Energy Prospectus

CLR Adjusted Net Income beat my 4th quarter forecast.

OKLAHOMA CITY, Feb. 24, 2015 /PRNewswire/ -- Continental Resources, Inc. (CLR) ("Continental" or the "Company") today announced fourth quarter and full-year 2014 operating and financial results. Net income for the quarter ended December 31, 2014 was $114.0 million, or $0.31 per diluted share, compared with net income of $132.8 million, or $0.36 per diluted share, for the fourth quarter of 2013. Excluding items typically excluded from published analyst estimates, adjusted net income for the fourth quarter of 2014 was $420.8 million, or $1.14 per diluted share, an 84% increase over adjusted net income of $228.1 million, or $0.62 per diluted share, for the fourth quarter of 2013.

Net income for full-year 2014 was $977.3 million, or $2.64 per diluted share, compared with net income of $764.2 million, or $2.07 per diluted share, for full-year 2013. Excluding items typically excluded from published analyst estimates, adjusted net income for full-year 2014 was $1.27 billion, or $3.43 per diluted share, a 29% increase over adjusted net income of $986.1 million, or $2.67 per diluted share, for full-year 2013.

Reiterate Buy from Stifel on 2-25-2015
"We continue to see long-term upside potential should oil move toward our 2016
forecast of $65/bl and long-term forecast of $80/bl. We expect lower costs and
high-grading during 2015 to drive continued operational efficiencies and boost well
economics. As such, we reiterate our Buy rating and $55 target price."

I have updated my CLR forecast. It will be on the EPG website this afternoon.

My Fair Value Estimate increased $0.40 to $54.20.
> Q1 and Q2 EPS will be near zero, but cash flows will remain strong and should cover their capex
> Production and EPS should ramp up in Q3
> Drilling & completion costs per well are dropping fast
> SCOOP looking better and better
> Cash Flow From Operations s/b over $2 Billion
> CLR has a strong balance sheet and more than enough liquidity to fund their reduced capex program

We will publish an updated profile on CLR next week.