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Why Did Continental’s Stock Rise after Its 2Q17 Earnings?

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Aug. 11 2017, Updated 10:11 p.m. ET

CLR’s stock performance

The day after Continental Resources’ (CLR) 2Q17 aftermarket earnings release on August 8, 2017, CLR stock rose ~5.7% on August 9. YoY (year-over-year), the stock has fallen ~34.3%.

CLR stock has fallen significantly this year, but it has recently been showing signs of an uptrend, as crude oil prices (UCO) appear to be rising. Crude has remained below $50 per barrel, however, after hitting that mark on July 31, 2017.

Crude oil prices, which have fallen ~5.3% this year, and natural gas prices (UGAZ), which have fallen 13% in the same period, have impacted the movements of the energy sector and the Energy Select Sector SPDR ETF (XLE). XLE has fallen ~15% so far this year.

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SPY and market reaction

CLR stock and the energy sector ETF have both underperformed the SPDR S&P 500 ETF (SPY), which has risen ~9.8% so far this year.

But CLR stock rose ~5.7% on August 9, 2017, and markets seemed to have reacted to its increased production guidance for the year, and its aims to achieve cash flow neutrality in 2017.

In the next part, we’ll look at CLR’s implied volatility.

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