Continental Resources Inc. (NYSE: CLR) said Thursday its quarterly profit tumbled 67 percent, driven by sharply lower crude oil and natural gas prices compared with the prior-year period, according to Associated Press.
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The independent oil and gas producer plans to raise spending on capital projects and ramp up drilling now that it expects to rebound off the difficult third quarter.
The period was defined by stabilizing oil prices between $59 per barrel and $74 per barrel, but these levels remained far below levels from a year ago when oil traded as high as $147.27 per barrel.
Natural-gas prices nearly reached $14 per 1,000 cubic feet in the third quarter of last year. In the third quarter of 2009, prices ranged between $2.50 and $5 per 1,000 cubic feet.
Quarterly earnings fell to $34.9 million, or 21 cents per share, compared with $105.3 million, or 62 cents per share during the same period last year.
Excluding special charges, the company's adjusted net income amounted to 26 cents per share.
Analysts polled by Thomson Reuters estimated a profit of 23 cents per share, on average. Analysts typically exclude one-time items.
Revenue declined 42 percent to $170.2 million, down from $293.6 million in the prior-year period. Analysts forecast an average revenue of $171.1 million.
Despite dismal third-quarter results, the company believes improving crude oil prices will help the company recover. Continental raised its 2009 capital spending budget to $415 million from $390 million as it ramps up drilling operations. The company now plans to exit 2009 with 12 operated drilling rigs, compared with the previous target of six. Production growth in 2010 is expected at around 10 percent.
Continental shares rose 10 cents to close at to $39.23 Thursday.
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