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A Glance at Continental Resources’ Financial Position

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Financial position

Continental Resources (CLR) had a net debt-to-annualized EBITDAX (earnings before interest, tax, depreciation, depletion, amortization, and exploration expenses) ratio of 2.5x in 4Q16. 

The company reduced its debt by over $600 million in 2016, and it expects to keep this strategy in focus, with a view to sell its non-core assets.

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Debt maturity schedule

As we can see in the chart above, CLR has no major debt obligations until 2019, by which time the energy price environment is likely to have improved.

Another company that’s been taking steps to reduce its debt level is Whiting Petroleum (WLL). Anadarko Petroleum (APC) is yet another company that’s battling a high debt load. These companies form a combined ~6% of the SPDR S&P Oil & Gas Exploration & Production ETF (XOP)

We’ll explore CLR’s debt position and key financial fundamentals in another installation of this series, so keep watching Market Realist for updates.

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