NEW YORK (TheStreet) -- Continental Resources (CLR) shares are up 2.9% to $39.05 in early market trading on Tuesday after the independent crude and natural gas production company announced plans to cut capital expenditures by 41% in 2015.
The company now plans to spend about $2.7 billion while increasing production by as much as 20% next year.
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The decrease in spending is due to the recent precipitous fall in oil prices, although CEO Harold Hamm said that the U.S. oil industry will be able to "adjust" to and withstand the recent downturn.
"The oil and gas industry has lowered the cost of gasoline to consumers in this country. It's been good for America, this increase in supplies that we have here. We don't want to see it all go for naught," said Hamm in a statement.
Crude prices in the U.S. are expected to hover around $63 a barrel in 2015, according to the U.S. Energy Information Administration.
TheStreet Ratings team rates CONTINENTAL RESOURCES INC as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate CONTINENTAL RESOURCES INC (CLR) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, expanding profit margins and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk, disappointing return on equity and a generally disappointing performance in the stock itself."