PXD - Continental kicks off heart of E&P earnings season sets (very) disciplined tone

Continental (NYSE:CLR) reported earnings after the close and provided 2022 guidance. The capital discipline message was clear, production growth is taking a back seat.  In tracking the shale discipline narrative, it appeared the bullish commentary Pioneer (NYSE:PXD) shared in Q4 of 2021 had drifted. Pioneer, a high-quality low-cost operator, planned to grow production 5% regardless of oil price. Assuming peers followed suit, 5% growth across major shale-producing basins would result in an additional ~400kb/d of supply in 2022. By mid February, Citi strategist Morris and IEA head Birol were calling for ~15% shale supply growth, or 1.0-1.2mb/d from the major US shale basins. Continental produced 377kboe/d in Q4 2021, when adjusting for acquisitions. Continental is guiding the market to 388kboe/d of production in 2022, 3% growth. Thereafter, Continental is planning to grow oil production at low-single-digit rates through 2025, assuming $80 WTI (NYSEARCA:USO).  With OPEC unable or unwilling to increase

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Continental kicks off heart of E&P earnings season, sets (very) disciplined tone