Buy Continental Resources As It Ups Capex Again

After reporting earnings on Wednesday night, Continental Resources (CLR) moved up slightly as investors battled over the huge production gains and the spending increases. For some reason the market was disappointed with a forecast increase in capital spending while oil approaches $94 (not to mention that Brent crude exceeds $112).

The company is an oil and natural gas exploration and production company focused on the Bakken and Anadarko areas.

The market remains very focused on reduced spending in the domestic energy production sector that any added spending is seen as negative. SandRidge Energy (SD) encountered this very problem the previous week. Though natural gas still struggles around $3, the market is missing that oil prices remain strong. Why wouldn't an oil exploration company attempt to produce more oil at these prices?

Read the full article at Seeking Alpha.

Disclosure: No positions. Please review the disclaimer page for more details. 


Popular posts from this blog

Kohl's: Worth $75 Without Financial Engineering

Stat of the Day: Leading Indicators Jump Again

Out Fox The $treet - December 13, 2019