barrels of oil equivalent at the end of 2013, up 38 percent on the year.
“Our teams performed at an exceptional level in 2013, achieving our key growth targets for the initial year in our five-year plan to triple production and proved reserves,” CEO Harold Hamm said in a statement.
Production in North Dakota’s oil-rich Bakken formation jumped 38 percent year-over-year, but the harsh winter weather kept levels flat from the third quarter to the fourth quarter, Continental said Wednesday.