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Continental Resources: An independent US oil producer

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A snapshot of Continental Resources

Continental Resources, Inc. (CLR) engages in crude oil and natural gas exploration and production. Its operations are located throughout the following three regions of the United States:

  1. North Region. Consists of properties north of Kansas and west of the Mississippi River and includes North Dakota Bakken, Montana Bakken, and the Red River units.
  2. South Region. Consists of all properties south of Kansas and west of the Mississippi River, including various plays in the South Central Oklahoma Oil Province (or SCOOP) and the Northwest Cana and Arkoma areas of Oklahoma.
  3. East Region. Consists of undeveloped leasehold acreage east of the Mississippi River.
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Reserves and production

Continental Resources’ (CLR) proved reserves at year-end 2013 totaled 1.1 billion barrels of oil equivalent (or boe), a 38% increase from 2012. By the end of 2013, Continental Resource’s reserve base consisted of 68% crude oil and 32% natural gas and natural gas liquids (or NGLs). Its crude oil reserve has grown at a 47% compound annual growth rate since year-end 2008. In 2013, crude oil accounted for 71% of Continental Resource’s total production and 87% of the total oil and gas revenues.

Share price down over past one year

In the past one year, Continental Resource’s share price has gone down by 29%. The fall has been sharper since the end of August. Since then, its share has plummeted by ~52%. Share prices of most of the oil-heavy upstream companies have declined since June this year. The fall in crude oil price has negatively affected these companies’ revenues and margins.

Since June, Chevron Corporation’s (CVX) share price decreased 10%, while Whiting Petroleum  Corporation’s (WLL) share price declined by 36% in the past one year. EOG Resources (EOG), on the other hand, saw 15% increase in share price. EOG Resources’ production consists of ~40% natural gas and ~47% crude oil. All these companies are components of the Energy Select Sector Standard & Poors depositary receipt (or SPDR) exchange-traded fund (or ETF) (XLE).

Stock split

On August 18, 2014, Continental Resources (CLR) declared a two-for-one stock split of its common stock. The additional shares were awarded to the shareholders in the form of a stock dividend.

Check out the following section to find out about Continental Resources’ (CLR) assets and reserves in more detail.

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