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.

Rewards

PE ratio (12.4x) is below the US market (18.3x)

Earnings are forecast to grow 16.83% per year

Risk Analysis

Has a high level of debt

Highly volatile share price over past 3 months

Profit margins (18.6%) are lower than last year (38.3%)



Snowflake Analysis

Moderate growth potential with mediocre balance sheet.


Similar Companies

Pioneer Natural Resources

NYSE:PXD

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

-2.7%

CLR

-0.3%

US Oil and Gas

0.5%

US Market


1 Year Return

-40.8%

CLR

-17.7%

US Oil and Gas

20.3%

US Market

Return vs Industry: CLR underperformed the US Oil and Gas industry which returned -17.7% over the past year.

Return vs Market: CLR underperformed the US Market which returned 20.3% over the past year.


Shareholder returns

CLRIndustryMarket
7 Day-2.7%-0.3%0.5%
30 Day-16.8%-7.5%2.0%
90 Day-17.4%-6.4%9.4%
1 Year-40.6%-40.8%-14.4%-17.7%22.8%20.3%
3 Year-43.4%-43.6%-11.8%-20.1%50.1%40.4%
5 Year-43.1%-43.3%-21.0%-32.6%73.1%54.1%

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?

12.43x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CLR ($26.07) is trading above our estimate of fair value ($20.3)

Significantly Below Fair Value: CLR is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: CLR is poor value based on its PE Ratio (12.4x) compared to the Oil and Gas industry average (9.3x).

PE vs Market: CLR is good value based on its PE Ratio (12.4x) compared to the US market (18.3x).


Price to Earnings Growth Ratio

PEG Ratio: CLR is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: CLR is overvalued based on its PB Ratio (1.5x) compared to the US Oil and Gas industry average (0.8x).


Next Steps

Future Growth

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

16.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CLR's forecast earnings growth (16.8% per year) is above the savings rate (1.7%).

Earnings vs Market: CLR's earnings (16.8% per year) are forecast to grow faster than the US market (14.2% per year).

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

Revenue vs Market: CLR's revenue (7.8% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: CLR's revenue (7.8% per year) is forecast to grow slower than 20% 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 (17.7%).


Next Steps

Past Performance

How has Continental Resources performed over the past 5 years?

25.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CLR has high quality earnings.

Growing Profit Margin: CLR's current net profit margins (18.6%) are lower than last year (38.3%).


Past Earnings Growth Analysis

Earnings Trend: CLR's earnings have grown significantly by 25.4% 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 (-52.3%) over the past year, making it difficult to compare to the Oil and Gas industry average (-13.3%).


Return on Equity

High ROE: CLR's Return on Equity (11.3%) is considered low.


Return on Assets


Return on Capital Employed


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 ($1.4B).

Long Term Liabilities: CLR's short term assets ($1.2B) do not cover its long term liabilities ($7.5B).


Debt to Equity History and Analysis

Debt Level: CLR's debt to equity ratio (80.6%) is considered high.

Reducing Debt: CLR's debt to equity ratio has reduced from 120.3% to 80.6% over the past 5 years.

Debt Coverage: CLR's debt is well covered by operating cash flow (58.6%).

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?

0.77%

Current Dividend Yield


Dividend Yield vs Market

company0.8%marketbottom25%1.4%markettop25%3.7%industryaverage4.5%forecastin3Years0.8%

Current dividend yield vs market & industry

Notable Dividend: CLR's dividend (0.77%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: CLR's dividend (0.77%) is low compared to the top 25% of dividend payers in the US market (3.73%).


Stability and Growth of Payments

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 the US market.


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

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

1.9yrs

Average management tenure


CEO

Bill Berry (66yo)

0.08yrs

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 Chairman0yrsUS$13.33m77.43% $7.4b
William Berry
CEO & Director0.08yrsUS$384.59k0.23% $21.9m
Jack Stark
President & COO5.4yrsUS$6.04m0.23% $22.2m
John Hart
Senior VP14.3yrsUS$4.57m0.11% $10.9m
Patrick Bent
Senior Vice President of Operations0.08yrsUS$2.66m0.066% $6.4m
Shelly Lambertz
VP of Human Resources & Director1.8yrsUS$1.07m0.031% $3.0m
Claude Seaman
VP & Chief Accounting Officer0yrsno datano data
Diane Montgomery
Vice President of Corporate Finance & Treasury0yrsno datano data
Joe Davis
VP & Chief Information Officer3.9yrsno datano data
Rory Sabino
Vice President of Investor Relations1.9yrsno datano data

1.9yrs

Average Tenure

63.5yo

Average Age

Experienced Management: CLR's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Harold Hamm
Founder & Executive Chairman0yrsUS$13.33m77.43% $7.4b
William Berry
CEO & Director0.08yrsUS$384.59k0.23% $21.9m
Shelly Lambertz
VP of Human Resources & Director1.8yrsUS$1.07m0.031% $3.0m
Mark Monroe
Lead Director2.8yrsUS$396.18k0.069% $6.6m
John McNabb
Independent Director9.8yrsUS$376.18k0.012% $1.1m
Ellis McCain
Independent Director14yrsUS$385.29k0.016% $1.5m
Timothy Taylor
Independent Director0.3yrsno data0.0011% $101.7k

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 only sold shares 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$9.591b
  • Shares outstanding: 367.91m
  • 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 and natural gas production to energy marketing companies, crude oil refining companies, and natural gas gathering and processing companies. As of December 31, 2018, its proved reserves were 1,522 million barrels of crude oil equivalent (MMBoe) with estimated proved developed reserves of 675 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 Analysis2020/02/20 01:31
End of Day Share Price2020/02/19 00:00
Earnings2019/09/30
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.