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Continental Resources, Inc. (CLR)

  • Mon, Mar. 2, 7:35 PM
    • The crude oil aboard the train that derailed and exploded two weeks ago in West Virginia contained so much combustible gas that it would have been barred from rail transport under safety regulations set to go into effect next month, WSJ reports.
    • The oil’s vapor pressure was 13.9 psi, which exceeds the limit of 13.7 psi that North Dakota is set to impose in April on oil moving by truck or rail from the Bakken Shale.
    • Plains All American Pipeline (NYSE:PAA), which shipped the oil, says it follows regulations governing the shipping and testing of crude; CSX, the railroad that carried the oil, says it had stepped up its inspections of the track along the route.
    • The new information about the West Virginia accident likely will increase regulators’ focus on the makeup of oil being shipped by train; oil from sahle formations is known to contain far more combustible gas than traditional crude oil, which has a vapor pressure of ~6 psi.
    • Top Bakken producers: CLR, EOG, WLL, HES, XOM, OAS, NOG, EOX, MRO
  • Thu, Feb. 26, 2:58 PM
    • North Dakota's oil producers have cut the number of active rigs in the state to just 121 from 190 a year ago, according to a new list published by the state’s Department of Mineral Resources.
    • The rig count is now below the threshold of “at least 130” the DMR director had identified last month as needed to sustain output at the current level of slightly more than 1.2M bbl/day.
    • Of the 121 active rigs, 115 are drilling in just four counties at the heart of the Bakken - Dunn, McKenzie, Mountrail and Williams.
    • With the number of rigs in even the core areas down by 30% in just over two months, production likely will begin to plateau or fall in the coming months, Reuters' John Kemp writes.
    • Top Bakken producers: CLR, EOG, WLL, HES, XOM, OAS, NOG, EOX, MRO
  • Tue, Feb. 24, 4:23 PM
    • Continental Resources (NYSE:CLR): Q4 EPS of $1.14 beats by $0.59.
    • Revenue of $1.3B (+60.3% Y/Y) beats by $280M.
    • Shares +1.1%.
    • Press Release
  • Mon, Feb. 23, 5:35 PM
  • Mon, Feb. 23, 1:00 PM
    • Shale oil producers are cutting output so quickly that U.S. crude production could fall sooner than expected, according to several CEOs who told Reuters they were taken aback by the scale and speed of the cutbacks and that the current oil price downturn is different from previous episodes in their careers.
    • Just a few weeks ago, the prevailing view among industry insiders and analysts was that U.S. oil production would keep rising for several months despite falling rig numbers because of rising productivity of active wells and drilling inertia.
    • Many companies have announced 25%-70% reductions in drilling and a total of at least $25B in spending cuts; Magnum Hunter (NYSE:MHR) is one that went even further, halting all drilling and telling services firms it will not resume work unless its costs fall 40%, and CEO Gary Evans predicts such cuts foreshadow falling U.S. production within the next two months.
    • After years of breakneck growth, top shale companies Apache (NYSE:APA) and EOG Resources (NYSE:EOG) have said their oil and gas output this year will be flat.
    • Continental Resources' (NYSE:CLR) President Jack Stark calls the precipitous decline in the number of active U.S. land rigs to roughly the level EIA had forecast would be reached in October as "probably faster than I've ever seen."
  • Wed, Feb. 4, 2:58 PM
    • Halliburton (NYSE:HAL), Whiting Petroleum (NYSE:WLL), Hess (NYSE:HES) and other energy companies with a presence in North Dakota have decided, at least for now, not to lay off staff in the state, hoping to be prepared for any prolonged rebound in crude prices.
    • By almost any metric - the jobless rate, payrolls, claims for unemployment benefits - there is little evidence to indicate the state at the center of the U.S. shale oil boom is about to suffer anything resembling a bust.
    • Other large North Dakota producers, including Oasis Petroleum (NYSE:OAS), Statoil (NYSE:STO) and EOG Resources (NYSE:EOG), also have said they have no plans to reduce their workforce.
    • Continental Resources (NYSE:CLR), the state's second largest oil producer, has not commented on staffing levels, but CEO Harold Hamm bragged in a press release yesterday that CLR's North Dakota acreage continues to "provide exceptional results."
  • Wed, Jan. 28, 5:56 PM
    • The market is underestimating how quickly oil companies are scaling back their activities, and as a result oil prices could rebound faster than expected, Continental Resources (NYSE:CLR) CEO Harold Hamm says.
    • Daily oil production from the biggest plays - the Bakken, Permian Basin and Eagle Ford - could even start to decrease mid-year or even earlier, according to Hamm, which would be sooner than forecast; many observers have said production probably would increase this year even if drilling activity slows.
    • "U.S. producers will demonstrate market discipline and act uniformly. We have the same market forces on us, so we do the same thing," Hamm says.
  • Thu, Jan. 22, 6:49 PM
    • Analysts generally are modestly positive on Kinder Morgan's (NYSE:KMI$3B deal for Harold Hamm's Hiland Partners pipeline network, as "the accretion should support a slight acceleration to KMI's prior dividend forecast despite what otherwise looks like an expensive transaction."
    • KMI shares ended barely above unchanged as the broader stock market roared higher, as investors may have thought that Richard Kinder was not conservative enough in assessing the deal; "It doesn’t look especially cheap on the up-front numbers," a Tudor Pickering analyst said, but "they’re trying to take advantage of what they view as a down market in the Bakken."
    • For Continental Resources (NYSE:CLR) head man Hamm, selling off his personally owned pipelines gives him lots of dry powder in case he decides to buy any troubled smaller oil companies, plus the personal cash losses from his nasty divorce are well documented.
    • But Hamm may have gained a better deal than anyone realizes: A judge in the divorce proceedings valued Hamm's 62% stake in Hiland at just $248M.
  • Wed, Jan. 21, 2:03 PM
    • “Companies will start to sell off the family silver” amid sustained low oil prices, and Halcon Resources (NYSE:HK) and Goodrich Petroleum (NYSE:GDP) are among energy companies that need to keep an eye on their liquidity the most and are thus the most likely candidates to sell assets, analysts say.
    • HK has the most debt relative to its market value among similar-sized North American peers, according to Bloomberg data, and its plan to cut 2015 drilling to just three rigs vs. earlier plans for as many as 11 opens up the possibility that it could try to sell some of the acreage where it is not currently drilling, SunTrust's Neal Dingmann says.
    • Analysts also tab Clayton Williams Energy (NYSE:CWEI), Denbury Resources (NYSE:DNR) and Penn West Petroleum (NYSE:PWE) as energy companies most likely to sell assets.
    • Also, Dingmann names top Bakken producers Continental Resources (NYSE:CLR) and Whiting Petroleum (NYSE:WLL) as potential targets of takeover interest as producers with stronger balance sheets that have become more affordable with oil’s plunge; other analysts mention Carrizo Oil & Gas (NASDAQ:CRZO) and PDC Energy (NASDAQ:PDCE) as potential candidates.
  • Thu, Jan. 15, 10:25 AM
    • North Dakota oil production rose to a new record even as energy companies drilled fewer wells and the rig count dropped to a near five-year low.
    • The state's oil output hit a record 1.19M bbl/day in November, the most recent month available, according to data released yesterday by North Dakota’s Department of Mineral Resources.
    • Despite the new record, the head of the department warned the state’s crude production will peak and decline later this year if oil prices don’t rebound; the current price of North Dakota sweet crude is ~$29.25/bbl, the lowest since Dec. 2008.
    • The latest drilling rig count is 158, the lowest in nearly five years and down from a high of 218 rigs in 2012, but the department says production may not start to drop until the rig count falls to 130 or lower.
    • Gregor McDonald argues that the North Dakota data confirming that Bakken drilling activity has slowed meaningfully has sparked the snapback rally in crude oil prices.
    • Top Bakken producers: CLR, EOG, WLL, HES, XOM, OAS, NOG, EOX, MRO
  • Wed, Jan. 14, 4:59 PM
    • Harold Hamm has pledged 68.7M Continental Resources (NYSE:CLR) shares he owns, ~27% of his total CLR holdings or ~18.5% of all the company's outstanding shares, as collateral for a personal loan, according to an SEC filing.
    • The filing does not state the purpose of the loan, but Hamm's divorce lawyers recently said he took out a loan to fund a divorce settlement with ex-wife Sue Ann Arnall; under the terms of the loan, Hamm could be required to put up more shares if the value of the company’s stock drops.
    • CLR has 372.2M shares outstanding, with 86.1M in the hands of public investors and available to trade.
  • Wed, Jan. 14, 2:35 PM
    • Barclays downgrades the large-cap E&P sector to Negative from Neutral and the small- and mid-cap E&P group to Negative from Positive, arguing that downside risk outweigh potential gains even if oil prices recover.
    • Equity investors are pricing in WTI crude assumptions of close to $75/bbl in 2016 compared to current strip prices of ~$57, Barclays says, also noting that an abundance of relatively cheap oil supply from U.S. producers could further delay a price recovery.
    • Among specific names, the firm downgrades CHK, SD, REN and HK to Underweight; DVN, CLR, KOS, MRO, RSPP and WLL are cut to equal weight.
    • At the same time, Barclays picked a few favorites, upgrading Range Resources (NYSE:RRC) to Overweight from Equal Weight, and maintained Overweight ratings on large-cap E&P companies CNQ, EOG and NBL; among small- and mid-cap E&P names, the firm favors AR, CXO and XEC.
    • ETFs: XOP, IEO, PXE
  • Mon, Jan. 12, 7:22 PM
    • The number of drilling rigs operating in North Dakota's oil fields has dropped to 159, the lowest level since November 2010.
    • The state lost eight rigs overnight, according to state data, a steep one-day drop not seen for years in the second-ranked U.S. oil producer.
    • The drop comes after Continental Resources (NYSE:CLR), Oasis Petroleum (NYSE:OAS) and other companies announced capital spending cuts for 2015, admitting they planned to use fewer rigs this year.
    • Other major North Dakota producers include EOG, WLL, HES, XOM, NOG, EOX and MRO.
  • Mon, Jan. 12, 3:57 PM
    • Sue Ann Arnall, the ex-wife of Continental Resources (CLR -4.4%) oil magnate Harold Hamm, is vowing to continue with an appeal of her divorce case even after she cashed a $975M check from Hamm.
    • "I will not dismiss my appeal and do not feel that my right to appeal should be denied because I have accepted, in the interim, a small portion of the estate that we built over more than two decades," Arnall says through her lawyers.
    • If she continues an appeal, Hamm would try to have it dismissed on grounds she has already accepted the benefits of the earlier ruling.
  • Fri, Jan. 9, 10:56 AM
    • North Dakota needs an oil price of $55/bbl and a fleet of at least 140 rigs to sustain production at the current level of 1.2M bbl/day, according to a presentation from the state's chief mineral resources regulator.
    • Breakeven rates for new wells range from $29 in Dunn county and $30 in McKenzie to $36 in Williams and $41 in Mountrail; these four counties account for 90% of drilling in the state.
    • The number of rigs operating in the state already has fallen to 165, down from 191 in October.
    • The projections confirm North Dakota's oil output will start to fall by year's end unless prices rise from current depressed levels.
    • Top Bakken producers: CLR, EOG, WLL, HES, XOM, OAS, NOG, EOX, MRO
  • Thu, Jan. 8, 6:53 PM
    • Sue Ann Arnall, the ex-wife of Continental Resources (NYSE:CLR) oil magnate Harold Hamm, decides $975M isn't so bad after all, and reportedly has cashed the hand-written check just days after rejecting the payment which had ordered by a court.
    • It's not clear whether the check's cashing will end the bitter divorce proceedings, but accepting the benefits of the settlement should at least end the appeal process.
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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.