Continental Resources, Inc.
 (CLR)

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  • Wed, Feb. 3, 5:17 AM
    • Just ten days after Moody's put over half a trillion dollars in energy debt on review for downgrade, S&P decided it wanted to be the first one out of the gate.
    • Companies that saw their ratings cut by one notch: Chevron (NYSE:CVX), Apache (NYSE:APA), Continental Resources (NYSE:CLR), Devon Energy (NYSE:DVN), EOG Resources (NYSE:EOG), Hess (NYSE:HES), Hunt Oil, Marathon Oil (NYSE:MRO), Murphy Oil (NYSE:MUR) and Southwestern Energy (NYSE:SWN).
    • Oil futures settled below $30 a barrel again on Tuesday, but prices have taken a positive turn this morning after two days of steep declines.
    • Previously: Moody's places 175 oil, gas and mining companies on review for downgrade (Jan. 22 2016)
    | Wed, Feb. 3, 5:17 AM | 13 Comments
  • Tue, Jan. 26, 6:28 PM
    • Continental Resources (NYSE:CLR) -4.4% AH after announcing a $920M capex budget for 2016, a 66% reduction from the planned $2.7B for 2015.
    • CLR estimates its 2016 capex would be cash flow neutral at an average WTI price of $37/bbl for the full year; at an average price of $40/bbl, CLR says 2016 results would be cash-flow positive by more than $100M.
    • "Each $5 move in WTI prices impacts our full-year cash flow by $150M-$200M,” CLR CFO John Hart says.
    • CLR sees 2016 average production of 200K boe/day, down from an expected 221.7K boe/day in 2015; Q1 production is expected to total 210K-220K boe/day.
    • CLR says it plans to complete 71 wells this year, a sharp drop from 2015, and  expects to defer completing most Bakken wells in 2016, which will increase the drilled but uncompleted wells to 195 at year-end from 135 at year-end 2015.
    | Tue, Jan. 26, 6:28 PM | 28 Comments
  • Fri, Jan. 22, 9:21 AM
    | Fri, Jan. 22, 9:21 AM | 12 Comments
  • Tue, Jan. 19, 2:56 PM
    • Oil and gas companies such as Devon Energy (DVN -6.5%), Chesapeake Energy (CHK -15.2%) and Continental Resources (CLR -15.1%) will be “in a delevering phase for years," Guggenheim analysts say.
    • Guggenheim says CLR CFO John Hart recently revealed a post-recovery spending plan that still appears within cash flows, confirming its bias that the E&P sector will be in a delevering phase for years, so activity levels will be slow to ramp and will remain subdued.
    • For levered growth to return, the firm says the sector should first have resized land, equipment and personnel completely; while CHK believes it is sized to run 40 rigs instead of the 12 now active, the firm says it is a good sign the company hopes to delever first.
    | Tue, Jan. 19, 2:56 PM | 26 Comments
  • Wed, Jan. 13, 12:48 PM
    • Barrington analyst Rudolf Hokanson throws in the towel on the energy stocks he covers and discontinues coverage of the entire energy sector, a move Ben Levisohn of Barron's says is "starting to feel like capitulation."
    • The stocks Hokanson covers in the sector include Continental Resources (CLR -4.6%), Newfield Exploration (NFX -2.1%), SM Energy (SM -8.6%), Whiting Petroleum (WLL -6.7%), Enservco (ENSV flat), Ion Geophysical (IO +6.4%) and Profire Energy (PFIE +1.1%) - all viable players, but he views 2016 as a time when "recommending the stocks will be highly speculative relative to performance given a lack of earnings visibility that has steadily increased over recent periods."
    • The firm now estimates an average crude oil price of $39/bbl in 2016.
    | Wed, Jan. 13, 12:48 PM | 14 Comments
  • Tue, Jan. 12, 10:59 AM
    • Saudi Arabia's attempt to flood the crude market at a time of oversupply and concerns about weakening demand is failing, Continental Resources (CLR -0.8%) founder and CEO Harold Hamm tells CNBC.
    • "The Saudis turned 1.8M barrels on, and basically their intent was to drown us. But they've not got that done. It's been a monumental mistake for them, I might add, a trillion-dollar mistake," Hamm says, citing speculation that Saudi Aramco may sell at least part of its operations in an IPO as evidence.
    • Hamm expects oil prices to nearly double to $50-$60 during the year as output, at least in the U.S., abates: "The tipping point is getting back to equilibrium with supply and demand. We see that happening in the back part of the year."
    • Oppenheimer analyst Fadel Gheit told CNBC yesterday that half of U.S. shale producers could go bankrupt before crude eventually turns, but Hamm says this narrative is vastly overstated: "It's a different situation than it was in the 1980s. Most of the companies out there [now] have long term money that's not coming due tomorrow. They're able to ride this out."
    • ETFs: USO, OIL, UCO, UWTI, SCO, BNO, DBO, DWTI, DTO, USL, DNO, OLO, SZO, OLEM
    | Tue, Jan. 12, 10:59 AM | 56 Comments
  • Dec. 28, 2015, 11:45 AM
    • WTI crude is down 3.2% to $36.90/barrel, and Brent crude down 2.5% to $36.95/barrel, leaving prices close to 11-year lows. Energy industry firms are among the biggest decliners on a day the S&P is down 0.6%.
    • Fears about excess supply appear to be weighing once more. OPEC figures point to a global oil supply glut of more than 2M barrels (over 2% of global demand); a smaller glut is expected next year. Meanwhile, Japanese government data indicates the country's oil product sales fell to a 46-year low in November, and European data suggests the continent's oil product demand growth turned negative in October.
    • The biggest casualties include Whiting Petroleum (WLL -9.9%), Oasis Petroleum (OAS -8.2%), Vanguard Natural Resources (VNR -12.5%), Denbury Resources (DNR -8%), SandRidge Energy (SD -8.1%), SandRidge Permian Trust (PER -10.9%), SandRidge Mississippian Trust (SDT -7.5%), U.S. Silica (SLCA -6.2%), Marathon Oil (MRO -6.7%), C&J Energy Services (CJES -8.1%), MV Oil Trust (MVO -9.2%), Bonanza Creek (BCEI -6.4%), Parker Drilling (PKD -7.9%), and Continental Resources (CLR -5.9%).
    • Other notable decliners include Kinder Morgan (KMI -5%), Williams Partners (WPZ -4.4%), EOG Resources (EOG -3.4%), Cheniere Energy (CQP -3.6%), SeaDrill (SDRL -3.5%), Encana (ECA -2.8%), Devon Energy (DVN -2.7%), Ensco (ESV -3.8%), Hercules Offshore (HERO -4.7%), Atwood Oceanics (ATW -4.9%), Helmerich & Payne (HP -3.8%), and Pioneer Natural (PXD -2.6%).
    • ETFs: XLE, VDE, ERX, OIH, XOP, ERY, DIG, DUG, BGR, IYE, IEO, FENY, PXE, FIF, PXJ, NDP, RYE, FXN, DDG, DRIP, GUSH
    | Dec. 28, 2015, 11:45 AM | 109 Comments
  • Dec. 22, 2015, 2:38 PM
    • "Quality" oil stocks will perform well during H1 2016 but it will be time to buy “beta” names in H2 as global oil market conditions fundamentally improve over the course of the year, RBC analysts say, adding that a sustainable oil price recovery appears more on the cards in 2017.
    • RBC thinks stocks with lower leverage, good asset quality and cheap valuation are likely to perform best and earlier, citing 12 names: Apache (APA +1.1%), Devon Energy (DVN +3.4%), Continental Resources (CLR +8.3%), ConocoPhillips (COP +2.9%), Carrizo Oil & Gas (CRZO +1.9%), EP Energy (EPE +14.6%), Gulfport Energy (GPOR -0.9%), Newfield Exploration (NFX +0.5%), Oasis Petroleum (OAS +6.3%), Rice Energy (RICE -0.6%), SM Energy (SM -0.1%) and Whiting Petroleum (WLL +6.9%).
    | Dec. 22, 2015, 2:38 PM | 34 Comments
  • Dec. 21, 2015, 7:15 PM
    • Continental Resources (NYSE:CLR) Chairman and CEO Harold Hamm tells CNBC that the crude oil market will recover in 2016 as supply and demand come into balance.
    • "We've seen tremendous growth in the market for our supply. It's up about 3% on an annual basis, so it's quickly correcting," Hamm says, adding that the U.S. industry does not necessarily need oil prices to return to $100/bbl because of efficiency gains in the U.S. oil patch.
    • Allowing producers to export U.S. crude will help the product find a market in countries with refineries capable of processing it, Hamm says, noting that foreign acquisition of U.S. refineries has reduced capacity for American oil.
    • Lukoil (OTC:LUKOF, OTCPK:LUKOY) CEO Vagit Alekperov agrees, saying "the current purchases taking place in the industry do not incentivize the development of new exploration projects... as a result, [the oil] price will be climbing back, but that will happen during the mid-term" of 2016.
    • ETFs: USO, OIL, UCO, UWTI, SCO, BNO, DBO, DWTI, DTO, USL, DNO, OLO, SZO, OLEM
    | Dec. 21, 2015, 7:15 PM | 52 Comments
  • Dec. 16, 2015, 2:31 PM
    • Moody's says it is reviewing 29 E&P companies from the U.S. and seven from Canada for a potential downgrade, saying the companies "will be stressed for a longer period with much lower cash flows, difficulty selling assets and limited capital markets access."
    • Based on the severity and potential duration of the industry challenges, Moody's expects many companies will be downgraded one notch and others could be lowered by more than one notch.
    • Yesterday, the ratings agency cut its oil and gas price assumptions in light of continuing oversupply in the global oil markets and the U.S. natural gas market.
    • Among the U.S. companies: APC, AR, APA, XEC, CXO, COP, CLR, DNR, EGN, EOG, EPE, EQT, HES, MRO, MUR, NFG, NFX, NBL, OXY, PXD, QEP, RRC, SM, SWN, UNT, WLL, WPX
    • From Canada: BTE, CNQ, OTCQX:COSWF, CVE, ECA, OTCPK:HUSKF, SU
    | Dec. 16, 2015, 2:31 PM | 36 Comments
  • Dec. 7, 2015, 5:28 PM
    • Devon Energy's (NYSE:DVN) deal buy $1.9B worth of assets in the hot STACK shale play in Oklahoma may have the profit potential of the massive Bakken formation, but some analysts are questioning the high price.
    • Continental Resources (NYSE:CLR) CEO Harold Hamm has sounded bullish on his own company's well in the STACK and believes it could be as profitable as the Bakken someday, but some analysts do not like the timing for the deal.
    • S&P and Moody’s placed DVN debt under review for a downgrade; DVN will be increasing indebtedness to finance the deal at a time when it is already squeezed by low energy prices, S&P said, and Moody's said that "compared to the price of the acquisition, the acquired production and proved reserves is very small, and both properties are still in early development stages."
    • "Levering up in this environment [is not] well-received," Wells Fargo's David Tameron says; DVN's purchases are a major cash commitment as the low price environment makes it harder for companies to raise capital, banks have grown warier about extending credit lines to the U.S. oil patch, and markets are more skeptical toward issuance of additional stocks and bonds.
    | Dec. 7, 2015, 5:28 PM | 9 Comments
  • Dec. 7, 2015, 10:35 AM
    • The energy sector (-4.5%) paces the opening decline, as WTI crude oil prices -4% at $38.35/bbl following a 2.7% slide on Friday after OPEC's failure to agree on a production target to reduce the oil glut.
    • Investors are betting on oil prices staying lower for even longer after OPEC's non-decision, pushing U.S. crude futures for delivery nearly 10 years away below $60/bbl, Reuters reports.
    • But the oil glut is set to continue as much because of the U.S. as of OPEC, as U.S. shale drillers have only trimmed their pumping a little, and rising oil flows from the Gulf of Mexico are propping up U.S. production; the overall output of U.S. crude fell just 0.2% in September, the most recent monthly federal data available, and is down less than 3%, to 9.3M bbl/day, from the peak in April.
    • Goldman Sachs says it expects oil prices to remain "lower for longer," with a risk that prices could fall as low as $20/bbl.
    • In early trading: XOM -2.9%, CVX -4.1%, BP -3.2%, RDS.A -4.2%, COP -4.6%, MPC -3.2%, MRO -7.4%, PSX -2.8%, HES -4.9%, APC -6.1%, OXY -3.1%, EOG -5.8%, DVN -9.3%, PXD -7.2%, APA -3.9%, CHK -8%, CLR -9.1%.
    • ETFs: USO, OIL, XLE, UCO, UWTI, VDE, ERX, OIH, SCO, XOP, BNO, DBO, DWTI, ERY, FCG, DIG, GASL, DTO, DUG, BGR, USL, XES, IYE, IEO, IEZ, DNO, FENY, PXE, PXI, PXJ, FIF, OLO, SZO, NDP, RYE, FXN, OLEM, DDG
    | Dec. 7, 2015, 10:35 AM | 118 Comments
  • Dec. 4, 2015, 3:25 PM
    • U.S. crude oil settled 2.7% lower at $39.97 and Brent fell 1.9% to $43 after OPEC decided to roll over its policy of maintaining crude production in order to retain market share - a not unexpected outcome but one that offers no relief in sight for the oil industry's pain.
    • "OPEC not cutting is going to put more pressure on oil prices," and the pressure on companies’ spending will feed through into their investment in increasing their production, says Jefferies equity analyst Jason Gammel. “It’s not as though they’ll shut down existing production, but over time their output will decrease."
    • Don’t expect prices to stabilize until low prices force curtailments of pumping in the U.S., which will not happen until the end of next year, Goldman Sachs analyst Damien Courvalin.
    • Energy stocks (-0.7%) are the only S&P industry sector to decline, as the rest of the market has rebounded from yesterday's drop; some of the big oils - XOM +0.3%, CVX +0.6% - have inched higher, and refiners are mostly higher, but it's another down day for most: DVN -1.2%, CLR -5.9%, MRO -2.3%, HES -1%, COP -0.8%, EOG -0.7%, APC -2.4%, ETE -9.3%, ETP -3.5%, EPD -2.4%, WMB -6.9%.
    • ETFs: USO, OIL, XLE, UCO, UWTI, VDE, ERX, OIH, SCO, XOP, BNO, DBO, DWTI, ERY, FCG, DIG, GASL, DTO, DUG, BGR, USL, XES, IYE, IEO, IEZ, DNO, FENY, PXE, PXI, PXJ, FIF, OLO, SZO, NDP, RYE, FXN, OLEM, DDG
    | Dec. 4, 2015, 3:25 PM | 150 Comments
  • Dec. 4, 2015, 11:35 AM
    • Continental Resources' (CLR -5.6%) move in October 2014 to liquidate its insurance against an oil market crash just before prices collapsed wound up costing the company $1B this year, Bloomberg calculates.
    • Believing the downturn would not last, CLR’s Harold Hamm liquidated all the company’s oil hedges, including contracts locking in prices for 2014 and 2016 production, reaping a one-time gain of $433M; if Hamm had been right and oil prices rebounded, CLR would have enjoyed the cash windfall from selling the hedges plus higher prices for its crude, but prices plunged instead.
    • "He made the move thinking things are going to improve and they didn’t," Wunderlich's Jason Wangler says. "It was a calculated gamble and it didn’t pay off."
    | Dec. 4, 2015, 11:35 AM | 1 Comment
  • Dec. 3, 2015, 7:51 AM
    • Devon Energy (NYSE:DVN) is in talks to buy Felix Energy for ~$2B, including debt, Reuters reports.
    • DVN owns oil acreage and an interest in oil and gas pipelines located close to Felix's assets in northern Oklahoma.
    • A deal would represent a bet by DVN that crude oil prices will recover from their current $40/bbl lows to ~$65 sooner rather than later, according to the report.
    • Besides DVN, other major players with investments in the are where Felix operates include Marathon Oil (NYSE:MRO), Newfield Exploration (NYSE:NFX), Continental Resources (NYSE:CLR) and Cimarex Energy (NYSE:XEC).
    | Dec. 3, 2015, 7:51 AM | 2 Comments
  • Dec. 2, 2015, 3:21 PM
    | Dec. 2, 2015, 3:21 PM | 84 Comments
Company Description
Continental Resources Inc is an independent crude oil and natural gas exploration and production company with properties in the North, South and East regions of the United States.