What Does Continental Resources’ Revenue Growth Trend Indicate?

Continental Resources’ (CLR) 1Q16 revenue fell by ~27% YoY (year-over-year). By comparison, its YoY revenue growth was around -37% in 1Q15 and about -59% in 4Q15.

We should note from the graph that CLR’s revenue growth has been negative since 1Q15. However, estimates have indicated that CLR’s revenue could improve and even show positive growth in 2Q16.

Lower realized energy prices (USO) (UNG) have pulled down the revenues of several upstream companies, which have, in turn, affected earnings. Peers Concho Resources (CXO) and Apache (APA) reported YoY revenue growths of -7% and -35%, respectively, in 1Q16.