Ahead of the Bell: Continental Resources 5-yr plan
NEW YORK -- Continental Resources will be facing questions about its spending plans when it hosts an investor conference Tuesday.
The oil and gas company unveiled a plan Monday to double its production and proved reserves of oil and natural gas liquids in the next five years on its leased properties in the U.S. The company is one of the largest leaseholders in the Bakken shale region in North Dakota and Montana.
Continental thinks it can boost production next year by 30 percent to 35 percent. The company aims to drill 300 net wells and has budgeted $3.4 billion, an amount that may concern investors.
Analyst Subash Chandra of Jefferies & Co. said that Continental's plan implies a cost of more than $11,000 per well. Chandra had forecast a cost of $10,000 per well for next year.
Shares of Continental Resources Inc. fell $1.01 to $75.50 in premarket trading. Higher than expected costs are one reason the shares have dropped about 16 percent since May 1. Chandra expects costs to be a main focus for investors at the conference.