Continental Resources installs new president

BY JAY F. MARKS Comments 0
Published: November 6, 2009

ENID — Continental Resources Inc. announced a change at the top Thursday as the independent oil and gas company reported its third-quarter earnings.

Multimedia

More Info

Oil company’s earnings, income up

Continental Resources Inc. reported Thursday it had doubled its operating earnings and net income for the third quarter, compared with the previous three months, thanks to higher crude oil prices and lower production costs. But for the quarter, net income was $34.9 million, or 21 cents a share. That is down from $105.3 million and 62 cents a share for the same quarter of 2008. Continental also announced an increase to its capital expenditure budget, from $390 million to $415 million. The company plans to have 12 drilling rigs operating by the end of the year rather than six. "We expect this budget to drive 2010 production growth of approximately 10 percent,” said Harold Hamm, the company’s chairman. "Along with strong execution and cost management, our focus will be to accelerate production growth momentum by mid-year and then sustain that growth in 2011.” Continental plans with spend $650 million on capital expenditures in 2010, with as many as 23 operating rigs.

Chief Operating Officer Jeff Hume was promoted to president, a position that had been vacant for more than a year. Former President Mark Monroe retired Oct. 31, 2008.

Founder Harold Hamm, the company’s chairman and chief executive officer, said Hume has earned his new responsibilities in his 26 years with Continental.

Hume joined Continental in 1983 after stints with three other oil companies in engineering positions. He was hired as vice president of engineering and operations. A series of promotions resulted in him being named COO last fall.

"He’s done a good job of taking hold here. (He) immediately became a top player in our operations group,” Hamm said in a telephone interview. "That paved the way ... for Jeff’s upward mobility.”

Hamm praised Hume’s performance since being elevated to Continental’s top operations post.

"Jeff has demonstrated excellent leadership, especially over the past 12 months as he guided us through a period of extraordinary volatility in commodity prices and positioned the company to re-accelerate growth,” Hamm said in a news release. "Along with operating and cost improvements, he played a key role in maintaining the company’s focus on capital discipline as we weathered the storm this past year.”

Hume also has helped strengthen Continental by bringing in additional management personnel with an eye toward future growth, Hamm said.

Continental has increased its drilling activity, with plans to have 12 rigs operating by the end of the year. The previous target was six.

The company intends to have 23 operating rigs by mid-2010.

Hamm insisted his involvement in the company’s business will not change because of Hume’s promotion.

"I’m just going to be as active as I’ve ever been,” Hamm said.