Continental Resources shares slip over CEO’s nearly $1 billion divorce

November 10, 2014, 7:56 PM UTC
Harold Hamm, chairman of Continental Resources Inc., stands
UNITED STATES - OCTOBER 22: Harold Hamm, chairman of Continental Resources Inc., stands for a photo near an oil rig outside Watonga, Oklahoma, U.S., on Wednesday, Oct. 22, 2008. Hamm, owner of a 150-person oil company in 1988, began leasing 30,000 acres of Montana and North Dakota prairie he knew wouldn't produce oil. For 12 years, he sat back and watched rivals fail to draw from rocky ground. Today, geologists say the area may contain more oil than Saudi Arabia, making him the richest U.S. oilman. (Photo by Larry Smith/Bloomberg via Getty Images)
Photograph by Larry Smith — Bloomberg/Getty Images

It’s shaping up to be an expensive day for Continental Resources CEO Harold Hamm.

The oil billionaire has been ordered to pay his wife $995.5 million as part of a divorce settlement, according to a court filing made public on Monday. Meanwhile, news of the settlement caused a drop in the stock price of Continental (CLR), in which Hamm personally holds about a 68% stake. An Oklahoma County judge placed a lien on 20 million shares of Continental stock in order to secure the judgement, the filing said.

As part of a settlement with his second wife, Hamm has been ordered by an Oklahoma County judge to pay $322 million by the end of the year, with the remaining balance being paid out to Sue Ann Hamm in monthly installments of at least $7 million each month. Hamm’s ex-wife has already received about $25 million from the CEO since she first filed for divorce in 2012.

The order, which is subject to appeal, follows the couple’s divorce trial, which lasted more than two months before wrapping up in September. The couple, who married in 1988, had been working on splitting up Hamm’s nearly $17 billion fortune. Before this week’s order was made public, people close to the case told Reuters that the settlement could exceed $3 billion.

Shares of Continental were lately lower following reports of the settlement amount. The company, which is the largest oil producer in North Dakota’s Bakken shale play, had already been suffering of late thanks to falling oil prices. The company’s shares have lost almost one-third of their value since hitting all-time highs at the beginning of September.