Continental Resources (CLR)
Posted: Sun Feb 26, 2017 3:06 pm
I have updated my forecast/valuation model for CLR and it will be posted to the EPG website later today.
My valuation is $79.00/share, compared to First Call's price target of $61.11.
CLR is getting outstanding well results in SCOOP, STACK and their core area of the Bakken. Cash flow from operations should more than cover this year's capex budget of $1.95 Billion. Some non-core asset sales this year should lower debt.
None of their oil is hedged, which is the only reason I can find for the stock trading at such a discount.
Production growth should accelerate in the 2nd half of this year. Take a look at what they are saying about "Deep STACK".
My valuation is $79.00/share, compared to First Call's price target of $61.11.
CLR is getting outstanding well results in SCOOP, STACK and their core area of the Bakken. Cash flow from operations should more than cover this year's capex budget of $1.95 Billion. Some non-core asset sales this year should lower debt.
None of their oil is hedged, which is the only reason I can find for the stock trading at such a discount.
Production growth should accelerate in the 2nd half of this year. Take a look at what they are saying about "Deep STACK".