Continental Resources (CLR) Update - August 12

[dan_s]

We will be publishing an updated profile on CLR on Friday morning. It should be posted to the EPG website late today.

I have increased my valuation by $5.50 to $59.00/share, primarily because of the significant improvement in the Company's balance sheet. Thanks to more than a $2.50/mcfe increase in Continental's realized natural gas & NGL prices year-over-year their debt reduction is way ahead of their guidance and I expect the pace of debt reduction to continue. They are also increasing dividends and stock repurchases.

[Fraser921]

Wells Fargo with an overweight to 45. Will be up today. Dan highlighted clr modeling in his latest video

[dan_s]

As I showed you in my August 22 podcast (1) strong natural gas and NGL prices are offsetting the dip in oil prices for CLR and (2) even if CLR's average oil price is $50/bbl in 2022 they will still generate over $1.5 Billion of free cash flow next year. CLR is a "Money Machine" that deserves a much higher share price.

I am finishing my work on EOG today. It is another one that should be a Core Holding for any portfolio manager.

[Fraser921]

Morgan Stanley maintains underweight target 34.00, which prompts 2 questions

1. How does he get an underweight and $ 34
2. How did he get his job?