Continental Resources explores, develops, and produces crude oil and natural gas properties in the north, south, and east regions of the United States. The company was founded in 1967 and is based in Oklahoma City, Oklahoma.
CLR Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for CLR, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Continental Resources Inc ranked in the 0th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. In terms of the factors that were most noteworthy in this DCF analysis for CLR, they are:
The compound growth rate in the free cash flow of Continental Resources Inc over the past 3.75 years is -0.49%; that's better than merely 3.51% of cash flow producing equities in the Energy sector, where it is classified.
Continental Resources Inc's effective tax rate, as measured by taxes paid relative to net income, is at 0 -- greater than only 0% of US stocks with positive free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
CVI, EXTN, GLOG, KLXE, and KOS can be thought of as valuation peers to CLR, in the sense that they are in the Energy sector and have a similar price forecast based on DCF valuation.
Announcement of Periodic Review: Moody's announces completion of a periodic review of ratings of Continental Resources, Inc. New York, September 14, 2020 -- Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of Continental Resources, Inc. and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers.
The news that Saudi Arabia is cutting the price at which it sells oil for October delivery sent Brent crude prices down 5% in Tuesday trading, and WTI off by more than 7%. U.S. and Canadian oil stocks predictably took it on the chin, and at the close on Tuesday, shares of Suncor Energy (NYSE: SU), Continental Resources (NYSE: CLR), and Occidental Petroleum (NYSE: OXY) were all down nearly 10%. Continental, with a $5.3 billion market capitalization, is the most cash-poor of the three, with less than $7 million in the bank, but $5.8 billion in debt -- more than its own market cap.
Continental Resources (CLR) reported an increase in losses in its second-quarter results, while the company's debt has also climbed but its future is looking better. With the increase in oil prices and restoration of curtailed production, the Oklahoma-based oil producer's earnings should recover. It will also likely generate strong levels...
Sarfaraz A. Khan on Seeking Alpha | August 24, 2020