Continental Resources Takes Daring Move Despite Commodity Price Risk

This article was originally published by TheStreet on November 15, 2014.

By Sarfaraz A. Khan. Research Asst. Omar E.

NEW YORK ( TheStreet) -- As oil prices continue to deteriorate, with the benchmark American WTI and European Brent crudes dropping to their lowest four-year levels on Thursday,Continental Resources (CLR) has done the unthinkable.  The Oklahoma-based oil company is  selling all of its crude oil hedges through 2016, making the company even more exposed to commodity price risk.

How could Continental even consider such a move?

Continental Resources: Sell-On-The-News Or Buy-On-The-Dip?

This article was originally published by Seeking Alpha on September 22, 2014.

By Sarfaraz A. Khan

Summary: The shares of Continental Resources slumped last week.The company announced an uptake in drilling costs, cut the top end of its production guidance.The increase in its core Bakken reserve base was also not that great. That said, Continental Resources is not the same E&P company as two years ago.

EOG Resources: Should You Sell The Best American Shale Oil Stock At 52-Week High?

This article was originally published by Seeking Alpha on July 22, 2014.

Summary: EOG Resources is currently trading close to its 52-week high. EOG Resources has four key strengths that sets it apart from its competitors. Let's take a look at its production growth plans and valuation.

The shares of EOG Resources EOG have rallied this year and are currently trading close to its 52-week high of $118.89. Does this mean that investors should cash out on their investments? To find out, let's dig deeper.

EOG Resources is one of the leading independent energy companies of the U.S, with total estimated net proved reserves of 2.1 billion barrels of oil equivalents. The company's growth has been driven by the shale revolution.

Focus on Oil

What sets EOG Resources apart from other energy companies is that firstly, unlike some of its peers such as Devon Energy DVN and Chesapeake Energy CHK, whose growth has been driven by the shale gas boom, EOG Resources has largely focused on shale oil. As a result, EOG Resources has been immune from the downward trend in the gas industry coming from the glut in prices which nearly drove Chesapeake to bankruptcy and forced the transformation of Devon Energy.

Diverse Portfolio

Secondly, there aren't a lot of shale-oil focused energy companies out there whose reserve portfolio is as diversified as EOG Resources. Most of the companies in this sector are mainly producing oil from a one or two shale plays. For instance, Continental Resources CLR, another unconventional oil producer, is a  …. Read full article at Seeking Alpha.

     

All Hail Whiting Petroleum, the New King of the Bakken

This article was originally published by TheStreet on July 14, 2014. 

By Sarfaraz A. Khan

NEW YORK (TheStreet) --  Whiting Petroleum (WLL_) plans to buy peer Kodiak Oil & Gas(KOG_), which will make it the king of the prolific Bakken Shale formation.

The acquisition will boost Whiting's production and reserves, which is why the company believes the deal will have a positive impact on cash flow, earnings and production per share starting next year.

The deal shows Whiting's resolve to play a central role in the rise of the Bakken formation as North America's leading shale field in terms of barrels-per-well.

Kodiak Oil and Gas, like Whiting, is a Rocky Mountain-focused exploration and production company. The deal is valued at $6 billion.

Continental Resources and EOG Are the Big Winners of the Shale Boom

This article was originally published by TheStreet on July 10, 2014. 

By Sarfaraz A. Khan

NEW YORK (TheStreet) -- The U.S. is on track to become the biggest oil producer on the planet, surpassing Russia and Saudi Arabia thanks to the shale revolution.

Oil majors Exxon Mobil (XOM_) and Chevron (CVX_) have failed to capitalize on the shale boom, playing second fiddle to their relatively smaller exploration and production peers Devon Energy (DVN_), Chesapeake Energy (CHK_), Continental Resources (CLR_) and EOG Resources (EOG_).

But despite playing a major role in the shale boom, natural gas-focused Devon and Chesapeake and oil-focused Continental and EOG aren't profiting equally. Right now Continental and EOG are the winners.

This Revamped Energy Firm Is a Buy

From The Motley Fool. June 8, 2013

By Sarfaraz A. Khan
Research Assistant: G. Yousuf

Hess' (NYSE: HES), four-month battle with billionaire Paul Singer’s Elliott Management has finally come to an end with the most dramatic change in the oil company’s board in its 80-year history. A total of nine of the 14 board members are being replaced with new ones, which also includes three out of five of Paul Singer’s nominees.  

In return, Elliot Management, the second-largest shareholder in Hess, will