Continental Resources Strategy

In an interview last week with Forbes, Harold Hamm, CEO of Continental Resources said that while he is cutting capital spending in 2016, he refuses to lay off personnel. Capital spending has been cut 66% from last year to $920 million. Hamm says his “objective is for Continental to live within its cash flow.” Continental’s strategy assumes an average price of $40 per barrel in 2016, which would generate over $100 cash flow for the year. Hamm is keeping jobs because he says “he'll need all his staff for the new boom to come.”