|Bid||33.65 x 1400|
|Ask||33.65 x 2900|
|Day's range||33.06 - 38.80|
|52-week range||27.54 - 71.95|
|Beta (3Y monthly)||1.92|
|PE ratio (TTM)||13.50|
|Earnings date||28 Oct. 2019 - 1 Nov. 2019|
|Forward dividend & yield||0.20 (0.62%)|
|1y target est||50.06|
(Bloomberg) -- Billionaire oil baron Harold Hamm just had a very big day.Shares of his Continental Resources Inc. surged 22% Monday, the most since 2016, adding $2 billion to his net worth, more than anyone else in the 500-member Bloomberg Billionaires Index.Global oil prices surged the most on record after a weekend aerial attack on Saudi Arabia’s Abqaiq oil complex crippled production, knocking out 5% of the world’s supply. A return to full operating capacity could take weeks or months.Read more: Oil jumps most on record after attack cripples Saudi productionShares of Continental had tumbled 20% on the year through Friday, a decline that was almost erased by Monday’s advance. The same is true for Hamm’s fortune, which now stands at $11.6 billion. He owns 77% of the Oklahoma City-based oil exploration and production firm.Hamm, 73, said Thursday in an interview with Bloomberg Television that he has no intention of taking Continental private, a month after he mused during a conference call whether remaining a public company was worth it.\--With assistance from Jack Witzig.To contact the reporter on this story: Emma Vickers in New York at email@example.comTo contact the editors responsible for this story: Peter Eichenbaum at firstname.lastname@example.org;Pierre Paulden at email@example.comFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
We think intelligent long term investing is the way to go. But no-one is immune from buying too high. For example the...
(Bloomberg) -- President Donald Trump met Wednesday with the heads of two of the nation’s largest refiners as he seeks a deal that would boost corn-based ethanol and soy-based biodiesel without alienating oil companies required to use the products.Trump met with Marathon Petroleum Corp. chief executive Gary Heminger; Valero Energy Corp. chief executive Joe Gorder; and Harold Hamm, the founder of Continental Resources Inc., according to people familiar with the matter who asked not to be named describing private discussions. Although Hamm’s Continental is an oil producer without direct involvement in U.S. biofuel mandates, the president has long tapped the billionaire oilman’s energy expertise.White House officials are set to meet Thursday with senators from corn- and ethanol-producing states, amid deep anger in the Midwest U.S. over the Environmental Protection Agency’s decision waive some oil refineries from annual blending quotas.Administration officials have spent weeks trying to develop a suite of pro-ethanol and pro-biodiesel policy changes that would temper the angst in Iowa and other politically important Midwest U.S. states. But they’re trying to do it without prompting a backlash in the Rust Belt, even as oil industry workers and labor unions demonstrated their opposition with a rally in Toledo, Ohio, on Thursday.Ethanol manufacturers and Iowa politicians have been cool to a drafted White House plan that would give a 5% boost to biofuel-blending requirements in 2020 and are asking the administration to do more to formally account for refinery exemptions as part of the quotas. In a separate meeting Wednesday, White House officials told biofuel producers to swiftly offer alternatives to that plan, warning that they are running out of time to make changes to proposed 2020 quotas.Refining representatives, who also met with National Economic Council staff on Wednesday, are pressing the administration to find ways to constrain the cost of tradable credits known renewable identification numbers, which are used to prove they have fulfilled biofuel-blending requirements. Although refinery exemptions have driven down the cost of those compliance credits, any move to boost future quotas threatens to propel their prices again.Some refiners are advancing a plan that would allow the EPA to sell its own compliance credits whenever those RINs prices get too high. The EPA-generated credits would not be tied to actual biofuel production or blending but revenue from their sale could be steered to building out fueling infrastructure to get more ethanol to consumers.Marathon Petroleum spokesman Jamal T. Kheiry confirmed Wednesday’s meeting, saying the company “always appreciates the opportunity to share our thoughts with elected officials on policies that can impact our business and consumers who rely on our products.”Asked about Hamm’s involvement, Kristin Thomas, a senior vice president with Continental Resources, said: “Mr. Hamm is supportive of the president and his positive impact on American energy.”Representatives for Valero did not immediately respond to requests for comment.(Updates with more details on White House meetings from third paragraph.)\--With assistance from Josh Wingrove.To contact the reporters on this story: Jennifer A. Dlouhy in Washington at firstname.lastname@example.org;Mario Parker in Chicago at email@example.com;Jennifer Jacobs in Washington at firstname.lastname@example.orgTo contact the editors responsible for this story: Jon Morgan at email@example.com, Elizabeth WassermanFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Continental Resources (CLR) has witnessed a significant price decline in the past four weeks, and is seeing negative earnings estimate revisions as well.
Continental Resources (CLR) reported earnings 30 days ago. What's next for the stock? We take a look at earnings estimates for some clues.
(Bloomberg Opinion) -- When the market doesn’t go your way, there’s a certain deflective comfort to be found in blaming the market. The slump in energy stocks has spurred some talk of getting out of public markets altogether – even as one company, Saudi Aramco, is apparently considering finally taking a giant plunge into them. Conflicting signals, yes, but united in one important aspect. Harold Hamm, CEO of fracker Continental Resources Inc., was asked on the latest earnings call what value there was in the company remaining public. The stock has fallen by more than half since last October to about $30, while the consensus target is about $51, according to figures compiled by Bloomberg. Hamm responded he didn’t see a lot of value in it “in today’s market,” and the analyst commiserated on the herd’s apparent short-sightedness, saying “there’s clearly something broken there.”Over in the power sector, Vistra Energy Corp.’s CEO, Curtis Morgan, fielded a similar question for similar reasons. While professing “faith” in public markets, he added that going private must be considered if the stock’s perceived discount doesn’t ultimately close.There are specific reasons why this question was asked of these two companies. Hamm owns almost 77% of Continental anyway, so the free float is currently valued at just $2.8 billion. Vistra, meanwhile, has private equity deep in its DNA, being one piece resulting from the 2007 buyout of TXU Corp. and run by an alumnus of Energy Capital Partners LLC.Public markets aren’t paragons of rationality, with the wisdom of the crowd repeatedly giving way to the mania of the mob. But it’s tough to argue the market is “broken” here. After all, if it’s irrational now, then wasn’t that also the case five years ago, when Continental traded at about $80 just as oil prices began to slip? Recall the company sold its hedging book around that time, ditching its insurance against an oil crash, with Hamm in November 2014 telling, coincidentally, the same analyst:… We feel like we're at the bottom rung here on the [oil] prices and we'll see them recover pretty drastically, pretty quick.Clearly, there isn’t a public-market monopoly on getting stuff wrong.The private market has its own checkered record in energy. There have been obvious blowups, such as KKR & Co. Inc.’s forays with Samson Resources Corp. and, of course, TXU. Vistra’s sector, merchant generation, has a long history of keeping bankruptcy judges busy, which is precisely why it’s one of only two public companies left – and why both are diversifying into more stable retail operations.Continental and Vistra have sold off for similar and quite rational reasons. Oil and gas prices are in the tank, and forecasts for Continental’s earnings take their cue from that. Similarly, as expectations of a hot and profitable summer in the Texas power market have cooled off, so Vistra’s stock has dropped with power futures.This cuts both ways, and investors with a bullish view on energy prices are free to swoop in. They haven’t. That may reflect such ordinary things as fear of a recession, but I think it has more to do with a deterioration in one longstanding reason to own energy stocks: gaining exposure to the underlying commodity.Chalk it up to a mixture of hindsight and foresight. Investors have noticed, especially with E&P companies, that past windfalls generated by price rallies tended to accrue to drilling budgets and executive compensation instead of them. Looking ahead, fundamental shifts in the energy market – from shale to renewables to peak demand forecasts to trade wars – inject volatility and raise doubts about long-term pricing. Rather than put a big multiple on future earnings tied to commodity prices and growth, investors prioritize near-term free cash flow that can underpin dividends – show me the money, in other words.You can see this in E&P valuation multiples. Traditionally, these swung low when oil prices were very high, in anticipation of an inevitable cyclical downswing, and rose when prices fell, pricing in the next recovery. In this latest cycle, however, that relationship has changed. When oil prices fell sharply in 2015 and 2016, valuation multiples soared (and equity issuance spiked). But when oil dropped in late 2018 and this summer, multiples fell alongside it.Similarly, while Bloomberg NEF reports Texas’ wholesale electricity market is the tightest it’s been since the lucrative summer of 2011, investors aren’t paying up for the option in Vistra’s stock. That may be a trust thing, in part, as the timetable for deleveraging set by Vistra when it bought Dynegy Inc. has slipped. But it also reflects the quite reasonable concern that new renewable capacity, especially solar power, could loosen Texas’ electricity market quite quickly – as has happened in the past.The higher risks around energy earnings and damaged trust means investors demand more to buy into them – meaning a higher cost of capital expressed in lower valuations.Herein lies a lesson for Saudi Arabian Oil Co., to give it its full name. The seemingly endless saga of Aramco’s IPO has been dogged by the $2 trillion market-cap target voiced by Prince Mohammed Bin Salman in 2016. As I wrote here, that number reflected a simplistic valuation of Aramco’s vast reserves, even though today’s oil investors prioritize dividends partly because they suspect barrels not due to be produced for another few decades may never see the light of day. Just like earnings streams for Continental and Vistra, the benefit of the doubt, expressed as a high multiple, has diminished.Talk of an Aramco IPO was revived, somewhat jarringly, in the same week Saudi officials were trying to talk up sagging oil prices. Maybe the IPO talk remains just that, but it could also mean Saudi Arabia may actually go ahead, even if that finally buries the $2 trillion fantasy. Facing chronic deficits, Riyadh could use the money; and, as cynics often contend, the public market is where the dumb – that is, cheap – money is to be found. The one catch is that, when it comes to energy, the dumb money looks a little wiser these days.To contact the author of this story: Liam Denning at firstname.lastname@example.orgTo contact the editor responsible for this story: Mark Gongloff at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Liam Denning is a Bloomberg Opinion columnist covering energy, mining and commodities. He previously was editor of the Wall Street Journal's Heard on the Street column and wrote for the Financial Times' Lex column. He was also an investment banker.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Continental Resources has lost around US$15 billion of its market capitalization since October 2018, shedding more than half of its value as investors are losing faith
(Bloomberg) -- Bernie Sanders says the industry is a criminal enterprise. Joe Biden is vowing to take action against it. Other candidates are competing to say who will wean America from its products the soonest.The fossil fuel industry is squarely in the cross hairs of Democrats running for the White House as they move sharply to the left on climate change, evoking growing alarm from a sector that’s found a cheerleader in the Trump administration. It has moved to rescind regulations on oil drilling and proposed extraordinary measures to aid coal mining.“We are made to be just some kind of evil force,” said Kathleen Sgamma, president of Western Energy Alliance, which represents oil and gas producers. “They are doubling down on it and adding very hostile rhetoric.”Big oil and its Republican allies say the Democrats’ swing to the left on the issue will backfire with voters, especially in states such as Ohio that Trump won in part with an appeal to aggrieved coal miners. These critics have commissioned studies asserting that the Democratic polices would cost millions of jobs while increasing pump prices for gasoline.But that hasn’t deterred candidates, such as Sanders, a Vermont senator.“We’ve got to ask ourselves a simple question: What do you do with an industry that knowingly, for billions of dollars in short-term profits, is destroying this planet?” Sanders said during the most recent Democratic candidate debate. “I say that is criminal activity that cannot be allowed to continue.”The party’s eagerness to demonize the industry is a marked shift from the 2016 election cycle when Hillary Clinton embraced natural gas as a “bridge fuel” to cleaner power sources and declined to endorse a ban on the controversial drilling technique known as fracking.Since then, polls have shown voters increasingly concerned about climate change as its effects become more apparent in the form of catastrophic hurricanes, floods, droughts and wildfires. And the progressive Green New Deal, which calls for a “10-year-mobilization” to confront climate change by essentially ending the use of fossil fuels and achieving net-zero carbon emissions, has changed the political calculus of the issue.“As people are becoming more aware of this emergency they are starting to look for who is responsible,” said Jack Shapiro, a senior climate campaigner with liberal environmental group Greenpeace USA. “I think it’s a common-sense conclusion that if burning fossil fuels is a major cause of climate change, then phasing-out fossil fuels and a reckoning for the fossil fuel industry needs to be part of the solution.”The candidates are offering increasingly aggressive climate plans -- many of which seek to effectively zero-out greenhouse gas emissions by mid-century or sooner. To do that they’re taking aggressive stances aimed squarely at the fossil fuel industry.A $10 trillion climate plan released by New York Senator Kirsten Gillibrand, for example, vows to “make climate polluters pay” with an excise tax on fossil fuel production she said would generate $100 billion annually to be used for climate projects.A “Freedom from Fossil Fuels” plan by Washington state Governor Jay Inslee, who is centering his presidential run on halting climate change, calls for rejecting new pipelines, halting fossil fuel exports, and even restricting existing drilling projects on federal lands, as part of a transition away from fossil fuels.Even Biden, the race’s front-runner who has positioned himself as a union-friendly moderate focused on preserving the middle class, issued an ambitious climate plan that bans new projects on public lands and waters, promises aggressive limits on the sector’s emissions of methane, and calls for a price on carbon.Asked at a recent debate whether fossil fuels, including coal, and fracking would have a place in his administration, Biden said: “No. We would -- we would work it out. We would make sure it’s eliminated and no more subsidies for either one of those, either -- any fossil fuel.”The campaign issued a statement the next day saying he is committed to achieving 100% clean energy by 2050. He has also sworn off campaign contributions from the fossil fuel industry.“We’re not talking about a pendulum swing, we are talking about a catapult,” said Kevin Book, managing director of Washington-based ClearView Energy Partners LLC. “That’s the degree of regulatory fervor we would expect if you had all three centers of power turn blue in 2020,” referring to Democratic wins in the White House and both chambers of Congress.The oil and gas industry and its allies say plans to end fossil fuel use aren’t based in reality and aren’t achievable given energy demand. And they say Democrats are ignoring the climate benefits of natural gas -- which has about half the emissions of coal. They’re warning Democrats that aggression toward the industry could alienate millions of U.S. voters who work for oil companies, refiners or help transport fuels around the world.“We are going to use this against whoever is the nominee,” said Mike McKenna, a GOP strategist whose clients include the refining industry. “Like everything else in this primary season it’s a wonderful lovely gift. Every time these guys open their mouths I can’t believe how easy they are making it.”Mike Sommers, head of the American Petroleum Institute, said in a call with reporters last month that “we know the threat of climate change is real but the solutions also have to be based in reality.”An analysis of “keep it in the ground” policies including bans on fracking and federal fossil fuel production, commissioned by the trade group found 5.9 million jobs would be lost, and a cumulative gross domestic product reduction of $11.8 trillion.The fossil fuel industry is betting on Republicans for continued support.In 2016, the oil, gas and coal sectors donors favored Trump over Clinton -- but backed both candidates. Trump’s campaign got $1.4 million from donors in the fossil fuel industries, according to the Center for Responsive Politics, while Clinton got $988,583. A big part of the disparity were donations from coal producers, who gave $280,189 to Trump and just $4,302 to Clinton.This time around, the industry is already sending checks. Trump’s re-election effort has benefited from an influx of donations, including $339,301 from oil and gas interests. America First Action, the super-PAC that Trump has endorsed, got a $750,000 contribution from Javaid Anwar, the CEO of Midland Energy Inc., in March. Harold Hamm and his Continental Resources Inc. each gave $500,000 in 2018.Overall, the oil and gas industry has spent nearly $28 million on contributions to U.S. lawmakers during the 2018 election cycle -- $23 million of which went to Republicans, according to an analysis by the Center for Responsive Politics.“Democrats will destroy the economy and kill millions of jobs in states across the country with their vendetta against coal, oil, and natural gas,” Trump campaign manager Brad Parscale said in a statement on Thursday. “Their radical plan to eliminate those industries will devastate workers in Pennsylvania, Ohio, Michigan, New Mexico, Colorado, and elsewhere.”’\--With assistance from Bill Allison and Jennifer A. Dlouhy.To contact the reporter on this story: Ari Natter in Washington at firstname.lastname@example.orgTo contact the editors responsible for this story: Jon Morgan at email@example.com, Wendy BenjaminsonFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Oil prices have had a tough start to the week as the trade war between China and the U.S. intensified and the Treasury Department labelled China a currency manipulator
Continental Resources (CLR) delivered earnings and revenue surprises of -1.67% and 3.63%, respectively, for the quarter ended June 2019. Do the numbers hold clues to what lies ahead for the stock?
After Continental Resources, Inc.'s (NYSE:CLR) recent earnings announcement in March 2019, it seems that analyst...
Many investors are still learning about the various metrics that can be useful when analysing a stock. This article is...
Does the June share price for Continental Resources, Inc. (NYSE:CLR) reflect what it's really worth? Today, we will...
Comstock Resources (CRK) agreed to buy Cover Park Energy for $2.2 billion. Meanwhile, Royal Dutch Shell (RDS.A) pledged to return at least $125 billion to its shareholders between 2021 and 2025.