Continental Resources (CLR) Update - Dec 29

[dan_s]

CLR: Upgrading on Unhedged Oil Upside, Solid FCF & Improving Balance Sheet

Market Cap (M): $5,874.0 - Price: $16.26 - Target: $20 - Overweight
Leo Mariani, CFA at KeyBanc

We are upgrading shares of CLR from Sector Weight to Overweight as a result
of improved leverage next year, significant FCF generation in 2021, and nice
exposure to higher oil prices. Additionally, we expect 3% better than consensus
oil production in 2021, with higher expected Bakken activity and a transition
back to an oil focus in Oklahoma. We also expect CLR to reinstate its dividend
in 2021.