What Lies in Store for Continental Resources in 4Q16?



Continental Resources’ 4Q16 revenue estimate

Continental Resources (CLR) is expected to release its 4Q16 earnings after markets close on February 23, 2017. Notably, its 4Q16 revenue estimate is higher than its revenues were in the previous quarters of 2016.

For 4Q16, CLR’s revenue estimate is ~$581 million, which would be ~0.95% higher than its 4Q15 revenue.

The graph above shows that Continental Resources’ revenue missed analysts’ estimates in the past two quarters but wound up in line with estimates in the two quarters before that.

Investors will be watching to see how things pan out for the upstream company in 4Q16—especially with the improved energy prices we saw in 4Q16. Improved energy prices (USO) (UNG) can drive realized prices higher, which, in turn, can drive revenues higher.

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4Q16 EPS estimates

Continental Resources’ 4Q16 EPS (earnings per share) estimate is -$0.10, as compared to its 3Q16 EPS of -$0.22. In 4Q15, its EPS was -$0.23. Peers Apache (APA) and Newfield Exploration (NFX) are expected to report EPS of $0.10, and $0.35, respectively, for 4Q16.

Notably, these three companies make up 6% of the SPDR S&P Oil & Gas Exploration & Production ETF (XOP).

Key highlights in 2016

CLR’s key focus in 2016 was to strengthen its Bakken, STACK and SCOOP positions. Continental Resources’ stock had recovered significantly in 2016. CLR’s aggressive strategy to counter low prices and the turnaround in crude oil prices contributed to this increase.

For more details, check out Continental Resources Rises 101%: What’s Its Secret? Continue to the next part for a look at the company’s strategy and outlook for 2017.


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