What Does Continental Resources’ Revenue Growth Trend Indicate?



Continental Resources’ revenue trend

Continental Resources’ (CLR) 2Q16 revenue fell ~30% YoY (year-over-year). In comparison, its YoY revenue growth was ~-25% in 2Q15 and ~-27% in 1Q16.

As we can see in the graph above, CLR’s revenue growth has been negative since 1Q15. Analysts’ estimates indicate that CLR’s YoY revenue growth in 3Q16 will be ~-14%

Lower realized energy prices (USO) (UNG) have dragged on the revenues of several upstream companies. These revenue falls have, in turn, affected earnings. CLR’s peers Concho Resources (CXO) and Apache Corporation (APA) reported YoY revenue growths of -13% and -32%, respectively, in 1Q16.

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