CLR Is An Example Of Why Shale Industry Is Not Responsive To Higher Oil & Gas Prices

Dec. 05, 2021 7:28 PM ETContinental Resources, Inc. (CLR)10 Comments
Zoltan Ban profile picture
Zoltan Ban


  • The core Bakken acreage in CLR's portfolio seems to be mostly spent, leaving Continental with few options but to manage a halt in production growth, while aiming for profits.
  • For the current quarter, production is set to be just under levels seen in Q3 of 2019.
  • Continental's production performance is typical of the industry, given increasingly scarce prime acreage, a damaged reputation in terms of profitability, and other factors.
  • Continental's profit outlook looks good, on the back of disciplined operations and strong oil & gas prices, but it has a longer term problem of declining acreage quality.

Fracking Oil Well

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Investment thesis: After almost a full decade of chasing production growth at the expense of profits, the shale industry is now discovering the benefits of aiming for profits instead. Continental Resources (NYSE:CLR) is

This article was written by

Zoltan Ban profile picture
My name is Zoltan Ban,  I have a BA in economics. I am a personal investor with over a decade and a half of active trading experience.

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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