Organization and Nature of Business

6 Months Ended

Jun. 30, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization and Nature of Business

Organization and Nature of Business

Nature of Business

Continental Resources, Inc. (the “Company”) was formed in 1967 and is incorporated under the laws of the State of Oklahoma. The Company’s principal business is the exploration, development, management, and production of crude oil and natural gas and associated products with properties primarily located in four leading basins in the United States – the Bakken field of North Dakota and Montana, the Anadarko Basin of Oklahoma, the Permian Basin of Texas, and the Powder River Basin of Wyoming. Additionally, the Company pursues the acquisition and management of perpetually owned minerals located in certain of its key operating areas. For the six months ended June 30, 2022, crude oil accounted for 51% of the Company’s total production and 71% of its crude oil, natural gas, and natural gas liquids revenues.    

Recent Developments

On June 14, 2022, the Company’s Board of Directors (the “Board”) received a non-binding proposal from Harold G. Hamm, on behalf of himself, the Harold G. Hamm Trust and certain trusts established for the benefit of Mr. Hamm’s family members (collectively, the “Hamm Family”) to acquire for cash all of the outstanding shares of common stock of the Company, other than shares owned by the Hamm Family and shares underlying unvested equity awards issued pursuant to the Company's long-term incentive plans, for a purchase price of $70.00 per share.

The Board has formed a special committee of independent directors to evaluate and consider the Hamm Family’s proposal. The special committee has hired independent legal and financial advisors to assist it in this process, and such evaluation is ongoing.

The Hamm Family’s proposal constitutes only an indication of interest by the Hamm Family and does not constitute a binding commitment with respect to the proposed transaction or any other transaction. No agreement, arrangement or understanding between the Company and the Hamm Family relating to any proposed transaction will be created unless definitive documentation is executed and delivered by the Hamm Family, the Company, and all other appropriate parties. No assurance can be given that the Hamm Family’s proposal will result in a transaction occurring, its timing, or ultimate terms.