NYSE:CLR

Stock Analysis Report

Continental Resources

Executive Summary

Continental Resources, Inc. explores for, develops, and produces crude oil and natural gas properties primarily in the north, south, and east regions of the United States.


Snowflake Analysis

Undervalued with mediocre balance sheet.


Similar Companies

Share Price & News

How has Continental Resources's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CLR's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-5.6%

CLR

17.5%

US Oil and Gas

12.5%

US Market


1 Year Return

-81.7%

CLR

-57.2%

US Oil and Gas

-12.7%

US Market

Return vs Industry: CLR underperformed the US Oil and Gas industry which returned -57.2% over the past year.

Return vs Market: CLR underperformed the US Market which returned -12.7% over the past year.


Shareholder returns

CLRIndustryMarket
7 Day-5.6%17.5%12.5%
30 Day-55.0%-36.4%-14.7%
90 Day-75.2%-52.2%-21.5%
1 Year-81.7%-81.7%-55.5%-57.2%-10.9%-12.7%
3 Year-81.2%-81.3%-52.3%-56.9%12.6%5.4%
5 Year-82.5%-82.6%-55.6%-62.5%31.9%17.5%

Price Volatility Vs. Market

How volatile is Continental Resources's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Continental Resources undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CLR ($8.52) is trading below our estimate of fair value ($42.07)

Significantly Below Fair Value: CLR is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: CLR is good value based on its PE Ratio (4.1x) compared to the Oil and Gas industry average (6.7x).

PE vs Market: CLR is good value based on its PE Ratio (4.1x) compared to the US market (13x).


Price to Earnings Growth Ratio

PEG Ratio: CLR's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: CLR is good value based on its PB Ratio (0.5x) compared to the US Oil and Gas industry average (0.5x).


Next Steps

Future Growth

How is Continental Resources forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

-6.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CLR's earnings are forecast to decline over the next 3 years (-6.7% per year).

Earnings vs Market: CLR's earnings are forecast to decline over the next 3 years (-6.7% per year).

High Growth Earnings: CLR's earnings are forecast to decline over the next 3 years.

Revenue vs Market: CLR's revenue is expected to decline over the next 3 years (-7.6% per year).

High Growth Revenue: CLR's revenue is forecast to decline over the next 3 years (-7.6% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CLR's Return on Equity is forecast to be low in 3 years time (7.3%).


Next Steps

Past Performance

How has Continental Resources performed over the past 5 years?

33.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CLR has high quality earnings.

Growing Profit Margin: CLR's current net profit margins (18.4%) are lower than last year (22.6%).


Past Earnings Growth Analysis

Earnings Trend: CLR's earnings have grown significantly by 33.5% per year over the past 5 years.

Accelerating Growth: CLR's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: CLR had negative earnings growth (-21.5%) over the past year, making it difficult to compare to the Oil and Gas industry average (-11.4%).


Return on Equity

High ROE: CLR's Return on Equity (10.9%) is considered low.


Next Steps

Financial Health

How is Continental Resources's financial position?


Financial Position Analysis

Short Term Liabilities: CLR's short term assets ($1.2B) do not cover its short term liabilities ($1.3B).

Long Term Liabilities: CLR's short term assets ($1.2B) do not cover its long term liabilities ($7.3B).


Debt to Equity History and Analysis

Debt Level: CLR's debt to equity ratio (74.9%) is considered high.

Reducing Debt: CLR's debt to equity ratio has reduced from 119.6% to 74.9% over the past 5 years.

Debt Coverage: CLR's debt is well covered by operating cash flow (58.5%).

Interest Coverage: CLR's interest payments on its debt are well covered by EBIT (4.7x coverage).


Balance Sheet

Inventory Level: CLR has a high level of physical assets or inventory.

Debt Coverage by Assets: CLR's debt is not covered by short term assets (assets are 0.2x debt).


Next Steps

Dividend

What is Continental Resources's current dividend yield, its reliability and sustainability?

2.35%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CLR's dividend (2.35%) is higher than the bottom 25% of dividend payers in the US market (1.98%).

High Dividend: CLR's dividend (2.35%) is low compared to the top 25% of dividend payers in the US market (5.49%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether CLR's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if CLR's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (2.4%), CLR's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CLR's dividends in 3 years are forecast to be well covered by earnings (22.6% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.0yrs

Average management tenure


CEO

Bill Berry (66yo)

0.17

Tenure

US$384,588

Compensation

Mr. William B. Berry, also known as Bill, B.Sc., M.Sc., serves as Chief Executive Officer and Director at Continental Resources, Inc. since January 01, 2020. He serves as Executive Vice President of Explor ...


Leadership Team

NamePositionTenureCompensationOwnership
Harold Hamm
Founder & Executive Chairmanno dataUS$13.33m77.39% $2.4b
William Berry
CEO & Director0.17yrUS$384.59k0.28% $8.9m
Jack Stark
President & COO5.5yrsUS$6.04m0.22% $7.0m
John Hart
Senior VP14.33yrsUS$4.57m0.11% $3.5m
Patrick Bent
Senior Vice President of Operations0.17yrUS$2.66m0.064% $2.0m
Shelly Lambertz
Chief Culture Office1.83yrsUS$1.07m0.062% $1.9m
Claude Seaman
VP & Chief Accounting Officerno datano datano data
Diane Montgomery
Vice President of Corporate Finance & Treasuryno datano datano data
Joe Davis
VP & Chief Information Officer4yrsno datano data
Rory Sabino
Vice President of Investor Relations2yrsno datano data

3.0yrs

Average Tenure

63.5yo

Average Age

Experienced Management: CLR's management team is considered experienced (3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Harold Hamm
Founder & Executive Chairmanno dataUS$13.33m77.39% $2.4b
William Berry
CEO & Director0.17yrUS$384.59k0.28% $8.9m
Shelly Lambertz
Chief Culture Office1.83yrsUS$1.07m0.062% $1.9m
Mark Monroe
Lead Director2.83yrsUS$396.18k0.069% $2.2m
John McNabb
Independent Director9.83yrsUS$376.18k0.012% $390.1k
Ellis McCain
Independent Director14yrsUS$385.29k0.016% $502.1k
Timothy Taylor
Independent Director0.33yrno data0.0047% $147.1k

4.3yrs

Average Tenure

66yo

Average Age

Experienced Board: CLR's board of directors are considered experienced (4.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: CLR insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Continental Resources, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Continental Resources, Inc.
  • Ticker: CLR
  • Exchange: NYSE
  • Founded: 1967
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: US$3.136b
  • Shares outstanding: 368.08m
  • Website: https://www.clr.com

Number of Employees


Location

  • Continental Resources, Inc.
  • 20 North Broadway
  • Oklahoma City
  • Oklahoma
  • 73102
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CLRNYSE (New York Stock Exchange)YesVoting Common SharesUSUSDMay 2007
C5LDB (Deutsche Boerse AG)YesVoting Common SharesDEEURMay 2007
CLR *BMV (Bolsa Mexicana de Valores)YesVoting Common SharesMXMXNMay 2007
C5LCHFBRSE (Berne Stock Exchange)YesVoting Common SharesCHCHFMay 2007

Biography

Continental Resources, Inc. explores for, develops, and produces crude oil and natural gas properties primarily in the north, south, and east regions of the United States. The company sells its crude oil and natural gas production to energy marketing companies, crude oil refining companies, and natural gas gathering and processing companies. As of December 31, 2019, its proved reserves were 1,619 million barrels of crude oil equivalent (MMBoe) with estimated proved developed reserves of 707 MMBoe. Continental Resources, Inc. was founded in 1967 and is based in Oklahoma City, Oklahoma. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/30 02:10
End of Day Share Price2020/03/27 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.