Continental announces $2.6B budget for 2019

Continental Resources isn't slowing down.

On Wednesday, company officials said they plan to run an average of 25 drilling rigs during 2019 — one more than the 2018 average — and anticipate the company will generate cash flow of about $3 billion (with about $500 million of that free cash flow), based on an average price of $55 per barrel of oil and $3 per thousand cubic feet of natural gas.

“In 2019, Continental will deliver enhanced capital efficiency with greater oilweighted production growth, coupled with a lower capital spend,” CEO Harold Hamm said in a statement.

The company's release stated Continental Resources expects in 2019 to:

• Spend $2.6 billion, with about $2.2 billion of that allocated to drilling and completion activities and about $125 million allocated toward its joint venture minerals acquisition project with Franco-Nevada.

• Increase its year-overyear daily oil production to between 190,000 and 200,000 barrels and increase its year-over-year daily natural gas production to between 790 million to 810 million cubic feet.

The company also on Wednesday released production data for the fourth quarter of 2018 and for the entire year.

Continental's average daily total production for 2018 was 298,190 barrels of oil equivalent, up 23 percent compared to 2017. Average daily oil production was 168,177 barrels, up 21 percent, year over year. Daily fourth-quarter total production was up 9 percent, and oil production added 14 percent, compared to the third quarter of 2018.

The company estimates it held 1.52 billion barrels of oil equivalent in proved reserves at the end of 2018, up 14 percent compared to the same time a year earlier.

Continental Resources isn't hedging its oil, which officials said will allow it to take full advantage of climbing prices, if they occur. If prices were to fall, however, officials said the company could sustain its planned 2019 budget as long as they don't decline below the mid-$40s range.