Continental Resources’ stock drivers
As we saw before, Continental Resources stock has fallen almost 19% year-over-year. On a year-to-date basis, CLR stock has fallen 8.3%.
Recent trends in CLR stock
Continental Resources stock has been on an uptrend, mirroring crude oil price movements. However, the above graph also indicates that Continental stock has had lower returns than WTI (West Texas Intermediate) since the beginning of the year. That’s likely because the stock is under pressure due to high debt levels. As we’ve already seen in this series, CLR’s 3Q17 net debt was $6.6 billion. However, the company has been taking various steps to improve that debt position. Read Parts 1 and 2 to know more.
CLR stock has outperformed the broader energy ETF (XLE), which has fallen 9.2% since the beginning of the year.
However, when compared with the broader market, represented by the S&P 500 ETF (SPY) (SPX-INDEX), Continental Resources has underperformed. Since the beginning of this year, SPY has risen 18%. The energy sector makes up 6% of SPY.
Commenting on expectations for 2018, CLR’s management said in its 3Q17 earnings conference, “And based on improved well productivity, our low cost structure and exceptional margins, we are seeing continued improvement and anticipate strong results in 2018 as we continue to prioritize returns.”