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Continental Resources, Inc. (CLR)

  • Mon, Jul. 20, 2:29 PM
    • Whiting Petroleum (WLL -4.1%) is upgraded to Positive from Neutral with a $33 price target at Susquehanna, saying it now believes the valuations of many E&P stocks are finally starting to look more reasonable.
    • Drivers from WLL include the company’s reserve growth potential via its positions in the Bakken and Niobara, and improvement in capital efficiency due to its focus on enhanced completions, Susquehanna says.
    • The firm names Newfield Exploration (NFX -1.2%), Continental Resources (CLR -2.6%) and Devon Energy (DVN -2.3%) as its preferred oil names and Gulfport Energy (GPOR -3.7%) as its favorite gas play.
    • Last week's news of sales of two WLL non-core conventional properties for $185M piques the interest of Capital One Securities, which says WLL's Belfield and Robinson Lake gas plants could be next on the chopping block and could take 2015 asset sale proceeds to the top end of WLL's guided range of $500M-$1B for the year.
    | Mon, Jul. 20, 2:29 PM | 11 Comments
  • Thu, Jul. 16, 2:57 PM
    • Global oil majors have $150B of firepower than can be used for M&A and have the ability to defer another $325B in capex on marginal projects; with so much cash available for potential deals and up to 15M bbl/day of production potentially available for purchase, Goldman Sachs analyst Ruth Brooker sees a pickup in M&A activity in the oil and gas space coming soon.
    • The firm thinks shale production has the potential to double by 2025, and Brooker argues majors likely will take the current opportunity to increase their exposure to U.S. shale at historically low prices.
    • Goldman sees seven companies as most likely to draw buyout attention from the majors: EOG, PXD, CLR, COG, NBL, APC, RRC.
    | Thu, Jul. 16, 2:57 PM | 22 Comments
  • Thu, Jul. 9, 12:26 PM
    | Thu, Jul. 9, 12:26 PM | 32 Comments
  • Mon, Jul. 6, 3:15 PM
    • WTI crude oil settled at a three-month low $52.53/bbl, -7.7%, on a confluence of worries about the Greece debt drama, China’s stock markets and a new flood of Iranian oil; Brent crude fell to $56.50, -6.3%, to snap its 100-day MA.
    • WTI has dropped 10% over three straight sessions and Brent more than 7% lower in two consecutive days, breaking out of the narrow trading band of the past three months and risking a deeper slide ahead.
    • The energy sector (XLE -1.3%) is easily the worst performing equity group today: CLR -7.4%, NOG -7.8%, OAS -8.5%, DNR -6.7%, WLL -6%.
    • Oil supermajors also are sharply lower: XOM -1%, COP -2.8%, CVX -1.1%, BP -3.3%, TOT -3%.
    | Mon, Jul. 6, 3:15 PM | 93 Comments
  • Wed, Jun. 24, 6:57 PM
    • A spike in earthquakes across Oklahoma is forcing the state's energy regulator to urgently consider tougher restrictions on drilling activity, calling it a "game changer."
    • During the June 17-24 period, Oklahoma experienced 35 earthquakes of magnitude 3.0 or greater, according to the Oklahoma Geological Survey, with some of the quakes occurring in the Oklahoma City metro area where there are no high-volume wastewater injection wells.
    • The spike in quakes comes two months after drillers were ordered by the Oklahoma Corporation Commission, which regulates the oil and gas industry, to stop disposing wastewater below the state's deepest rock formation.
    • Oklahoma's elected officials have been reluctant to shackle an industry that directly generated more than 7% of state revenues last year in the form of production taxes from companies such as Devon Energy (NYSE:DVN), SandRidge Energy (NYSE:SD), Chesapeake Energy (NYSE:CHK) and Continental Resources (NYSE:CLR).
    | Wed, Jun. 24, 6:57 PM | 52 Comments
  • Fri, Jun. 12, 6:44 PM
    • North Dakota oil production fell 1.8%, or nearly 22K bbl/day, in April to ~1.17M bbl/day after recording a surprising jump in March, as weak crude prices led producers to ease production.
    • The number of drilling rigs operating in North Dakota stands at 76, the lowest since December 2009, according to the latest monthly report from the state's Department of Mineral Resources.
    • The agency director has said he expects the state’s oil production to remain at 1.1M-1.2M bbl/day until oil prices recover.
    • April natural gas production was up slightly at 1.54B cf/day from 1.51B cf/day in March.
    • Unimpressed commentator Gregor McDonald tweets: "Sorry America, but 9,525 wells in the North Dakota Bakken producing on average 116 bbl/day is more cartoon than triumph."
    • Top Bakken producers include: CLR, EOG, XOM, HES, COP. MRO, WLL, OAS, NOG, EOX
    | Fri, Jun. 12, 6:44 PM | 23 Comments
  • Wed, Jun. 10, 12:58 PM
    • The rapid contraction in the Bakken oil price discount may indicate a faster than expected production decline in the area, dealers say.
    • The buying frenzy pushed Bakken delivered at Clearbrook, Minn., to trade just $0.35/bbl below the West Texas benchmark last week, dealers say, the narrowest discount since July 2013; four months ago, it traded at a $7.50 discount.
    • Also, midwest refiners ran the most crude ever for the month of May thanks to a light maintenance slate and robust margins, triggering a bidding war for light barrels.
    • Regardless, the disappearing discount offers a partial reprieve for large producers such as Continental Resources (NYSE:CLR) and Hess (NYSE:HES) after the past year slashed global oil prices by as much as 60%.
    • Other top Bakken producers include: EOG, WLL, XOM, OAS, NOG, EOX, MRO
    | Wed, Jun. 10, 12:58 PM | 16 Comments
  • Mon, May 18, 7:45 PM
    | Mon, May 18, 7:45 PM | 66 Comments
  • Fri, May 15, 6:20 PM
    • Continental Resources (NYSE:CLR) CEO Harold Hamm told a University of Oklahoma dean last year that he wanted certain scientists there dismissed who were studying links between oil and gas activity and the state's increase in earthquakes (I, II), according to e-mails examined by Bloomberg.
    • Hamm is a major donor to the university, which is the home of the Oklahoma Geological Survey, and he has strongly disputed allegations that he tried to pressure the survey's scientists.
    • The assertions are not new, but the newly surfaced e-mails provide more specific examples of Hamm's deep displeasure with earthquake reporting coming from the OGS.
    | Fri, May 15, 6:20 PM | 54 Comments
  • Thu, May 14, 12:28 PM
    • U.S. shale oil companies that cut production when prices plunged are prepared to return rigs to operation as prices rise, WSJ reports.
    • Last week: EOG Resources (NYSE:EOG) said it would ramp up output if U.S. prices hold at recent levels, Occidental Petroleum (NYSE:OXY) boosted planned production for the year, Pioneer Natural Resources (NYSE:PXD) said it hopes to increase drilling and add two new rigs per month from July if prices continue to rise, Whiting Petroleum (NYSE:WLL) said it would ramp up production at ~$70/bbl, and Continental Resources (NYSE:CLR) CEO Harold Hamm said that $70 oil is a price "that turns it on for us.”
    • These companies are among those seen as swing producers that can boost production when prices are high and cut back when they fall.
    • “U.S. supply could quickly rebound in response to the recent recovery in prices,” says one commodities economist. “Based on the historical relationship with prices, the fall in the number of drilling rigs already looks overdone, and activity is likely to rebound over the next few months."
    • Earlier: Oil drilling could resume sooner than advertised, Susquehanna says
    | Thu, May 14, 12:28 PM | 44 Comments
  • Thu, May 14, 10:56 AM
    • Saudi Arabia's "dire action" to flood the crude oil market and squeeze out U.S. producers will backfire, and the Saudi claim of success is premature, Continental Resources (NYSE:CLR) founder and CEO Harold Hamm says.
    • "They used predatory pricing to cut the price of oil down to nothing where they think we can't make it, but I think they've almost guaranteed us an outlet to world markets," Hamm tells CNBC.
    • The Saudi move could help rally support in D.C. for lifting the decades-old U.S. crude oil export ban, Hamm says; a bipartisan bill introduced yesterday by two senators from oil-producing states aims to make that happen.
    | Thu, May 14, 10:56 AM | 28 Comments
  • Wed, May 13, 6:19 PM
    • North Dakota recorded a surprising jump in oil and natural gas production in March, as producers successfully wring efficiencies out of existing operations in an attempt to maintain production even at depressed prices.
    • The state's oil producers pumped nearly 1.2M bbl/day in March, up ~15K from February, while natural gas output rose 14% to 47.2M cf, according to the Department of Mineral Resources.
    • The agency says 189 North Dakota wells were completed in March at locations owned by Exxon Mobil (NYSE:XOM), Hess (NYSE:HES), Continental Resources (NYSE:CLR) and ConocoPhillips (NYSE:COP), as "these four appear to be more in tune with having normal cash flow, and continue to complete their wells in a more aggressive manner."
    • But in a sign of divergent strategies in the state, EOG Resources (NYSE:EOG) and Marathon Oil (NYSE:MRO) continue to delay fracking.
    • Other top Bakken producers include WLL, OAS, NOG and EOX
    | Wed, May 13, 6:19 PM | 80 Comments
  • Wed, May 13, 5:42 PM
    • U.S. oil exploration and production companies could be back drilling again sooner than expected, Susquehanna analysts say, seeing an improving landscape for many oil projects due to higher well productivity and lower service costs.
    • Commentary from several Permian operators has indicated the possibility of boosting activity levels in H2, and the firm thinks producers likely will start adding rigs if oil prices remain over $60/bbl in H2, when there should be more clarity around the upcoming OPEC meeting and possible lifting of Iran sanctions, both of which have been cited as variables that could drive oil prices lower.
    • Susquehanna has a generally bullish view on E&P stocks at current prices, and has a Positive rating on CLR, DVN, EOG, GPOR, NFX and RRC.
    | Wed, May 13, 5:42 PM | 3 Comments
  • Mon, May 11, 4:59 PM
    • Oil production from seven major U.S. shale plays is expected to fall by 86K bbl/day in June, according to the latest report from the Energy Information Administration.
    • Oil output at the Eagle Ford shale play in South Texas is forecast to see the biggest decline, down 47K bbl/day, while production at the Bakken shale play, centered in North Dakota, is expected to drop by 31K bbl/day, the report says.
    • "The data shows that production in the Bakken and Eagle Ford [plays] peaked in March at 1.33M bbl/day and 1.73M bbl/day, respectively," says WTRG Economics energy economist James Williams.
    • Among the top Eagle Ford producers: EOG, BHP, COP, CHK, MRO, APC
    • Among the top Bakken producers: CLR, EOG, WLL, HES, XOM, OAS, NOG, EOX, MRO
    | Mon, May 11, 4:59 PM | 20 Comments
  • Wed, May 6, 5:49 PM
    • Continental Resources (NYSE:CLR+2.8% AH after posting a smaller than expected Q1 loss, as cost cuts helped offset low oil prices.
    • CLR says its drilling and completion costs for most of its operated wells have fallen a greater than expected 15% since year-end, mostly the result of lower service costs, and it now expects to realize service cost reductions of up to 20% by mid-year and further savings from drilling and completion efficiencies.
    • Says Q1 EBITDA was $439.4M vs. $775.4M in the year-ago quarter, reflecting the decline in average commodity prices
    • CLR's Q1 production totaled 18.6M boe, or 206.8K boe/day, up 7% Q/Q and 36% higher than in Q1 2014, with the biggest jump in North Dakota, where it is the second largest oil producer.
    • CLR says it believes oil prices will rise later this year but is not raising production expectations, although it expects to be cash flow neutral by the middle of the year.
    | Wed, May 6, 5:49 PM | 4 Comments
  • Wed, May 6, 4:27 PM
    • Continental Resources (NYSE:CLR): Q1 EPS of -$0.09 beats by $0.04.
    • Revenue of $582.6M (-41.7% Y/Y) misses by $33.21M.
    • Shares +1.4%.
    • Press Release
    | Wed, May 6, 4:27 PM | 2 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.