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 In an 80-page ruling following a more than nine-week divorce trial
that ended last month, Oklahoma Special Judge Howard Haralson ruled
that oil magnate Hamm should pay his ex-wife a total of $995.5
million.
Although the award could make Sue Ann Hamm, 58, one of the 100
wealthiest women in the United States, according to Forbes'
rankings, it is far smaller than the amount her lawyers sought and
does not require Harold Hamm to sell shares of Continental.
He holds 68 percent of the firm's shares. During the trial, Sue Ann
Hamm's lawyers had asked Haralson to split a marital estate they
estimated to be worth at least $17 billion, tied up in Continental
shares.
Judge Haralson's ruling is subject to appeal, but if accepted by
both parties it would allow Continental's CEO to put a contentious
and time-consuming divorce behind him and to remain the controlling
shareholder of one of America's most successful oil companies.
"As Continental has stated on numerous previous occasions, this
private matter has not, and will not have any impact or effect on
the Company’s business or operations," Continental said in a
statement.
Through her lawyers, Sue Ann Hamm declined comment. Her legal team
said it would be "evaluating Ms. Hamm's options."
Following news of the judgment, Continental shares fell 1.6 percent
to $54.22 per share. The shares have lost around 30 percent since
July 1, in step with tumbling world oil prices.
Harold Hamm's Continental stake is now worth around $13.9 billion,
down from more than $18 billion before the trial began.
Oklahoma City-based Continental is a leading driller in the Bakken
Shale play of North Dakota and Montana, the largest U.S. oil
discovery in decades. Through his stake in Continental, Harold Hamm
is believed to own more oil underground than any other American.
The Hamms wed in 1988 and had no prenuptial agreement. For years,
Sue Ann Hamm was also an executive at Continental.
Some of the largest-ever U.S. divorce settlements have been kept
private, but the Hamm judgment is among the biggest on record.
In a 2010 divorce settlement, casino magnate Steve Wynn agreed to
transfer 11 million shares in Wynn Resorts, then worth $741 million,
to his ex-wife Elaine, according to filings with the U.S. Securities
and Exchange Commission.
To secure the judgment, Judge Haralson placed a lien on 20 million
shares of Continental stock. That decision does not require Hamm to
sell shares.
Judge Haralson ordered Hamm, 68, to pay his ex-wife about one-third
of the funds, or $322.7 million, by the end of 2014, the filing
says.
Hamm will be required to pay the rest of the judgment, or $650
million, in installments worth at least $7 million per month,
according to the filing. Sue Ann Hamm has already been awarded
around $25 million from the marital estate since the case was filed
in 2012, the court said.
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Haralson's ruling may come as a relief to some of Continental's
other shareholders, who had worried that a multi-billion dollar
award could force Hamm to sell a major chunk of the company quickly,
potentially depressing the value of the shares or eroding his
control of the firm. "With this rather small settlement, it just
removes some of the uncertainty," said Mike Breard, analyst with
Hodges Capital Management in Dallas. "And there's already enough
uncertainty around energy stocks right now with the oil price drop."
At stake in the case was how much of Continental's rising value
could be attributed to the role played by the CEO.
Under Oklahoma law, the enhancement of wealth that comes as a result
of the efforts, skills or funds of either spouse is subject to
"equitable distribution."
Over the 26-year marriage, the value of Continental soared some
400-fold. During the trial, Harold Hamm's legal team contended that
Continental's growing wealth was mostly due to passive or market
factors such as the rising price of oil.
Seeking a larger judgment, Sue Ann Hamm's lawyers called expert
witnesses to show that Continental grew because of Harold Hamm's
deft management decisions.
Judge Haralson found that Harold Hamm played a central role in his
company, but he did not agree with the massive dollar values that
Sue Ann's expert witnesses placed on the CEO's contributions to
Continental's weatlh.
For instance, Haralson wrote that the experts had not established
exactly how much value was attributed solely to Harold Hamm and not
to other managers at Continental, and that passive factors like oil
prices and new technologies helped to propel the firm's value.
 Among the assets that will go to Sue Ann Hamm, according to
Haralson's judgment, are the couple's $17.5 million ranch in Carmel,
California, and a home worth $4.7 million in Oklahoma City.
The judge's full ruling can be found at: http://bit.ly/10NBFl9
(Additional reporting by Brian Grow in Atlanta and Terry Wade in
Houston; Editing by Dan Grebler and Andrew Hay)
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