Continental Resources (CLR)

[dan_s]

Continental Resources (CLR): An updated Net Income & Cash Flow Forecast model has been posted under the Sweet 16 Tab.

My Fair Value Estimate increases to $151.40.

When stocks like CLR sell down because they miss analysts EPS by a couple cents, those are great buying opportunities. This business is all about production and proven reserve growth. Just because a bunch of analysts miss the forecast, why should the company be punished? This is a very capital intensive business that also has to deal with weather. It seems Wall Street forgot we had an historically tough winter. Plus, quarterly earnings per share are almost meaningless for E&P companies anyway with all this nonsense accounting for derivatives and impairment. CLR uses the Successful Efforts method which makes it worse.

Focus on cash flow from operations and production growth. At year-end focus on proven reserve growth.

CLR is on-track to increase production by 30% this year. That is incredible for a company of this size.

Now take a look at the 5-year chart for CLR. Unless oil and gas prices decline (which ain't happening), that trend will continue my friends.

Now: Who are the Texans going to select with that #1 pick?????????????????????????