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Continental Resources Inc CLR

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Energy Stocks Surge on Positive Vaccine News, but Plenty of Upside Remains

Preston Caldwell Equity Analyst

Analyst Note

| Preston Caldwell |

Energy stocks surged on Nov. 9 following Pfizer's announcement of favorable phase 3 data on its COVID-19 vaccine. The broader U.S. Market Index was up 1% on the day, but the energy sector led the way up 14%. Oil prices (West Texas Intermediate) were also up about 8%. Despite the rally, the energy sector is still down around 45% year-to-date. We think the sell-off has been overdone, and as such energy stocks continue to look undervalued overall. Our median covered energy stock trades at a 37% discount to our fair value. Within energy, oilfield services look cheapest overall, trading at a median 52% discount to fair value. E&Ps are also at a 45% median discount to fair value.

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Company Profile

Business Description

Continental Resources is a U.S. oil and gas producer targeting in the Bakken Shale in North Dakota and the Scoop/Stack plays in Oklahoma. At the end of 2019, the company reported net proven reserves of 1.6 billion barrels of oil equivalent. Net production averaged 340 thousand barrels of oil equivalent per day in 2019, at a ratio of 58% oil and 42% natural gas and NGLs.

Contact
20 North Broadway
Oklahoma City, OK, 73102
T +1 405 234-9000
Sector Energy
Industry Oil & Gas E&P
Most Recent Earnings Sep 30, 2020
Fiscal Year End Dec 31, 2019
Stock Type Hard Assets
Employees 1,260

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