Continental Resources (CLR) Update - Mar 13
Posted: Fri Mar 13, 2020 1:17 pm
We will be publishing an updated profile on CLR next week. NONE of CLR's oil is hedged, so of all the Sweet 16 companies they have the most exposure to the "Price War".
I have updated my forecast/valuation model for CLR using much lower realized oil prices. My valuation drops from $45 to $25 per share. Three other analyst have published fresh reports on CLR and their price targets range from $7 to $35. To say there is a lot of different opinions on how the Saudi Arabia vs Russian price war will end is an understatement.
My Take on oil prices is that they will flop around $30/bbl for awhile, but ramp up once the COVID-19 virus FEAR cools off. It will cool off as the weather heats up. They call it "Flu Season" for a reason and like all of the other flu viruses, it will die out in May & June.
"U.S. West Texas Intermediate and international-benchmark Brent crude oil futures are edging higher on Friday. The move is being fueled by stronger demand for risky assets after U.S. equity markets soared on the opening. There is also a little growing optimism that demand in Asia, especially from China, may start to pick up over the near-term as the number of new coronavirus cases in the country starts to decline." OilPrice.com on 3/13/2020
I have updated my forecast/valuation model for CLR using much lower realized oil prices. My valuation drops from $45 to $25 per share. Three other analyst have published fresh reports on CLR and their price targets range from $7 to $35. To say there is a lot of different opinions on how the Saudi Arabia vs Russian price war will end is an understatement.
My Take on oil prices is that they will flop around $30/bbl for awhile, but ramp up once the COVID-19 virus FEAR cools off. It will cool off as the weather heats up. They call it "Flu Season" for a reason and like all of the other flu viruses, it will die out in May & June.
"U.S. West Texas Intermediate and international-benchmark Brent crude oil futures are edging higher on Friday. The move is being fueled by stronger demand for risky assets after U.S. equity markets soared on the opening. There is also a little growing optimism that demand in Asia, especially from China, may start to pick up over the near-term as the number of new coronavirus cases in the country starts to decline." OilPrice.com on 3/13/2020