Continental’s Solid Q2 Overshadowed by Harold Hamm’s Take-private Offer

An analyst said Harold Hamm’s $4.1 billion offer to Continental Resources private remains the “elephant in the room” for the company.

Continental’s Solid Q2 Overshadowed by Harold Hamm’s Take-private Offer

Oklahoma City-based Continental will not hold an earnings call for its second-quarter results and published a pared-down version of its investor presentation compared with previous quarters. (Source: JHVEPhoto / Shutterstock.com)

Despite solid second-quarter results that include $1.23 billion in free cash flow and a 4.6x increase in production in the Powder River Basin, Continental Resources Inc.’s future remains in limbo as an internal committee weighs Harold Hamm’s offer to take the company private.

After spending about $99.9 million on share repurchases in the first quarter, Continental announced in its earnings release that it made no additional buybacks in the second quarter following a nonbinding offer by Hamm and associated entities that would purchase the company’s outstanding stock for $4.1 billion. The company also reported closing a $197 million strategic leasehold acquisition it agreed to in April to expand its operations in the Permian Basin.

Oklahoma City-based Continental will not hold an earnings call for its second-quarter results and published a pared-down version of its investor presentation compared with previous quarters.

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Darren Barbee

Darren Barbee is senior editor for Oil and Gas Investor magazine.