Continental Resources (CLR)

dan_s · Post by **dan_s** » Tue Jan 17, 2017 12:03 pm

I have updated my CLR forecast/valuation model, extending it through 2018. It will be posted to the EPG website this afternoon.

My valuation increases by $13.50/share to $78.50. First Call's price target is $59.83.

CLR has significant upside in SCOOP/STACK where they report better well results quarter-after-quarter. Go to CLR's website and view their December presentation.

None of CLR's oil is hedged. The oil and gas prices that I use in the forecast model are adjusted for regional price differentials.
> There is a fairly large deduct on the North Dakota oil.
> CLR does not break out NGLs from natural gas when it reports production, therefore the combined gas+NGL prices I'm using may be too low because I think NGL prices will double in 2017, moving to 50% of WTI by mid-year.