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

Fundamentals

Good value with adequate 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


Market Performance


7 Day Return

-1.2%

CLR

1.7%

US Oil and Gas

1.3%

US Market


1 Year Return

-54.3%

CLR

-21.8%

US Oil and Gas

5.9%

US Market

Return vs Industry: CLR underperformed the US Oil and Gas industry which returned -21.8% over the past year.

Return vs Market: CLR underperformed the US Market which returned 5.9% over the past year.


Shareholder returns

CLRIndustryMarket
7 Day-1.2%1.7%1.3%
30 Day-12.2%-4.0%-1.9%
90 Day-24.8%-8.2%-1.8%
1 Year-54.3%-54.3%-19.0%-21.8%8.3%5.9%
3 Year-45.5%-45.5%-6.0%-14.4%45.6%36.2%
5 Year-50.1%-50.1%-22.5%-33.2%66.1%47.9%

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

Undervalued: CLR ($28.22) is trading below our estimate of fair value ($81.58)

Significantly Undervalued: CLR is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: CLR is poor value based on its PE Ratio (11.2x) compared to the Oil and Gas industry average (10x).

PE vs Market: CLR is good value based on its PE Ratio (11.2x) compared to the US market (17.5x).


Price to Earnings Growth Ratio

Low PEG Ratio: CLR is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: CLR is overvalued based on its PB Ratio (1.6x) compared to the US Oil and Gas industry average (0.9x).


Next Steps

Future Growth

How is Continental Resources forecast to perform in the next 1 to 3 years based on estimates from 21 analysts?

12.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CLR's forecast earnings growth (12.6% per year) is above the savings rate (2.7%).

Earnings vs Market: CLR's earnings (12.6% per year) are forecast to grow slower than the US market (14.4% per year).

High Growth Earnings: CLR's earnings are forecast to grow, but not significantly.

Revenue vs Market: CLR's revenue (10.1% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: CLR's revenue (10.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: CLR's Return on Equity is forecast to be low in 3 years time (10.7%).


Next Steps

Past Performance

How has Continental Resources performed over the past 5 years?

20.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: CLR's earnings have grown significantly by 20.9% 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 (-29.6%) over the past year, making it difficult to compare to the Oil and Gas industry average (22.6%).


Return on Equity

High ROE: CLR's Return on Equity (13.7%) is considered low.


Return on Assets

ROA vs Industry: CLR has a higher Return on Assets than the Oil and Gas industry average last year.


Return on Capital Employed

ROCE Improving: CLR's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Continental Resources's financial position?


Financial Position Analysis

Short Term Liabilities: CLR's short term assets ($1.4B) exceeds its short term liabilities ($1.4B)

Long Term Liabilities: CLR's short term assets (1.4B) do not cover its long term liabilities (7.6B)


Debt to Equity History and Analysis

Debt Level: CLR's debt to equity ratio (84.5%) is considered high

Reducing Debt: CLR's debt to equity ratio has reduced from 142.2% to 84.5% over the past 5 years.

Debt Coverage: CLR's debt is well covered by operating cash flow (57.6%).

Interest Coverage: CLR's interest payments on its debt are well covered by EBIT (5.4x 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?

0.71%

Current Dividend Yield


Dividend Yield vs Market

company0.7%marketbottom25%1.5%markettop25%3.8%industryaverage4.1%forecastin3Years0.5%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: CLR's dividend (0.71%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.47%).

High Dividend: CLR's dividend (0.71%) is low compared to the top 25% of dividend payers in the US market (3.77%).

Stable Dividend: CLR is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: CLR is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: CLR is not paying a notable dividend for .


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of CLR's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Continental Resources's salary, the management and board of directors tenure and is there insider trading?

4.3yrs

Average management tenure


CEO

Harold Hamm (73yo)

52.8yrs

Tenure

US$13,332,412

Compensation

Mr. Harold G. Hamm has been Chief Executive Officer and a Director of Continental Resources, Inc. since its inception in 1967 and also serves as its Chairman of the Board. Mr. Hamm served as President of C ...


CEO Compensation Analysis

Compensation vs. Market: Harold's total compensation ($USD13.33M) is about average for companies of similar size in the US market ($USD11.20M).

Compensation vs Earnings: Harold's compensation has been consistent with company performance over the past year.


Management Age and Tenure

4.3yrs

Average Tenure

62yo

Average Age

Experienced Management: CLR's management team is considered experienced (4.3 years average tenure).


Board Age and Tenure

5.4yrs

Average Tenure

68.5yo

Average Age

Experienced Board: CLR's board of directors are considered experienced (5.4 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$1,496,07810 Jun 19
Harold Hamm
EntityIndividual
Role
Chief Executive Officer
Executive Chairman & CEO
Shares38,600
Max PriceUS$38.76
BuyUS$39,88007 Jun 19
John McNabb
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,000
Max PriceUS$39.88
BuyUS$2,776,26720 May 19
Harold Hamm
EntityIndividual
Role
Chief Executive Officer
Executive Chairman & CEO
Shares65,000
Max PriceUS$42.71
BuyUS$1,195,90020 May 19
Transwestern Transports Llc
EntityCompany
Shares28,000
Max PriceUS$42.71
BuyUS$34,007,79826 Mar 19
Harold Hamm
EntityIndividual
Role
Chief Executive Officer
Executive Chairman & CEO
Shares791,828
Max PriceUS$42.98
BuyUS$39,324,90925 Feb 19
Harold Hamm
EntityIndividual
Role
Chief Executive Officer
Executive Chairman & CEO
Shares883,977
Max PriceUS$44.57

Ownership Breakdown


Management Team

  • Harold Hamm (73yo)

    Executive Chairman & CEO

    • Tenure: 52.8yrs
    • Compensation: US$13.33m
  • Jack Stark (64yo)

    President

    • Tenure: 5.1yrs
    • Compensation: US$6.04m
  • John Hart (51yo)

    Senior VP

    • Tenure: 13.9yrs
    • Compensation: US$4.57m
  • Eric Eissenstat (61yo)

    Senior VP

    • Tenure: 8.2yrs
    • Compensation: US$2.51m
  • Diane Montgomery

    Vice President of Corporate Finance & Treasury

    • Tenure: 0yrs
  • Pat Bent (63yo)

    Senior Vice President of Operations

    • Tenure: 0.3yrs
    • Compensation: US$2.66m
  • Claude Seaman

    VP & Chief Accounting Officer

    • Tenure: 0yrs
  • Rory Sabino

    Vice President of Investor Relations

    • Tenure: 1.6yrs
  • Joe Davis

    VP & Chief Information Officer

    • Tenure: 3.6yrs
  • Shelly Lambertz (52yo)

    VP of Human Resources & Director

    • Tenure: 1.4yrs
    • Compensation: US$1.07m

Board Members

  • Mark Monroe (64yo)

    Lead Director

    • Tenure: 2.4yrs
    • Compensation: US$396.18k
  • John McNabb (74yo)

    Independent Director

    • Tenure: 9.4yrs
    • Compensation: US$376.18k
  • Lon McCain (71yo)

    Independent Director

    • Tenure: 13.7yrs
    • Compensation: US$385.29k
  • Harold Hamm (73yo)

    Executive Chairman & CEO

    • Tenure: 52.8yrs
    • Compensation: US$13.33m
  • William Berry (66yo)

    Independent Director

    • Tenure: 5.4yrs
    • Compensation: US$384.59k
  • Shelly Lambertz (52yo)

    VP of Human Resources & Director

    • Tenure: 1.4yrs
    • Compensation: US$1.07m

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$10.466b
  • Shares outstanding: 370.87m
  • 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

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 a ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 23:59
End of Day Share Price2019/10/14 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.