Continental Resources Business Practices

[HangryHippo]

Is something besides Hamm's divorce going on at Continental?

Continental Resources president resigns | News OK

Bott is the second executive to leave Continental in the past few months.

Rick Muncrief, the company’s former senior vice president of operations and resource development, left in May to become CEO of Tulsa-based WPX Energy.

[Pete]

"Left to pursue other opportunities" is usually a euphemism for being fired.

Bott was only there a couple of years -- his hiring clearly didn't work out for some reason.

CLR is still blowing and going.

[Bellaboo]

"Left to pursue other opportunities" is usually a euphemism for being fired.

Bott was only there a couple of years -- his hiring clearly didn't work out for some reason.

CLR is still blowing and going.

CLR had a 2 for 1 stock split today. Date of record was September 3.

[OkieNate]

CLR had a 2 for 1 stock split today. Date of record was September 3.

What is the reason or purpose for this?

[rlewis]

Companies split stock in order to keep the price of each share lower. It makes it more attractive to smaller investors. Once the price of a company's stock goes over $100, studies have shown that smaller investors tend to shy away from the purchase. Lower per share stock prices also make it cheaper for companies that give stock to their employees as compensation, and/or fund the retirement or pension plans with stock. Continental's stock had been hovering around $150/share for quite a while now.

[sooner88]

What is the reason or purpose for this?

By splitting the stock and lowering the stock price to ~$70 it broadens the range of investors for CLR and should help them keep their growth movement going.

[HangryHippo]

"Left to pursue other opportunities" is usually a euphemism for being fired.

Bott was only there a couple of years -- his hiring clearly didn't work out for some reason.

CLR is still blowing and going.

Weird. I saw where a few analysts had written reports saying he was doing a great job. He hadn't been there very long. Just seems odd.

[TheTravellers]

Revised company history may help oil baron avoid record divorce payout

Sleazy, if it's true.......

[turnpup]

Interesting stuff.

What must the monthly legal fees be like for both parties!

[Teo9969]

Revised company history may help oil baron avoid record divorce payout

Sleazy, if it's true.......

Sleazier still is a person who thinks they ought to be entitled to someone else's stock to whom they are clearly uncommitted, when the other person bought that stock did so 20 years before the marriage even began.

[Pete]

Continental just reported it's numbers as part of a job incentives plan.

As of June 2014, they had 689 employees in OKC.

They added 334 in the last 12 months alone up from 192 the previous year. Average salary for the 334 jobs was over $200K.

[Pete]

You could make a very good argument that 334 jobs at $200K is more valuable than 1,336 at $50K.

And if someone added 1,336 jobs at $50K in one year, everyone would be celebrating it as a watershed economic event.

Just a little perspective on what Continental has brought to OKC in their own, relatively quiet way.

[Plutonic Panda]

Continental forms joint venture with South Korean firm to develop Oklahoma acreage | News OK

[Plutonic Panda]

Oklahoma City-based Continental bets on higher oil prices | News OK

[DoctorTaco]

Oklahoma City-based Continental bets on higher oil prices | News OK

Selling your hedges is a bold move. For context, Devon has something like 40% of its production hedged. Goin 100% unhedged is working without a net.

A similar gamble on natural gas prices is what ultimately brought down Aubrey McClendon at CHK. Aubrey sold all of CHK's gas hedges going into the winter of 2011-2012, gambling that prices would come up. When that winter was warmer than average and gas prices not only stayed low but dropped, it killed CHK's profitability.

Whatever else people were mad at Aubrey about, had that gamble went the other way for him the man would still be at Chesapeake.

Let's hope that Harold Hamm has better luck with his gamble.

[BillyOcean]

onions!

[PhiAlpha]

Selling your hedges is a bold move. For context, Devon has something like 40% of its production hedged. Goin 100% unhedged is working without a net.

A similar gamble on natural gas prices is what ultimately brought down Aubrey McClendon at CHK. Aubrey sold all of CHK's gas hedges going into the winter of 2011-2012, gambling that prices would come up. When that winter was warmer than average and gas prices not only stayed low but dropped, it killed CHK's profitability.

Whatever else people were mad at Aubrey about, had that gamble went the other way for him the man would still be at Chesapeake.

Let's hope that Harold Hamm has better luck with his gamble.

Hamm is pretty conservative so I'm definitely more optimistic about this than when McClendon went naked on natural gas a few years ago. The fact that oil has much more global demand should help as well in this case.

[Pete]

Continental CEO Harold Hamm ordered to pay $995 million in divorce

Continental CEO Harold Hamm ordered to pay $995 million in divorce
Reuters
10 minutes ago

(Reuters) - An Oklahoma County judge has ordered oil magnate and Continental Resources Chief Executive Officer Harold Hamm to pay nearly $1 billion in a divorce judgment, according to a court filing made public on Monday.

Special Judge Howard Haralson found that Hamm should pay his ex-wife Sue Ann Hamm a total of $995.5 million, with about a third of the funds, or $322.7 million, to be paid by the end of the year, the filing says.

Hamm will then be required to pay the rest of the judgment, some $650 million, in installments worth at least $7 million per month, the filing says. Sue Ann Hamm has already been awarded around $25 million since the case was filed in 2012, the filing says.

To secure the judgment, Judge Haralson has placed a lien on 20 million shares of Continental stock, the filing says.

The ruling, which is subject to appeal, comes after a 9-1/2 week divorce trial ended last month.

(Reporting By Joshua Schneyer)

[Pete]

This is actually a pretty favorable ruling for Harold.

His net worth is about $20 billion and about $17 B was being contested.


Time to move on and build that tower!

[Teo9969]

I think Hamm must feel quite the relief at this point. I'd think Continental shareholders feel similarly.

Though he is a notoriously frugal man, I bet he will handsomely reward his legal staff. That's a hell of win.

[Pete]

He has to pay $323 million by the end of the year, then $7 million a month until he reaches the $995 million; that will give him 8 years to pay off the balance.

His net worth increased about $3 billion in just the last year. That equates to over $8 million a DAY.

[blangtang]

He gets to keep his hand tools, too. Good for him

[blangtang]

to add some context:

“In the last minutes of the trial,” Hamm “requested that he be awarded certain family pictures, a few books, guns, shotguns, some pictures, geode in quartz display and his hand tools,” according to the divorce papers.

Continental Chief Hamm Must Pay $972 Million in Divorce - Bloomberg

[Laramie]

He gets to keep his hand tools, too. Good for him

Please don't elaborate on that...

Harold Hamm will rebound; this is just a bump in the road, he has the foundation that will allow him to move on to bigger and better things.

[hoya]

Anna Nicole Smith style bigger and better?