Continental Resources (CLR)

dan_s · Post by **dan_s** » Fri Jul 20, 2018 10:05 am

CLR is the 3rd largest company (by market cap) in the Sweet 16 (behind EOG and PXD and just ahead of CXO). NONE OF CLR'S OIL IS HEDGED.

CLR is currently trading at just under $62/share.
> In July six Wall Street Analysts have updated their valuation / price targets submitted to Reuters. Their valuations range from $69 to $83 a share.
> Based on my forecast/valuation model, CLR's cash flow from operations should exceed their CapEx program by approximately $1.2 Billion this year.
> Production growth is ~20% per year and they have lots of running room.

I have updated my forecast model and it will be posted to the EPG website. My valuation is $86/share and there is definitely upside to that number if they hit the high end of their production guidance, which they usually do.

CLR is one of the few Sweet 16 that has no Permian Basin operations. It is primarily a Bakken and SCOOP/STACK company, so their oil is selling at just a slight discount to WTI.