Shale producer Continental Resources will merge with Omega Acquisition, an Oklahoma corporation owned by Continental's founder, Harold Hamm.
The company, one of the US’ largest independent oil companies, will become private. The deal is valued at $4.3bn.
Oklahoma-based Continental is the most sizeable oil and gas producer, and pioneered hydraulic fracturing in the Bakken shale basin of North Dakota. It also operates in Oklahoma’s Anadarko Basin. Founded in 1967, it was private until 2007.
The deal, which does not require a shareholder vote because of the size of the Hamm family’s stake, is considered the most significant in the US shale sector since oil and gas prices rose after being roiled by Russia’s invasion of Ukraine and a surging economy following the pandemic.
Omega will offer to purchase all the outstanding shares of Continental's common stock at $74.28 per share that are not already owned by the Hamm family or rollover shares. Based on the shares outstanding as of October 12, 2022, the tender offer would be for some 58mn shares of common stock.
The offer price includes $0.28 in lieu of Continental's anticipated dividend for the third quarter of 2022.
Continental will not pay dividends between the signing and closing of the transaction.

 

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