Continental Resources Unveils 2-for-1 Stock Split

By Dow Jones Business News, 

By Anna Prior

Continental Resources Inc. on Monday said its board has approved a two-for-one stock split that will be issued in the form of a stock dividend next month.

The oil-and-natural gas company recently had about 186.1 million shares outstanding, according to its quarterly regulatory filing.

In a stock split, a company increases the number of shares outstanding while lowering the price accordingly. While splits don't change anything fundamentally about a company or its valuation, they tend to make a company's stock more attractive to mom-and-pop investors.

Splits were hugely popular in the 1980s and 1990s, but lost their cache in recent years even as the nominal value of stock prices soared.

"This split signifies our confidence in the company's growth potential and also increases access to CLR as an investment opportunity for a broader range of investors," said Chief Executive Harold G. Hamm.

Earlier this month, the Bakken Shale oil producer said second-quarter earnings fell nearly 68% from a year earlier as higher operating costs masked an increase in revenue and oil production.

The Oklahoma City oil producer said at that time that it anticipates oil inventories will increase in the second half of the year, which could result in reduced sales volumes in the third and fourth quarters by a total of about 500,000 net barrels. However, that impact may be partially offset by sales of previously stored production throughout the company's facilities in the Bakken.

Write to Anna Prior at

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This article appears in: Energy

Referenced Stocks: CLR

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