|Bid||28.20 x 800|
|Ask||28.21 x 800|
|Day's Range||28.10 - 28.86|
|52 Week Range||27.26 - 62.68|
|Beta (3Y Monthly)||1.95|
|PE Ratio (TTM)||11.26|
|Earnings Date||Oct 30, 2019|
|Forward Dividend & Yield||0.20 (0.71%)|
|1y Target Est||46.23|
Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...
Trade talks between China and the U.S. are about to recommence, and a combination of a weakening economy and an impeachment inquiry are likely to make Beijing’s stance aggressive
(Bloomberg) -- Continental Resources Inc., the oil and gas explorer founded by billionaire Harold Hamm, is exploring a sale of a non-controlling stake in its water-infrastructure business that could value the unit at $1 billion or more, according to people familiar with the matter.The Oklahoma City-based company is working with an adviser to solicit interest in the unit, which helps gather and dispose of water used in drilling in North Dakota’s Bakken shale and the Scoop and Stack fields in Oklahoma, said the people, who asked to not be identified because the matter isn’t public.Continental fell 3.8% to $27.47 at 12:18 p.m. in New York trading, giving it a market value of $10.3 billion. The shares have fallen 58% in the past year.Representatives for Continental didn’t immediately respond to requests for comment.Infrastructure for handling the immense amount of water used in hydraulic fracturing has become increasingly valuable in recent years, thanks to the shale boom. Continental has already taken advantage of that dynamic, selling some of its water business in Oklahoma to Lagoon Water Solutions for $85 million in July.Continental got a "decent price," Hamm, Continental’s chief executive officer, said in the company’s second-quarter earnings call in August."We estimate that our remaining water assets are valued at approximately $1 billion," Hamm said. "Our water infrastructure assets represent more shareholder value that is not currently being recognized by the market."Its water business generates about $100 million in annual earnings before interest, taxes, depreciation, depletion, amortization and exploration expenses, he said.Such free cash flow can support significant borrowings because it’s anchored by oil and gas exploration volumes, Continental has told suitors, the people said.Continental has also told suitors that it’s a proven partner, the people said, with strategic relationships with companies including Franco-Nevada Corp., an investment company that owns natural resources royalties.\--With assistance from Rachel Adams-Heard.To contact the reporters on this story: Gillian Tan in New York at email@example.com;Kiel Porter in Chicago at firstname.lastname@example.orgTo contact the editors responsible for this story: Alan Goldstein at email@example.com, ;Liana Baker at firstname.lastname@example.org, Matthew Monks, Pierre PauldenFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Continental Resources Inc. is exploring a sale of a non-controlling stake in its water-infrastructure business that could value the unit at $1 billion or more.
Earnings Conference Call Scheduled for Thursday, October 31, 2019 at 12:00 p.m. ET OKLAHOMA CITY , Sept. 30, 2019 /PRNewswire/ -- Continental Resources, Inc. (NYSE: CLR) (the Company) plans to announce ...
Understand how the fundamentals of the energy sector are changing in order to invest in it, says Jan-Willem Bode, a director at Navigant.
Oil prices have fallen on Saudi promises that Aramco will restart production by the end of the month, leaving some analysts to question the apparent lack of a risk premium
Oil prices giveth and taketh away as traders have experienced over the past two days. After surging Monday on the back of news of drone strikes against major Saudi Arabian oil assets, crude tumbled on Tuesday after the kingdom said it believes it can restore much of the output lost in the attacks more quickly than was initially expected. As a result of Tuesday's oil pullback, the iShares U.S. Oil & Gas Exploration & Production ETF (CBOE: IEO) slipped nearly 3% on volume that was more than seven times the daily average.
STOCKSTOWATCHTODAY BLOG Three numbers to start your day: The UAW Strike Costs (GM) $50 Million —each day, in earnings. The United Automobile Workers voted to strike on Sunday and told its roughly 46,000 members to walk out or not show up to work Monday.
(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...
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.