Global Hunter Securities Upgrades Continental Resources (CLR) to Buy
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Price: $74.27 --0%
Rating Summary:
19 Buy, 24 Hold, 5 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 18 | Down: 16 | New: 9
Rating Summary:
19 Buy, 24 Hold, 5 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 18 | Down: 16 | New: 9
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Global Hunter Securities upgraded Continental Resources (NYSE: CLR) from Accumualte to Buy with a price target of $78.00.
The firm stats, "We are upgrading to a Buy rating from Accumulate while maintaining a $78 price target based on 13.0x and 9.7x our 2011 and 2012 EBITDA estimates, respectively. Despite a less than stellar quarter, CLR remains the most efficient operator in the Bakken by a large margin. For 2Q, CLR missed our production, earnings and EBITDA but exited July at 62,000 boepd. We were forecasting 58,710 boepd for 3Q. We had 33% growth modeled on lower productivity wells versus previous guidance of 35%-37%. Our numbers have moved up to 37% with better wells going along with corporate guidance of 36%-39%. We were looking for 414 MMboe of proved mid-year reserves and management posted 421 MMboe. Bakken EURs were 518 Mboe (514 Mboe GHS) and they jacked them up to 603 Mboe based on historic performance and 24 frac stages. Now CLR is going to 30 frac stages so expectations are for EURs to continue to climb. Just maintaining our 4Q11 production run rate would equate to 20% YOY growth in 2012 but with another $2B budget, growth could be as impressive next year as this year."
For more ratings news on Continental Resources click here and for the rating history of Continental Resources click here.
Shares of Continental Resources closed at $56.15 yesterday.
The firm stats, "We are upgrading to a Buy rating from Accumulate while maintaining a $78 price target based on 13.0x and 9.7x our 2011 and 2012 EBITDA estimates, respectively. Despite a less than stellar quarter, CLR remains the most efficient operator in the Bakken by a large margin. For 2Q, CLR missed our production, earnings and EBITDA but exited July at 62,000 boepd. We were forecasting 58,710 boepd for 3Q. We had 33% growth modeled on lower productivity wells versus previous guidance of 35%-37%. Our numbers have moved up to 37% with better wells going along with corporate guidance of 36%-39%. We were looking for 414 MMboe of proved mid-year reserves and management posted 421 MMboe. Bakken EURs were 518 Mboe (514 Mboe GHS) and they jacked them up to 603 Mboe based on historic performance and 24 frac stages. Now CLR is going to 30 frac stages so expectations are for EURs to continue to climb. Just maintaining our 4Q11 production run rate would equate to 20% YOY growth in 2012 but with another $2B budget, growth could be as impressive next year as this year."
For more ratings news on Continental Resources click here and for the rating history of Continental Resources click here.
Shares of Continental Resources closed at $56.15 yesterday.
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