![]() Receivables Finance Loans supported by the receivables of a company. There is no tangible asset collateral available.Īsset Backed Loans Loans supported by tangible assets excluding property such as equipment, transport vehicles, heavy machinery, inventory and other forms of Plant, Property & Equipment. But a trip with Hamm down to the basement of his 19-story office building suggests he’s not ruling out going farther afield.Cash Flow Lends For high quality businesses generating sufficient cash flow to support lending products. He expects similar growth next year.Īs far as acquisitions go, Hamm is primarily looking at deals to expand in basins where Continental is already operating. “It prevents waste and oversupply and also saves some supply for increased demand without decimating the market.”Ĭontinental’s production growth this year will be about five per cent, Hamm said, in line with large publicly traded drillers. “You have a concentrated amount of production, particularly with the Saudis, and for them to act like a throttle, that’s pretty good,” Hamm said. He’s even learned to appreciate OPEC - once a thorn in shale’s side - for helping to balance the global oil market. That process was completed late last year. Hamm’s solution: Take Continental private. Like finding ancient wealth.”Īfter runaway production triggered an oil-price crash about a decade ago, shale drillers have been under pressure to limit spending and return cash to shareholders. Oil prices near US$80 a barrel mean that for Hamm, it’s a bet worth taking. Continental is one of the few companies drilling in southern Oklahoma, a region not known for crude-rich shale deposits. oil producer, Hamm still proudly calls himself a wildcatter - something of a rarity in an industry that’s largely become averse to risk. “Part of the purpose of this book is to encourage the next barefooted country boy to imagine that he could do something equally as good,” he said. He’s the world’s 77th richest person, according to the Bloomberg Billionaires Index. Hamm, the youngest of 13 children born to Oklahoma sharecroppers, also hopes the book will rally enthusiasm for the industry that made him wealthy. In it, Hamm pushes for a change in energy policy in Washington that would help boost oil and gas production. He spoke before the release of his new book, “Game Changer,” which goes on sale Tuesday. “But have we got a long way to go? Yeah.” “We’ve certainly seen some great days in shale,” he said. Hamm quibbles with the estimates, saying the Permian may not reach its high-water mark until 2035 and will see another 25 per cent pop in production first. This advertisement has not loaded yet, but your article continues below. industry as espoused by Hamm could become a thing of the past. And while that’s likely to support prices and please producers, it suggests the dynamism and growth in the U.S. The current shale slowdown, combined with production cuts from the OPEC+ alliance, is expected to tip the world’s oil market into a deficit by the end of the year. Even in the Permian, the world’s busiest shale basin, production is expected to max out by 2030 and gradually trail off from there. The Bakken has already lost its luster, with output trailing pre-COVID levels. Experts predict output will peak by the end of this decade. shale sector, which is showing signs of reaching middle age. His optimism belies forecasts for the U.S. “I look at it as an industry that is exciting, a lot of adventure, has a lot of potential for making great wealth.” ![]() ![]() “The future is bright,” Hamm, 77, said during an interview with Bloomberg News this month in his Oklahoma City office. Continental is also drilling wells in Wyoming and in the prolific Permian Basin of West Texas and New Mexico. Today, Continental, which he and his family control, is the biggest oil producer in North Dakota and Oklahoma.
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