{"id":51206,"date":"2022-06-15T03:11:37","date_gmt":"2022-06-15T03:11:37","guid":{"rendered":"https:\/\/harchi90.com\/founder-harold-hamm-offers-to-take-continental-private-at-25-bln-value\/"},"modified":"2022-06-15T03:11:37","modified_gmt":"2022-06-15T03:11:37","slug":"founder-harold-hamm-offers-to-take-continental-private-at-25-bln-value","status":"publish","type":"post","link":"https:\/\/harchi90.com\/founder-harold-hamm-offers-to-take-continental-private-at-25-bln-value\/","title":{"rendered":"Founder Harold Hamm offers to take Continental private at $ 25-bln value"},"content":{"rendered":"<div>\n<p data-testid=\"paragraph-0\" class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__large__nEccO body__base__22dCE body__large_body__FV5_X article-body__element__2p5pI\">June 14 (Reuters) &#8211; Continental Resources Inc (CLR.N) said on Tuesday it received an all-cash offer from billionaire-founder Harold Hamm&#8217;s family trust, a deal which could take the US shale producer private at a valuation of $ 25.41 billion.<\/p>\n<p data-testid=\"paragraph-1\" class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__large__nEccO body__base__22dCE body__large_body__FV5_X article-body__element__2p5pI\">If both sides reach an agreement, it would result in the most significant deal in the US shale sector since the surge in oil and natural gas prices this year caused by tightened supply, as the world emerges from the coronavirus pandemic and the dislocation of energy markets caused by Russia&#8217;s invasion of Ukraine.<\/p>\n<p data-testid=\"paragraph-2\" class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__large__nEccO body__base__22dCE body__large_body__FV5_X article-body__element__2p5pI\">Hamm, a legendary oilman who once called the Organization of the Petroleum Exporting Countries a &#8220;toothless tiger&#8221;, is offering $ 70 per share to those holding the approximately 17% of the company that his family does not already own.<\/p>\n<div class=\"registration-prompt__container__2jf5K registration-prompt__inline__2WDU- article-body__element__2p5pI article-body__inline-registration-prompt__1-N9W\">\n<div class=\"registration-prompt__text-content__o0YET\">\n<h5 data-testid=\"Heading\" class=\"text__text__1FZLe text__white__3r45t text__medium__1kbOh text__heading_5__2krbj heading__base__2T28j heading__heading_5__2A2g- registration-prompt__heading__3fq-h\">Register now for FREE unlimited access to Reuters.com<\/h5>\n<p><button data-testid=\"Button\" class=\"button__button__2Ecqi button__secondary__18moI button__round__1nYLA text-button__container__3q3zX registration-prompt__button-text__3kTtQ\" type=\"button\"><\/p>\n<p><span data-testid=\"Text\" class=\"text__text__1FZLe text__inherit-color__3208F text__bold__2-8Kc text__default__UPMUu text-button__medium__113uZ\">Register<\/span><\/p>\n<p><\/button><\/div>\n<\/div>\n<p data-testid=\"paragraph-3\" class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__large__nEccO body__base__22dCE body__large_body__FV5_X article-body__element__2p5pI\">The offer represents a nearly 9% premium over Continental&#8217;s closing price on Monday, but is below the level the producer was trading at as recently as last Thursday.<\/p>\n<p data-testid=\"paragraph-4\" class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__large__nEccO body__base__22dCE body__large_body__FV5_X article-body__element__2p5pI\">Continental&#8217;s shares jumped as much as 17% to $ 75.49 to their highest level since September 2014, and while they came off a touch by early-afternoon the stock was still trading at a level indicating investors believe a higher offer could be forthcoming.<\/p>\n<p data-testid=\"paragraph-5\" class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__large__nEccO body__base__22dCE body__large_body__FV5_X article-body__element__2p5pI\">Smead Capital Management, the largest shareholder after the Hamm family with around 2% of Continental, said in a statement it believed the offer price &#8220;undervalues&#8221; the shale producer.<\/p>\n<p data-testid=\"paragraph-6\" class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__large__nEccO body__base__22dCE body__large_body__FV5_X article-body__element__2p5pI\">&#8220;At $ 110 oil, it&#8217;s worth $ 110 (per share) or more. At $ 120 (oil), it begins to look like stealing,&#8221; said Cole Smead, president and portfolio manager at Smead Capital.  US crude futures were trading at $ 120.66 per barrel on Tuesday.<\/p>\n<p data-testid=\"paragraph-7\" class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__large__nEccO body__base__22dCE body__large_body__FV5_X article-body__element__2p5pI\">Continental said the proposal was an indication of interest from the Hamm family trust, and it had not yet fully evaluated the offer.  In a letter to the board disclosed in the same filing, Hamm&#8217;s family trust said the deal will be structured as a tender offer and that there were no financing issues.<\/p>\n<p data-testid=\"paragraph-8\" class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__large__nEccO body__base__22dCE body__large_body__FV5_X article-body__element__2p5pI\">Andrew Byrne, executive director of company research at S&#038;P Global Commodity Insights, said it was uncertain whether minority owners would be given an option to roll their stake into the private company, instead of taking cash.<\/p>\n<h2 data-testid=\"Heading\" class=\"text__text__1FZLe text__dark-grey__3Ml43 text__medium__1kbOh text__heading_5__2krbj heading__base__2T28j heading__heading_5__2A2g-\">FREEDOM<\/h2>\n<p data-testid=\"paragraph-9\" class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__large__nEccO body__base__22dCE body__large_body__FV5_X article-body__element__2p5pI\">Hamm founded Continental as Shelly Dean Oil Company in 1967, and ran it as a private company until 2007.<\/p>\n<p data-testid=\"paragraph-10\" class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__large__nEccO body__base__22dCE body__large_body__FV5_X article-body__element__2p5pI\">In a letter to employees detailing his go-private offer, Hamm lamented the public markets have not supported the oil and gas industry and limited its growth, especially since the pandemic.<\/p>\n<p data-testid=\"paragraph-11\" class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__large__nEccO body__base__22dCE body__large_body__FV5_X article-body__element__2p5pI\">&#8220;We have determined that the opportunity today is with private companies who have the freedom to operate and are not limited by public markets,&#8221; Hamm said in the letter.<\/p>\n<p data-testid=\"paragraph-12\" class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__large__nEccO body__base__22dCE body__large_body__FV5_X article-body__element__2p5pI\">Both US crude and natural gas prices this year have hit their highest levels since 2008. The high prices have been a boon to the shale industry, and Continental has used this backdrop to expand its operations.<\/p>\n<p data-testid=\"paragraph-13\" class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__large__nEccO body__base__22dCE body__large_body__FV5_X article-body__element__2p5pI\">In December, it entered the Permian Basin for the first time, buying acreage from Pioneer Natural Resources (PXD.N).  Meanwhile, it bought land in March from Chesapeake Energy (CHK.O) to bolster its footprint in the Powder River Basin.<\/p>\n<p data-testid=\"paragraph-14\" class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__large__nEccO body__base__22dCE body__large_body__FV5_X article-body__element__2p5pI\">Continental said it would form a special committee of independent directors and hire advisors to consider Hamm&#8217;s proposal.<\/p>\n<p data-testid=\"paragraph-15\" class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__large__nEccO body__base__22dCE body__large_body__FV5_X article-body__element__2p5pI\">If the proposal is rejected, the Hamm family will continue as long-term shareholders and would not push for any strategic options, according to Hamm&#8217;s offer letter.<\/p>\n<p data-testid=\"paragraph-16\" class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__large__nEccO body__base__22dCE body__large_body__FV5_X article-body__element__2p5pI\">Hamm&#8217;s family trust is being advised by Intrepid Partners and Vinson &#038; Elkins LLP.<\/p>\n<div class=\"registration-prompt__container__2jf5K registration-prompt__inline__2WDU- article-body__element__2p5pI\">\n<div class=\"registration-prompt__text-content__o0YET\">\n<h5 data-testid=\"Heading\" class=\"text__text__1FZLe text__white__3r45t text__medium__1kbOh text__heading_5__2krbj heading__base__2T28j heading__heading_5__2A2g- registration-prompt__heading__3fq-h\">Register now for FREE unlimited access to Reuters.com<\/h5>\n<p><button data-testid=\"Button\" class=\"button__button__2Ecqi button__secondary__18moI button__round__1nYLA text-button__container__3q3zX registration-prompt__button-text__3kTtQ\" type=\"button\"><\/p>\n<p><span data-testid=\"Text\" class=\"text__text__1FZLe text__inherit-color__3208F text__bold__2-8Kc text__default__UPMUu text-button__medium__113uZ\">Register<\/span><\/p>\n<p><\/button><\/div>\n<\/div>\n<p><span data-testid=\"Text\" class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__default__UPMUu sign-off__text__PU3Aj\">Reporting by Arunima Kumar and Shariq Khan in Bengaluru and David French in New York;  Editing by Arun Koyyur and Nick Zieminski<\/span><\/p>\n<p data-testid=\"Body\" class=\"text__text__1FZLe text__dark-grey__3Ml43 text__regular__2N1Xr text__large__nEccO body__base__22dCE body__large_body__FV5_X article-body__element__2p5pI\">Our Standards: The Thomson Reuters Trust Principles.<\/p>\n<\/div>\n<p>    .<\/p>\n","protected":false},"excerpt":{"rendered":"<p>June 14 (Reuters) &#8211; Continental Resources Inc (CLR.N) said on Tuesday it received an all-cash offer from billionaire-founder Harold Hamm&#8217;s family trust, a deal which could take the US shale producer private at a valuation of $ 25.41 billion. If both sides reach an agreement, it would result in the most significant deal in the &hellip;<\/p>\n<p class=\"read-more\"> <a class=\"\" href=\"https:\/\/harchi90.com\/founder-harold-hamm-offers-to-take-continental-private-at-25-bln-value\/\"> <span class=\"screen-reader-text\">Founder Harold Hamm offers to take Continental private at $ 25-bln value<\/span> Read More &raquo;<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"default","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","spay_email":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true},"categories":[8],"tags":[56,3107,429,430,25,26,552,28,3549,433,2300,2301,32,33,8322,17992,930,1355,931,932,258,1602,933,3552,735,64,3106,44,5584,45,2531,3554,2307,2536,87,511,1603,8326,48,285,75,57],"jetpack_featured_media_url":"","jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"fifu_image_url":"https:\/\/www.reuters.com\/resizer\/8yYp6Jpco0dj7KstmpGBOQkOXrs=\/1200x628\/filters:quality(80):focal(2647x1002:0x0)\/cloudfront-us-east-2.images.arcpublishing.com\/reuters\/PCCEYLU5EFJTPEJU3KQ5BYFRJQ.jpg","_links":{"self":[{"href":"https:\/\/harchi90.com\/wp-json\/wp\/v2\/posts\/51206"}],"collection":[{"href":"https:\/\/harchi90.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/harchi90.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/harchi90.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/harchi90.com\/wp-json\/wp\/v2\/comments?post=51206"}],"version-history":[{"count":0,"href":"https:\/\/harchi90.com\/wp-json\/wp\/v2\/posts\/51206\/revisions"}],"wp:attachment":[{"href":"https:\/\/harchi90.com\/wp-json\/wp\/v2\/media?parent=51206"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/harchi90.com\/wp-json\/wp\/v2\/categories?post=51206"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/harchi90.com\/wp-json\/wp\/v2\/tags?post=51206"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}