OKLAHOMA CITY, Aug. 6, 2018 /PRNewswire/ -- Continental
Resources, Inc. (NYSE: CLR) (The "Company") today announced that
Franco-Nevada (NYSE & TSX: FNV) has agreed to pay approximately
$220 million for a stake in a
newly-formed minerals subsidiary. In accordance with the deal
terms, the Company will receive the proceeds at closing, offsetting
the majority of previously incurred capital expenditures. The
amount to be received by the Company at closing is subject to
adjustment under the terms of the transaction documents.
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In addition, the parties have also committed, subject to
satisfaction of agreed upon development thresholds, to spend up to
a combined $125 million per year over
the next three years to acquire additional minerals through the
newly-formed subsidiary. With a carry component on capital
acquisition costs, the Company is to fund 20% of future mineral
acquisitions. The Company will be entitled to between 25% and 50%
of total revenues generated by the minerals subsidiary based upon
performance relative to certain predetermined targets.
The Company subsidiary and Franco-Nevada have executed
definitive documents evidencing the aforementioned divestiture and
the formation of the strategic relationship, subject to customary
closing conditions, to acquire minerals in the SCOOP and STACK
plays of Oklahoma, primarily in
areas operated by the Company. These areas offer prolific well
results, excellent economics, proximity to infrastructure and
future upside via stacked hydrocarbon-bearing horizons.
"We could not be more pleased to team up with a leading royalty
corporation in Franco-Nevada, who has a vast understanding of the
value of mineral ownership as evidenced by their long track-record
of acquiring assets globally," said Harold
Hamm, Chairman and Chief Executive Officer. "We are pleased
to announce yet another growth vehicle to Continental within our
core business, complementing our existing assets and capturing
incremental value for Continental shareholders while also applying
proceeds for further debt reduction."
"Collaborating with Continental to purchase minerals is a new
business development opportunity for Franco-Nevada," stated
David Harquail, Chief Executive
Officer of Franco-Nevada. "We are pleased to be able to work with
this best-in-class operator to further strengthen Franco-Nevada's
overall portfolio."
RBC Capital Markets and Vinson & Elkins LLP acted as
exclusive financial and legal advisors, respectively, to the
Company.
About Continental Resources
Continental Resources (NYSE: CLR) is a top 10 independent oil
producer in the U.S. Lower 48 and a leader in America's energy
renaissance. Based in Oklahoma
City, Continental is the largest leaseholder and the largest
producer in the nation's premier oil field, the Bakken play of
North Dakota and Montana. The Company also has significant
positions in Oklahoma, including
its SCOOP Woodford and SCOOP Springer discoveries and the STACK
plays. With a focus on the exploration and production of oil,
Continental has unlocked the technology and resources vital to
American energy independence and our nation's leadership in the new
world oil market. In 2018, the Company will celebrate 51 years of
operations. For more information, please visit www.CLR.com.
About Franco-Nevada
Franco-Nevada Corporation (NYSE & TSX: FNV) is the leading
gold-focused royalty and stream company with a current market
capitalization of approximately $14
billion. Based in Toronto,
Canada, Franco-Nevada targets to have 80% of its business in
precious metals and up to 20% of its business in non-precious
resources including oil & gas. Its business model provides
investors with commodity price and exploration optionality while
limiting exposure to many of the risks of operating companies.
Franco-Nevada is the gold
investment that works. For more information, please visit
www.franco-nevada.com.
Investor
Contact:
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Media
Contact:
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Rory Sabino
|
Kristin
Thomas
|
Vice President,
Investor Relations
|
Senior Vice
President, Public Relations
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405-234-9620
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405-234-9480
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Rory.Sabino@CLR.com
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Kristin.Thomas@CLR.com
|
|
|
Lucy
Guttenberger
|
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Senior Investor
Relations Associate
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405-774-5878
|
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Lucy.Guttenberger@CLR.com
|
|
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SOURCE Continental Resources