CLR - Continental Resources: High Capex Excessive Debt And Declining Oil Prices To Push Share Price Lower
Continental Resources (CLR) is a North American oil and gas production company. It trades under the ticker symbol CLR. I believe Continental Resources represents a short opportunity as a play on lower energy prices. The company is in a more vulnerable financial position than appreciated by the market.
Continental's cash flow is negatively affected by significant capital expenditures because of well depletion as Jim Chanos has pointed out. Shale companies need to continue to invest in new drilling to even maintain current production. Therefore, investing in drilling new wells is more of a variable-type cost,