Part 3/6:
One intriguing development is Continental's partnership with Franco-Nevada, a gold and silver streaming company, which represents a novel approach to financing growth. This $220 million deal allows Continental to leverage funds to drill more wells while distributing some financial responsibility to its partner, thereby offsetting their own capital expenditures.
The Franco-Nevada Partnership: A Shift in Strategy
During a recent earnings call, CFO John Hart characterized this deal as a first-of-its-kind partnership between a resource streaming company and a shale producer. Through this collaboration, Franco-Nevada will assist in acquiring new leases while Continental identifies the most promising drilling opportunities.