CLR - Continental sinks as planned spending increase exceeds oil output growth

Continental Resources (CLR -8.7%) plunge as much as 13%, as investors frown on the company's plans to raise FY 2022 spending at roughly the double the rate of its oil production growth. The company will raise spending this year by 47% to $2.3B, higher than the 39% growth expected by analysts, according to Bloomberg data, while oil production rises by an anticipated 24%, in line with expectations, with full-year free cash flow of $2.9B. Continental's guidance "disappoints," Citi's Scott Gruber said, according to Bloomberg, as greater capex and lower volumes "could weigh on shares," while analysts at Tudor Pickering Holt called it a "disappointing outlook." Truist analyst Neal Dingmann says the company's free cash flow guidance is less than expected, Bloomberg reports, but investors should "take advantage of any share price pressure, as we view the company's shareholder return strategy as attractive." Prior to Tuesday's move, Continental Resources shares had

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Continental sinks as planned spending increase exceeds oil output growth