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Continental Resources unwinds its crude hedges - takes $433MM gain, goes naked
Posted on 11/6/14 at 4:06 pm
Posted on 11/6/14 at 4:06 pm
Some balls on this guy
This post was edited on 11/6/14 at 4:07 pm
1
Posted on 11/6/14 at 4:14 pm to sneakytiger
Unhedged, but I wouldn't necessarily call this naked. They do own the oil after all.
Still, he's taking on someone with much deeper pockets. He does have a set.
Still, he's taking on someone with much deeper pockets. He does have a set.
Posted on 11/6/14 at 5:40 pm to Iowa Golfer
quote:
They do own the oil after all.
Which they will continue to incur costs to produce, transport and market if under a contractual supply commitment or the carry to park in storage. They are straight up long physical crude. Sounds nekkid to me
Posted on 11/6/14 at 6:02 pm to sneakytiger
He better be worried about those divorce proceedings coming up. Stupid arse should have gotten a prenup, she is about to be quite rich.
Posted on 11/6/14 at 6:26 pm to GREENHEAD22
I heard it's the most expensive divorce in history. Can you imagine?
Prenup would've helped...staying faithful would've also, but that's gotta be hard when you're worth 10 billion dollars
Here's to Harold Hamm-an American Badass
I actually had a job offer from them, seemed like a pretty good company.
Prenup would've helped...staying faithful would've also, but that's gotta be hard when you're worth 10 billion dollars
Here's to Harold Hamm-an American Badass
I actually had a job offer from them, seemed like a pretty good company.
Posted on 11/6/14 at 6:56 pm to TheIndulger
Yea he is like a modern day Sid Richardson, Hunt, etc. Just instead of it being TX its ND.
Diff and American Badass.
Diff and American Badass.
Posted on 11/6/14 at 7:46 pm to GREENHEAD22
Sounds like he went naked on his marriage too
Posted on 11/11/14 at 5:36 pm to sneakytiger
Posted on 11/11/14 at 5:47 pm to GREENHEAD22
That is an expensive pussy
Posted on 11/11/14 at 5:49 pm to GREENHEAD22
Exhibit A on why you get a prenup even if you arent worth 16B.
Ill be coming to the OT to be asking advice on breaking that to her.
Ill be coming to the OT to be asking advice on breaking that to her.
Posted on 11/11/14 at 6:41 pm to GREENHEAD22
quote:GOOD LUCK!
asking advice on breaking that to her.
Posted on 11/12/14 at 9:47 am to TigerTatorTots
She was an attorney for Continental as it grew, he's actually getting off pretty light from a % basis with no pre-nup.
Posted on 11/12/14 at 10:27 am to GREENHEAD22
A billion is nothing to laugh at, but he needs to hit his knees tonight giving thanks it wasn't much worse. Approx 8 percent of net worth is a lot better than 50.
Posted on 11/12/14 at 10:36 am to LSUFanHouston
And seriously---if you're worth that much, what difference does one of your billions make in the end? You'll still end up in a pine box with plenty of money to spare.
Posted on 11/12/14 at 6:34 pm to hungryone
Last place I worked at used to hedge their inventory (oil/fuel oil distributor) and I always thought it was a gamble hedged or un-hedged. Almost impossible to completely predict the market.
Posted on 11/12/14 at 10:17 pm to JasonL79
Hedging is about risk, you're not trying to predict or outsmart the market. It's an acknowledgment that you don't know.
Posted on 11/13/14 at 12:37 pm to cwill
quote:
Hedging is about risk, you're not trying to predict or outsmart the market. It's an acknowledgment that you don't know.
They had over $100 million in oil/fuel oil inventory and used it for risk purposes. If you hedge at a certain price (say $100) and market goes up ($110 so your inventory price goes up also) I don't see how you are protecting yourself. If you are hedging 100% of your inventory you just lost $10/bbl.
Posted on 11/13/14 at 2:19 pm to JasonL79
It's about securing a cash flow stream and locking in profits. The banks and PE firms that finance the independents will gladly give up that $10 of upside to ensure they don't lose $10+ on the wrong side.
Posted on 11/13/14 at 2:55 pm to sneakytiger
quote:
The banks and PE firms that finance the independents will gladly give up that $10 of upside to ensure they don't lose $10+ on the wrong side.
Makes sense especially with how the market has been in the last 6 months.
Posted on 11/14/14 at 9:30 am to sneakytiger
quote:
Which they will continue to incur costs to produce, transport and market
not to mention oil/gas is a depleting resource and add on top that he doesn't plan to add any new rigs while prices are low, sounds pretty risky. unless he plans to buy production to keep their numbers up?
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