Continental Resources Business Practices

[onthestrip]

Calling Midtowner...why and how does a file get destroyed?

From the Reuters article:
In 1998, Harold Hamm filed for divorce and demanded that Sue Ann undergo a psychological evaluation. He later withdrew the divorce petition and the case file was ordered destroyed this year, on February 13, according to Oklahoma court records. What prompted the destruction of the file is unclear. In 2005, Sue Ann Hamm subsequently filed for divorce; that case also was dropped.

[Pete]

And regarding them possibly building a new tower, I'm sure the uncertainty in all of this just means they don't want to get into a rush to launch some huge project.

I was just told by someone in the know they actually have some room to grow in their current building, although that would last long given their current growth trajectory. And of course, it takes 3-5 years to get a new urban down open for business, unless they've already started some of the design and programming work.

[MustangGT]

I can easily see her demanding and getting 50% of his stock which would make her just as powerful in the company as he is. A company such as this cannot answer to two masters. Somebody has to have the ultimate and final say so.

[Bellaboo]

I can easily see her demanding and getting 50% of his stock which would make her just as powerful in the company as he is. A company such as this cannot answer to two masters. Somebody has to have the ultimate and final say so.

I don't think so. She got married to him many years after his company was established. She might gain an X factor from that point on, but his gain may be an X factor of 100.

I have a friend who had this scenario - He got married late in life, as an example lets say he had $10,000 in his 401k when he got married. Lets say he got divorced when it reached $20,000. She wanted half, $10,000, but only got $4,000, due to the fact that he had a larger percent gain due to owning a larger part of the 401k (at the point of marriage) that the final principal grew to. He walked away with $16,000.

[MustangGT]

Yes no maybe so. Your friends low end divorce is not even in the same league. When massive amounts of money are concerned what works for the little people many times goes out the window. It is reported that the companies stock price surged 500% since they got married. Also she has held executive positions within the company. Not so simple now is it?

[Bellaboo]

Yes no maybe so. Your friends low end divorce is not even in the same league. When massive amounts of money are concerned what works for the little people many times goes out the window. It is reported that the companies stock price surged 500% since they got married. Also she has held executive positions within the company. Not so simple now is it?

This was just an example.

Don't think she was the CEO or Chairman of the Board, do you ?

[Rover]

I am sure she got paid fairly for her work with the company. What she is due as the spouse is not based on her work. It is assumed she was already compensated for those contributions towards the company's growth. In fact, it might even hurt her cause.

[zookeeper]

I am sure she got paid fairly for her work with the company. What she is due as the spouse is not based on her work. It is assumed she was already compensated for those contributions towards the company's growth. In fact, it might even hurt her cause.

Couldn't the same be said of Harold?

[Teo9969]

Couldn't the same be said of Harold?

No, because he actually owned the shares before the company's growth and before the marriage.

I'm sure that my opinion is at odds with the law, in which case the law is ridiculous and wrong, but it is my not so humble opinion that there is ZERO argument to be made for her receiving any percentage of the *original* stock owned by Harold, even in the absence of a prenup. It is one thing if he liquidated, borrowed against, or otherwise made use of any stock as a monetary instrument during the course of their marriage, but the amount of shares which have never been touched ought to remain his under all circumstances. Any stocks he purchased, borrowed against or made use of as monetary instruments during the marriage ought to be divided evenly.

[Rover]

Couldn't the same be said of Harold?

Yes on earnings. No on the right to the equity.

[zookeeper]

A video piece from ABC News on Saturday night. Sue Ann Hamm could become the wealthiest woman in the United States - richer than Oprah Winfrey.

[Teo9969]

Interesting, that video says she "might win $3B". If that's 100% CLR shares (which I imagine CLR shares would count for 97.5%+) then that equates to ~20% of the companies shares, knocking Hamm from 68% to ~48%.

If the *most* she can win is $3B then I don't think OKC nor CLR have anything to worry about. 48% is still a gargantuan holding in a public company. No other one entity is likely to approach even a quarter of the holding that Hamm would own, other than Sue Ann, but even she wouldn't be at half of Hamm's amount.

[blangtang]

Its been interesting following Continental as a company, they are really reaping the benefits of being sort of the first mover into the Bakken, and with that they've seen tremendous growth over the last 5 years or so as the Bakken has rapidly grown to account for almost 10 % of all the oil produced in the US. Its really an under the radar story...Moving the HQ to OKC is a big part of it too.

But on another note, I've seen way too much tabloid level media in the last week about this company, of course its about the divorce/$$$/TheNewOprah, blah, blah, blah. Just sickening what gets covered...

[ou48A]

Continental Resources to sell $1B in notes - Yahoo! Finance
OKLAHOMA CITY (AP) -- Continental Resources Inc. said Tuesday that it plans to sell $1 billion of new senior notes in a private offering.

The Oklahoma City-based oil and gas producer said it plans to use the net proceeds from the offering to repay some of the debt under its revolving credit facility and for general corporate purposes.

[HangryHippo]

Doesn't this belong in the Mystery Tower thread? ;-)

Oh, Sid. Are you going to be crushed when a new tower doesn't happen?

[Praedura]

I'm not worried.

Nor am I.

[ou48A]

Continental Resources to sell $1B in notes - Yahoo! Finance
OKLAHOMA CITY (AP) -- Continental Resources Inc. said Tuesday that it plans to sell $1 billion of new senior notes in a private offering.

The Oklahoma City-based oil and gas producer said it plans to use the net proceeds from the offering to repay some of the debt under its revolving credit facility and for general corporate purposes.

There are now reports that the figure is actually 1.5 billion and not the 1 billion that was previously posted.

Continental Resources Announces Pricing of $1.5 Billion Offering of New Senior Notes due 2023 - Yahoo! Finance

Continental Resources Announces Pricing of $1.5 Billion Offering of New Senior Notes due 2023

[HangryHippo]

Any word on how long the divorce settlement might take?

[Bellaboo]

Any word on how long the divorce settlement might take?

They've been working at it since 1998.

[tillyato]

Not sure if I agree with it, but an interesting take on CLR and the Bakken:

Bakken Boom Destined To Fizzle? - Seeking Alpha

[HangryHippo]

Not sure if I agree with it, but an interesting take on CLR and the Bakken:

Bakken Boom Destined To Fizzle? - Seeking Alpha

60% of Continental's acreage is junk? Hmm. Interesting, indeed.

[ou48A]

Not sure if I agree with it, but an interesting take on CLR and the Bakken:

Bakken Boom Destined To Fizzle? - Seeking Alpha

The author says “There is very little gas gathering in the Bakken and little profit in it compared to oil sales.”
Gas gathering capacity is growing…. but we have known about this problem for very long time. Flaring is being reduced but many of the Bakken wells do not produce that much NG.
If the CLR “outlook is fragile” then virtually all other similar companies are fragile too IMO.
The author says “I'm not going to comment on Continental's new Oklahoma Woodford shale program.”
But to be fair and honest an analyst would need to look at CLR’s new Oklahoma Woodford shale program.

[OKCRT]

The author says “There is very little gas gathering in the Bakken and little profit in it compared to oil sales.”
Gas gathering capacity is growing…. but we have known about this problem for very long time. Flaring is being reduced but many of the Bakken wells do not produce that much NG.
If the CLR “outlook is fragile” then virtually all other similar companies are fragile too IMO.
The author says “I'm not going to comment on Continental's new Oklahoma Woodford shale program.”
But to be fair and honest an analyst would need to look at CLR’s new Oklahoma Woodford shale program.

That's right and when CLR builds that new tower downtown that author will have to eat his words.

[Bellaboo]

I read a lot of the 'Seeking Alpha' articles on Mreit's. I notice that there are always comments disputing the accuracy of the articles, and the authors come back in and comment with corrections to the articles....not sure how reliable they are.

On further edit, they have removed the article.....

[ljbab728]

More good new for Continental.

North Dakota, Montana's oil potential revised even higher | News OK

The new oil number is 49 times more than the geological survey's 1995 forecast of 151 million barrels of recoverable oil. By 2008, the geological survey revised its estimate to 3.7 billion barrels.
The geological survey attributed much of its most recent increase to efforts by Continental Resources and other producers to recover oil from the Three Forks Formation, which lies beneath the Bakken in the Williston Basin of North Dakota and Montana.

Continental Resources was one of the first developers in the area and now has a stake in about 20 percent of the wells drilled so far. The company has led the effort to develop the deeper rock layers in the area.
Continental CEO Harold Hamm said he still thinks the government estimates are too low, but that he is pleased with the revision.