As we have all noticed at the pump, oil prices have been on a rise. This is good news for our oil stock Continental Resources, and we have seen a 13% rise since early January.
Continental Resources also reported earnings, beating expectations due to a one-time gain from hedge sales. This caused earnings to be reported at $1.14 a share, more than double the 55 cents expected. The surprising move Continental Resources did back in November where it sold all its oil and gas hedges, expecting a significant rebound, is where these prices came from. Oil has risen since then, but no significant rally has been seen – Although we can all witness the slow and steady rise that the gas price shows.
Continental also announced earlier in February that its reserves increased by 20% last year, which is a measure of growth.
We will continue to hold Continental Resources based on our belief that oil and gas prices will not sustain at current prices, and will continue to rise.