Oklahoma Inc. by OPUBCO Communications Group

OKLAHOMA

INC.

Sunday, November 14, 2010

State stocks stay strong BY DON MECOY Business Writer dmecoy@opubco.com

Oklahoma’s economy has weathered the Great Recession as well as any state’s, and the state’s public companies have demonstrated a similarly robust constitution. An index that represents the stocks of Oklahoma’s 31 largest public companies reflects that strength. The SPADE Oklahoma Index grew nearly 32 percent from July 1, 2009, through June 30, 2010 — the time frame that coincides with the period of evaluation of nearly all of the Oklahoma Inc. stocks. In the same period, the Standard & Poor’s 500 gained about 12 percent. In other words, a $1,000 investment in that Oklahoma index would have produced a profit of $320 over the past year, compared with a $120 gain in the investment in the S&P 500. Jim Huntzinger, chief investment officer for Tulsa’s BOK Financial, said two factors appear to have played a role in the strong performance of state-based stocks. “The emphasis in Oklahoma publicly traded companies from the energy sector has helped performance this year, and therefore the whole group is doing better than the general market,” Huntzinger said. In the first nine months of 2010, the stocks of Oklahoma energy companies have gained about 16 percent, well above the 6 percent return of the S&P 500, Huntzinger said. Many of the state’s public companies also are long-term players in their market, he said. “Along with that comes stability and also probably comes lower debt levels,” Huntzinger said. “Many of these companies have debt levels that are very manageable.” SEE STOCKS, PAGE 2I

INSIDE Continental Resources ...............Page 3 Williams Partners.........................Page 3

Dollar Thrifty .......... ..........Page 4 Magellan Midstream.........Page 5 ILLUSTRATION BY CHRIS SCHOELEN, THE OKLAHOMAN GRAPHICS

OKLAHOMA INC.

SUNDAY, NOVEMBER 14, 2010

Stocks: State is more than OK FROM PAGE 1I

The dangers of excess leverage have been highlighted as the nation entered the Great Recession and now begins a slow economic recovery, he said. The strong stock performance of state companies reflects a remarkable turnaround after a year that was marked with huge losses and massive uncertainty, Tulsa money manager Fred Russell said. “It’s been a good year — a very good year,” said Russell, head of Fredric E. Russell Investment Management Co. Even by Wall Street standards, Oklahoma is more than OK.

Measurements While shareholders are most interested in the return on their investments, Oklahoma Inc. tracks two other metrics to rank the state’s public companies. The 36 state-based firms that trade on major exchanges are ranked by each of the three measures, and the company that achieves the best overall rankings collects the top spot. Total return to investors includes gains or losses in stock price plus any dividends. Dollar Thrifty Automotive Group claimed that category with a 205 percent return. Tulsabased Dollar Thrifty also posted the best result in earnings per share growth with a jump of 283 percent. Continental Resources, an Enid-based energy company, took the top spot in revenue gain, posting a onethird increase in its revenue growth over the previous year. Continental Resources, which also posted strong numbers in the earnings and stock return categories was the top-rated company in this year’s Oklahoma Inc. The Oklahoma Inc. methodology rewards companies that grow quickly, boost profits and benefit shareholders. Rare is the company that can do all three simultaneously.

State stocks Oklahoma’s public companies are dominated by energy firms. The 10

Prior Rank Rank Company Name

Score

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36

4.00 5.33 6.67 7.67 8.00 10.00 11.33 11.67 13.00 14.00 14.33 14.67 15.00 15.00 15.33 18.00 18.00 19.00 19.33 19.33 19.33 19.67 21.00 22.67 22.67 23.33 23.33 23.33 24.00 24.67 27.33 27.67 29.33 30.67 33.67 33.67

40 29 3 26 6 7 39 33 37 19 13 35 28 20 41 30 21 9 4 12 42 22 23 38 44 NR 2 8 5 11 15 14 16 18 1 43

OIL, NATURAL GAS INDUSTRY BOASTS 8 OF TOP 10 PUBLIC COMPANIES IN OKLAHOMA

largest companies all are in the energy business, although their business models differ. While natural gas prices remain stagnant and lower than most in the business here would like, several of the state’s energy companies prospered over the past year. Continental Resources, which has secured a foothold in the oil-rich Bakken Shale of the Dakotas, has benefitted from strong crude prices. Second-ranked Williams Partners, of Tulsa, posted strong shareholder returns and grew its revenues. The partnership, created by Williams Cos. Inc. to hold assets like pipelines, benefitted from a transaction this year that vastly increased the size of the business, making it one of the largest master limited partnerships in the nation. Dollar Thrifty earned the third-place rank, with a slight dip in revenues being the only obstacle to a higher ranking. Dollar Thrifty has completed a remarkable turnaround since the depths of the recession in late 2008 that has produced huge gains in the company’s stock price. The company restructured its debt, shed some unfavorable deals related to its rental vehicle fleet, and has been courted by some of the rental car industry’s biggest players. Fourth-ranked Magellan Midstream Partners also was created by Williams Cos. Inc., which later sold its stake to private equity investors. Last year, Magellan absorbed its holding company in a move designed to save money, help fund acquisitions and reduce regulatory reporting duties. The move paid off as Magellan performed well in each of the three Oklahoma Inc. categories. Another energy-based partnership, Alliance Holdings, claimed the fifth-place spot. Alliance is a Tulsa-based company that holds assets of Alliance Resource Partners LP, one of the nation’s top coal producers. Alliance earned top-five rankings in total return to shareholders and revenue growth.

Top major companies Continental Resources Inc Williams Partners LP Dollar Thrifty Automotive Group Inc. Magellan Midstream Partners LP Alliance Holdings GP LP Alliance Resource Partners LP Gulfport Energy Corp ONEOK Inc. ADDvantage Technologies Group Inc ONEOK Partners LP Williams Pipeline Partners LP Ram Energy Resources Inc Panhandle Oil & Gas Inc OGE Energy Corp. Unit Corp Devon Energy Corp Southwest Bancorp Inc BOK Financial Corp Pre-Paid Legal Services Inc. Educational Development Corp Williams Cos Inc. (The) BancFirst Corp Chesapeake Energy Corp GMX Resources Inc SandRidge Energy Inc PostRock Energy Corp Orchids Paper Products Co GrayMark Healthcare Inc AAON Inc XETA Technologies Inc Helmerich & Payne Inc. Matrix Service Co LSB Industries Inc Sonic Corp Syntroleum Corp Bronco Drilling Company Inc

THE OKLAHOMAN | NEWSOK.COM

Devon tower construction in downtown Oklahoma City is shown Nov. 1.

Energy companies fuel state’s economy BY JAY F. MARKS Business Writer jmarks@opubco.com

Construction is shown at the base of the Devon tower.

One Year Total Return (Stock and dividends) in percent Rank

60.8 163.6 205.4 44.2 96.4 49.5 73.1 53.2 70.9 51.5 89.3 158.4 36.2 34.5 47.2 12.9 36.9 28.6 4.4 15.4 19.9 8.1 7.0 -39.0 -31.6 -17.8 -36.7 -40.0 19.0 34.5 18.9 -18.9 -17.7 -22.7 -26.5 -21.7

PHOTO BY PAUL B. SOUTHERLAND, THE OKLAHOMAN

8 2 1 13 4 11 6 9 7 10 5 3 15 16 12 23 14 18 26 22 19 24 25 35 33 28 34 36 20 17 21 29 27 31 32 30

Percent Change in Revenues ‘09 to ‘10

33.7 31.4 -5.5 32.6 12.1 12.1 -8.5 6.0 -2.1 31.2 0.0 -41.7 -4.4 6.0 -28.0 -18.3 -5.2 -6.5 1.4 0.6 2.8 -5.6 -37.5 -12.3 -16.5 -24.8 -1.5 6.8 -16.7 -7.8 -18.9 -9.7 -20.2 -26.3 -54.5 -61.5

Oklahoma is an energy state, as evidenced by the glut of such companies atop the ranking of the state’s top public companies. Eight of the top 10 companies in this year’s Oklahoma Inc. list are energy companies, led by Enid’s Continental Resources Inc. That contingent includes coal-fueled stalwarts Alliance Holdings GP LP and Alliance Resource Partners LP, the only two of the state’s many energy companies to maintain their top 10 ranking from last year. The other energy firms among this year’s elite include two specializing in the hunt for oil and four others heavily involved in the pipeline business. Oklahoma Independent Petroleum Association President Mike Terry said the glut of energy companies on the list shows the importance of the oil and natural gas industry. “With six of the top 10

Percent Change in Earnings Per Share ‘09 to ‘10 Rank

Rank

1 3 18 2 5 6 22 8 15 4 13 34 16 9 32 27 17 20 11 12 10 19 33 24 25 30 14 7 26 21 28 23 29 31 35 36

3 7,584.195 906.078 258.649 11 11,156.992 3,083.394 635.427 1 1,222.140 1,528.770 111.113 8 4,989.674 1,345.780 267.167 15 2,105.382 1,378.479 136.943 13 1,651.164 1,378.831 238.635 6 528.565 103.445 36.186 18 4,602.449 12,825.295 337.750 17 28.606 45.740 4.050 28 6,551.665 8,085.696 426.111 25 1,084.821 0.000 47.227 7 162.731 110.373 -10.593 14 219.686 50.623 8.726 20 3,559.957 3,382.000 272.500 2 1,941.704 740.942 128.290 4 26,762.155 9,745.000 3,064.000 23 257.680 165.898 14.491 19 3,231.805 1,398.879 217.086 21 451.670 463.325 57.518 24 21.359 28.575 1.687 29 10,675.520 9,312.000 307.000 16 560.012 234.427 39.569 5 13,638.513 8,844.000 661.000 9 200.554 93.144 -45.398 10 1,227.798 691.366 -448.807 12 37.975 107.448 -56.316 22 97.331 93.917 10.512 27 34.781 112.343 -3.949 26 386.387 226.560 24.835 36 32.551 75.478 -9.658 33 3,864.218 1,678.422 124.755 31 244.927 635.784 16.844 32 280.748 541.880 8.838 30 477.679 568.972 33.442 34 126.998 11.076 -2.957 35 91.040 84.648 -78.067

178.2 64.0 283.2 89.6 35.5 51.8 117.6 15.2 21.2 -31.1 -10.8 94.7 46.5 6.0 189.2 139.0 -9.7 8.1 2.2 -10.4 -32.9 21.7 124.4 88.9 84.4 52.8 -9.4 -30.0 -11.6 -733.3 -70.9 -48.0 -69.5 -37.5 -145.5 -160.7

Market Value (in Millions) June 30, 2010

‘10 Total Revenues (in Millions)

‘10 Net Income (in Millions)

‘10 Return on Average Equity (in percent)

24.1 29.8 31.9 25.1 49.0 66.5 25.5 14.8 13.4 13.5 10.8 -106.5 12.9 13.5 8.1 19.9 3.8 9.7 96.5 11.3 3.8 9.2 5.4 -21.6 NM NM 19.5 -21.1 22.9 -25.8 4.7 9.8 5.6 NM -10.4 -22.3

Industry Sector

Energy Energy Service Energy Energy Energy Energy Energy Technology Energy Energy Energy Energy Energy Energy Energy Financial/Banks Financial/Banks Service Service Energy Financial/Banks Energy Energy Energy Energy Manufacturing Service Manufacturing Service Energy Energy Manufacturing Service Energy Energy

Source: Capital IQ, a Standard & Poor’s Business

Top OTC companies Prior Rank Rank Company Name

Score

1 NR Vaughan Foods Inc 2 NR Blueknight Energy Partners LP 3 1 Beard Co 4 7 Reserve Petroleum Co 5 2 Enxnet Inc NR 3 Double Eagle Holdings Ltd NR 4 Greystone Logistics Inc

1.67 3.00 3.33 4.00 5.00 NR NR

One Year Total Return (Stock and dividends) in percent Rank

0.0 35.5 -3.1 -20.1 -75.0 -43.8 -54.5

2 1 3 4 7 5 6

Percent Change in Revenues ‘09 to ‘10

Percent Change in Earnings Per Share ‘09 to ‘10 Rank

-1.7 1 -13.5 4 -76.7 6 -10.6 3 -52.6 5 NA NA -7.0 2

Rank

98.2 2 8.9 4 340.0 1 -16.6 5 50.0 3 NC NA NC NA

Market Value (in Millions) June 30, 2010

‘10 Total Revenues (in Millions)

‘10 Net Income (in Millions)

5.722 288.103 30.957 37.030 4.502 0.458 2.872

94.697 152.568 0.334 12.113 0.009 0.008 15.743

0.125 -17.762 2.340 3.486 -0.344 -0.078 0.638

‘10 Return on Average Equity (in percent)

1.6 NM NM 13.3 NM NM NM

Industry Sector

Service Energy Energy Energy Technology Service Manufacturing

Source: Capital IQ, a Standard & Poor’s Business

With six of the top 10 and 20 of the 36 listed companies coming from the oil and natural gas industry, our state must continue to support and encourage the development and use of Oklahoma resources.” MIKE TERRY

OKLAHOMA INDEPENDENT PETROLEUM ASSOCIATION

and 20 of the 36 listed companies coming from the oil and natural gas industry, our state must continue to support and encourage the development and use of Oklahoma resources,” Terry said. “Oil producers, like Continental Resources, and producers with balanced crude oil and natural gas production have fared best in the past year, with the use of improved drilling technology and hydraulic fracturing unlocking vast new resources. The past year was a tough one for contract drilling companies such as Unit Corp. and Bronco Drilling, which posted the largest drop in revenues by percentage, Oklahoma City University economist Steve Agee said. “Obviously the continued suppressed price of natural gas and the slack demand for energy in general have driven this trend,” he said. Agee said the rankings show companies focusing on natural gas exploration are struggling more than their counterparts. Continental CEO Harold Hamm has long been known for his thirst for crude oil. That is paying dividends for his company. “A lot of people are very envious of the position that Continental has with crude oil,” Hamm said. Terry said natural gas remains an important commodity for Oklahoma. “Natural gas continues to be a defining natural resource for our state, with approximately 80 percent of all drilling rigs active in Oklahoma exploring for it,” he said. “The vast majority of the natural gas produced from under our feet is used outside of our state. “We must promote the use of natural gas within our own borders through power generation, transportation and manufacturing.”

THE OKLAHOMAN | NEWSOK.COM

OKLAHOMA INC.

SUNDAY, NOVEMBER 14, 2010

Enid’s Continental cashing in on crude

Harold Hamm, CEO of Continental Resources, stands near some of the company’s pump jacks. PHOTO BY DAVID MCDANIEL, THE OKLAHOMAN

NO. 1 | COMPANY’S REVENUES RISE 33.7 PERCENT FOR YEAR BY JAY F. MARKS Business Writer jmarks@opubco.com

Crude is king, at least when it comes to the oil and natural gas industry. Continental Resources Inc.’s long-established devotion to that principle is just one of the reasons the Enid-based company is atop the Oklahoma Inc. rankings for the second time in three years, CEO Harold Hamm said. Hamm credited Continental’s employees with much of the company’s success because teams in Continental’s different operations areas have developed “amazing” synergy. “Teamwork is certainly one of those things that sets us apart,” he said. Continental’s revenues rose a state-best 33.7 percent for the year, while its 178.2 percent rise in earnings per share was third best. President Jeff Hume said the company has been blessed with Hamm’s vision to hunt for oil, combining his expertise with a solid asset base. “I think that’s one of the reasons we’re doing well financially,” he said. Hamm said Continental has an inventory of quality

assets in place, making it possible for officials to plan to triple the size of the company over the next five years. Continental historically has doubled on that time schedule. He said most of Continental’s $1.359 billion budget will be dedicated to developing those assets. “We put most of that back in the ground,” Hamm said. He said there are not many U.S. oil and natural gas companies whose crude oil production exceeds more than half of its total production. “You really run out before you can count that many. Very few,” he said. “A lot of people lost the will to look for crude oil as the industry was flooded with cheap foreign oil for the past 40 to 50 years.” That has changed as the nation began efforts to wean itself off foreign oil. Hamm said new technology also has made it easier to extract oil from areas long thought to be untenable for producers. “There’s a lot of opportunity here in America,” he said. Continental is at the center of one of the biggest areas of opportunity in the U.S.: the Bakken Shale for-

mation in North Dakota and Montana. “There’s a lot going on up there,” Hamm said. “That’s the hottest oil play in America today, probably the hottest exploration play — period.” The Enid-based company has become synonymous with the Bakken. It was the first company to drill a horizontal well there and remains the Bakken’s largest leaseholder with about 865,000 acres. Hamm had estimated the Bakken could yield 8 billion barrels of oil, but he said he now thinks it may hold three times that much oil. Continental also has high hopes for Oklahoma’s Anadarko Woodford Shale, a liquids-rich resource play. Hume said the play has some similarities to the Bakken, according to tests the company conducted several years ago in Dewey County. Continental has assembled more than 250,000 acres of leasehold in the area with plans to continue ramping up its drilling schedule there. “That’s going to be a very exciting play for Oklahoma,” Hume said.

Restructuring boosts Williams Partners

Williams Partners LP’s Milagro natural gas processing facility near Bloomfield, N.M.

NO. 2 | CEO SAYS CHANGES IMPROVED ‘ALREADY WINNING HAND’ BY JAY F. MARKS Business Writer jmarks@opubco.com

Williams Partners LP got a major infusion of infrastructure this year thanks to a restructuring by its corporate parent, the Williams Cos. Inc. That turned a small midstream-based master limited partnership into one of the top companies in Oklahoma. Williams Partners ranked No. 2 on this year’s Oklahoma Inc. list of the state’s top public companies, fueled by a 163.6 percent increase in total returns. CEO Steve Malcolm said Williams Partners is now one of the largest diversified master limited partnerships in the industry. The restructuring plan announced in January should pay dividends for years to come, he said. “Going into 2010, prior

to this transaction, I think we had a very attractive future. Our guidance reflected earnings that were projected to double over the next two years,” Malcolm said in a January conference call. “We had identified $5 billion in organic growth projects. We knew how we were going to grow. “I think this transformational transaction simply improves our already winning hand.” Travis Campbell, the partnership’s vice president of finance, said Williams Partners possesses energy assets that are among the best in the industry. Its natural gas pipeline system delivers an average of 12 percent of the gas used daily in the United States, he said. Williams Partners has its midstream assets concentrated in key areas, Campbell said. It is the

largest producer of natural gas liquids in the Rocky Mountains and the largest gas gatherer in the Gulf Coast. Campbell said Williams Partners is very attractive to investors now because master limited partnerships are yield-based securities. Williams Partners produces steady revenue as a fee-based business. Campbell said customers rent a share of the capacity in Williams Partners’ pipeline system. They must pay regardless of whether they have any gas flowing in the pipe. “They’re paying for the pipeline every day,” he said. Campbell said those assets give Williams Partners a bright future because there are plenty of growth opportunities available without having to make any major acquisitions.

These pumping units in Enid are owned by Continental Resources. PHOTO BY DAVID MCDANIEL, THE OKLAHOMAN

One of the rigs in North Dakota owned by Continental Resources.

OKLAHOMA INC.

SUNDAY, NOVEMBER 14, 2010

COMPANY PROFILES 1. CONTINENTAL RESOURCES INC.

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Address: 302 N Independence Enid, Oklahoma 73702 Phone: 580-233-8955 Website: www.contres.com Ticker: CLR Exchange: NYSE At the top: Harold G. Hamm Employees: 408 Industry: Oil & gas drilling & exploration. Summary: Continental Resources Inc. engages in the exploration, exploitation and production of oil and natural gas properties primarily in the U.S.

THE OKLAHOMAN | NEWSOK.COM

Dollar Thrifty Automotive rewards its shareholders

2. WILLIAMS PARTNERS LP

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Address: 1 Williams Center Tulsa, Oklahoma 74172-0172 Phone: 918-573-2000 Website: www.williamslp.com Ticker: WPZ Exchange: NYSE At the top: Steven J. Malcolm Employees: 266 Industry: Specialty chemicals Summary: Williams Partners LP engages in gathering, transporting, processing and treating natural gas, as well as fractionating and storing natural gas liquids in the United States.

3. DOLLAR THRIFTY AUTOMOTIVE GROUP INC.

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Address: 5330 E 31st St. Tulsa, Oklahoma 74135 Phone: 918-660-7700 Website: www.dtag.com Ticker: DTG Exchange: NYSE At the top: Scott L. Thompson Employees: 6,000 Industry: Rental and leasing services Summary: Dollar Thrifty Automotive Group Inc., through its subsidiaries, rents and leases vehicles through company-owned and franchised stores under Dollar and the Thrifty brand names primarily in the United States and Canada.

4. MAGELLAN MIDSTREAM PARTNERS LP

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Address: 1 Williams Center Tulsa, Oklahoma 74172 Phone: 918-574-7000 Website: www.magellanlp.com Ticker: MMP Exchange: NYSE At the top: Donald R. Wellendorf Employees: 1,217 Industry: Oil & gas pipelines Summary: Magellan Midstream Partners LP, together with its subsidiaries, engages in the transportation, storage and distribution of refined petroleum products in the United States.

5. ALLIANCE HOLDINGS GP LP

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Address: 1717 S Boulder Ave., Suite 400 Tulsa, Oklahoma 74119 Phone: 918-295-1415 Website: www.ahgp.com Ticker: AHGP Exchange: Nasdaq At the top: Joseph W. Craft III Employees: 3,090 Industry: Nonmetallic mineral mining Summary: Alliance Holdings GP LP, through its subsidiaries, produces and markets coal primarily to utilities and industrial users in the United States. It produces a range of steam coal with varying sulfur and heat contents.

6. ALLIANCE RESOURCE PARTNERS LP

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Address: 1717 S Boulder Ave., Suite 400 Tulsa, Oklahoma 74119 Phone: 918-295-7600 Website: www.arlp.com Ticker: ARLP Exchange: Nasdaq At the top: Joseph W. Craft III Employees: 3,090 Industry: Industrial metals and minerals Summary: Alliance Resource Partners LP engages in the production and marketing of coal for utilities and industrial users in the United States. It offers low-, medium- and high-sulfur coal.

7. GULFPORT ENERGY CORP.

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Address: 14313 N May Ave., Suite 100 Oklahoma City, Oklahoma 73134 Phone: 405-848-8807 Website: www.gulfportenergy.com Ticker: GPOR Exchange: Nasdaq At the top: James D. Palm Employees: 40 Industry: Independent oil & gas Summary: Gulfport Energy Corp. engages in the exploration, development, and production of oil and gas in the Louisiana Gulf Coast in the West Cote Blanche Bay and Hackberry fields.

8. ONEOK INC.

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Address: 100 W 5th St. Tulsa, Oklahoma 74103 Phone: 918-588-7000 Website: www.oneok.com Ticker: OKE Exchange: NYSE At the top: John W. Gibson Employees: 4,758 Industry: Gas utilities Summary: ONEOK Inc. engages in the purchase, transportation, storage, and distribution of natural gas in the United States and Canada. It operates in three segments: ONEOK Partners, Distribution and Energy Services.

9. ADDVANTAGE TECHNOLOGIES GROUP INC.

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Address: 1221 E Houston St. Broken Arrow, Oklahoma 74012-4405 Phone: 918-251-9121 Website: www.addvantagetech.com Ticker: AEY Exchange: Nasdaq At the top: Kenneth A. Chymiak Employees: 140 Industry: Electronics wholesale Summary: ADDvantage Technologies Group Inc., through its subsidiaries, supplies a line of new and used system-critical network equipment and hardware to the cable television industry in North America, Latin America and South America.

Dollar Thrifty counters are shown at Will Rogers World Airport.

PHOTO BY JIM BECKEL, THE OKLAHOMAN

NO. 3 | COMPANY BOUNCES BACK THIS YEAR FROM TALKS OF BANKRUPTCY IN 2009 BY DON MECOY Business Writer dmecoy@opubco.com

TULSA — This is the stock you wish you had bought. Since the onset of the Great Recession, Dollar Thrifty Automotive Group has bounced back from near ruin to reward shareholders lucratively. “You don’t need too many of these to be rich,” Tulsa portfolio manager Fred Russell said. How bad were things at the Tulsa rental car company? When the stock price dipped to a meager 67 cents in March 2009, the company was priced for insolvency, Tulsa money manager Jake Dollarhide said. CEO Scott Thompson conceded that bankruptcy was among the alterna-

tives management was considering. At the time, Dollar Thrifty’s former parent company, Chrysler, owed the company $300 million, and was headed toward bankruptcy. The Chrysler debt eventually was paid, and Dollar Thrifty managed to restructure its crippling debt — a move that required approval from about 100 creditors. At the same time, the company reduced its contractual obligations to build its fleet with Chrysler vehicles, which suffered from unattractive resale values. The stock soared. Recently, Dollar Thrifty shares have been trading near the $50 range. For the second straight year, the benefits to shareholders boosted Dollar

Thrifty’s Oklahoma Inc. rankings. The company produced the best oneyear return at more than 200 percent. Over two years, the total return topped 350 percent. Dollar Thrifty’s 283 percent increase in earnings per share over a oneyear period also topped all state-based public companies. Only a slight dip in revenue prevents Dollar Thrifty from taking Oklahoma Inc.’s overall top ranking. Shareholders in September rejected management’s recommendation and refused a $1.46 billion offer from Hertz to acquire the company. That cheered many in Dollar Thrifty’s hometown of Tulsa who feared a Hertz buyout could mean a loss of some or all of the company’s 700 local jobs.

Avis, which has offered $1.52 billion, remains a strong candidate to buy Dollar Thrifty. Avis operates Tulsa offices that employ 675 people. Thompson, even as he noted that the buyout bidding battle has been disruptive, boasted of the company’s strong earnings. “The company once again has produced another record quarter and is on pace to make 2010 the most profitable year in the history of the company,” he said. “Clearly, we are pleased to report these financial results while still in a relatively flat economic environment,” Thompson said. “The employees of Dollar Thrifty have done a wonderful job focusing on our mission and avoiding distractions.”

OKLAHOMA INC.

THE OKLAHOMAN | NEWSOK.COM

COMPANY PROFILES 10. ONEOK PARTNERS LP

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Address: 100 W 5th St. Tulsa, Oklahoma 74103-2498 Phone: 918-588-7000 Website: www.oneok.com Ticker: OKS Exchange: NYSE At the top: John W. Gibson Employees: 1,273 Industry: Oil & gas pipelines Summary: The company is engaged in the gathering, processing, storage and transportation of natural gas in the United States.

11. WILLIAMS PIPELINE PARTNERS LP

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Address: 1 Williams Center Tulsa, Oklahoma 74172-0172 Phone: 918-573-6714 Website: www.williamspipelinepartners.com Ticker: WMZ Exchange: NYSE At the top: Steven J. Malcolm Employees: 5 Industry: Independent oil & gas Summary: Williams Pipeline Partners LP owns and operates natural gas transportation and storage assets.

12. RAM ENERGY RESOURCES INC.

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Address: 5100 E Skelly Drive, Suite 650 Tulsa, Oklahoma 74135 Phone: 918-663-2800 Website: www.ramenergy.com Ticker: RAME Exchange: NMS At the top: Larry E. Lee Employees: 195 Industry: Independent oil & gas Summary: RAM Energy Resources Inc., an independent oil and natural gas company, engages in the acquisition, development, exploitation, exploration, and production of oil and natural gas properties primarily in Texas, Louisiana, Oklahoma, New Mexico and West Virginia.

13. PANHANDLE OIL & GAS INC.

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Address: 5400 N Grand Blvd., Suite 300, Grand Centre Bldg. Oklahoma City, Oklahoma 73112 Phone: 405-948-1560 Website: www.panra.com Ticker: PHX Exchange: NYSE At the top: Michael C. Coffman Employees: 17 Industry: Independent oil & gas Summary: Panhandle Oil and Gas Inc. engages in the acquisition, management and development of oil and gas properties.

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14. OGE ENERGY CORP.

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Address: 321 N Harvey Ave. Oklahoma City, Oklahoma 73101 Phone: 405-553-3000 Website: www.oge.com Ticker: OGE Exchange: NYSE At the top: Peter B. Delaney Employees: 3,363 Industry: Electric utilities Summary: OGE Energy Corp., together with its subsidiaries, operates as an energy and energy services provider offering physical delivery and related services for electricity and natural gas primarily in the south central United States.

15. UNIT CORP.

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Address: 7130 S Lewis Ave., Suite 1000 Tulsa, Oklahoma 74136 Phone: 918-493-7700 Website: www.unitcorp.com Ticker: UNT Exchange: NYSE At the top: Larry D. Pinkston Employees: 1,094 Industry: Oil & gas drilling & exploration Summary: Unit Corp. operates as a contract drilling company. The company operates through three segments: Contract Drilling, Oil and Natural Gas and Mid-Stream.

16. DEVON ENERGY CORP.

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Address: 20 N Broadway Ave. Oklahoma City, Oklahoma 73102-8260 Phone: 405-235-3611 Website: www.devonenergy.com Ticker: DVN Exchange: NYSE At the top: John Richels Employees: 5,400 Industry: Independent oil & gas Summary: Devon Energy Corp. together with its subsidiaries, primarily engages in oil and gas exploration, development and production; the transportation of oil, gas and natural gas liquids; and the processing of natural gas.

17. SOUTHWEST BANCORP INC.

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Address: 608 S Main Stillwater, Oklahoma 74074 Phone: 405-742-1800 Website: www.banksnb.com Ticker: OKSB Exchange: Nasdaq At the top: Rick Green Employees: 466 Industry: Savings & loans Summary: Southwest Bancorp Inc., a financial holding company, provides commercial and consumer banking services in Oklahoma, Kansas, and Texas.

18. BOK FINANCIAL CORP.

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Address: Bank of Oklahoma Tower Tulsa, Oklahoma 74192 Phone: 918-588-6000 Website: www.bokf.com Ticker: BOKF Exchange: Nasdaq At the top: Stanley A. Lybarger Employees: 4,355 Industry: Regional — Southwest banks Summary: BOK Financial Corp., a financial holding company, provides various financial products and services to commercial and industrial customers, and other financial institutions and consumers in the United States. .

SUNDAY, NOVEMBER 14, 2010

Magellan makes big strides in storage, pipeline markets NO. 4 | ACQUISITIONS, REVENUE RISE PROPEL TULSA-BASED PARTNERSHIP TO HIGH RANK BY JAY F. MARKS Business Writer jmarks@opubco.com

Magellan Midstream Partners LP set the stage for a big year in July 2009 when it acquired a 700mile pipeline system in Texas. CEO Don Wellendorf said the $350 million acquisition has generated a lot of money for the partnership. That helped propel Magellan to the No. 4 spot in this year’s Oklahoma Inc. rankings. The partnership’s performance was bolstered by a 32.6 percent rise in revenue, good for second best among the state’s public companies. “Really the story for Magellan ... is that we’re a yield-related company,” Wellendorf said. “We’re attractive to investors because we provide a very strong upfront yield. Right now it’s between 5.5 and 6 percent. “People are looking for distribution from us that provides that yield, that they can believe is solid and sound.” Wellendorf said investing in Magellan is considered low risk because of its stable assets. “We’re all about growing our cash flow, which allows us to grow our distributions to our unit holders.” Magellan’s success in the past year was about more than its Longhorn pipeline acquisition, he said. The Tulsa-based master limited partnership also completed a $72 million expansion of its Delaware marine terminal in August, adding 1 million barrels of storage capacity and a new truck loading rack. Wellendorf said federal regulators have allowed Magellan to raise pipeline tariffs by 7.6 percent amid increased demand for storage. Magellan also has seen good returns from $100 million in investments in ethanol infrastructure since 2006. Wellendorf said Magellan is poised to become a key supplier of crude oil to refineries in the Houston area, thanks to its acquisition of 100 miles of pipeline from BP in September. The $289 million deal included 7.8 million barrels of crude oil storage capacity in Cushing, where Magellan already is build-

Magellan Midstream Partners owns 9,600 miles of pipeline for petroleum products, including this terminal in Kansas City, Mo.

Don Wellendorf

ing 4.25 million barrels of storage. Wellendorf said Magellan also has 75 million barrels of storage capacity for refined products, with an additional 8 million barrels of storage under construction. “We’re a very big player in the transportation of refined products,” he said. “We’re also a very big play-

A Magellan Midstream terminal in Tulsa.

er in the storage of crude oil and refined products.” Wellendorf said increasing demand likely will head to higher storage rates and additional construction. He said Magellan’s assets are the reason the

partnership has increased its distribution every quarter this year, a trend that is expected to continue into the future. “I’d say that’s a pretty attractive package,” Wellendorf said.

OKLAHOMA INC.

SUNDAY, NOVEMBER 14, 2010

COMPANY PROFILES 19. PRE-PAID LEGAL SERVICES INC.

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Address: 1 Pre-Paid Way Ada, Oklahoma 74820 Phone: 580-436-1234 Website: www.prepaidlegal.com Ticker: PPD Exchange: NYSE At the top: Randy Harp and Mark Brown Employees: 719 Industry: Personal services Summary: Pre-Paid Legal Services Inc. designs, underwrites and markets legal expense plans in the United States and Canada.

THE OKLAHOMAN | NEWSOK.COM

Alliance Holdings wins as long-term investment

20. EDUCATIONAL DEVELOPMENT CORP.

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Address: 10302 E 55th Place Tulsa, Oklahoma 74146-6515 Phone: 918-622-4522 Website: www.edcpub.com Ticker: EDUC Exchange: Nasdaq At the top: Randall W. White Employees: 78 Industry: Wholesale, other Summary: Educational Development Corp. operates as a trade publisher of a line of children’s books in the U.S.

21. WILLIAMS COS INC.

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Address: 1 Williams Center Tulsa, Oklahoma 74172 Phone: 918-573-2000 Website: www.williams.com Ticker: WMB Exchange: NYSE At the top: Steven J. Malcolm Employees: 4,801 Industry: Oil & gas pipelines Summary: The Williams Cos. Inc., through its subsidiaries, engages in the production, gathering, processing and transportation of natural gas.

22. BANCFIRST CORP.

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Address: 101 N Broadway Extension, Suite 200 Oklahoma City, Oklahoma 73102 Phone: 405-270-1086 Website: www.bancfirst.com Ticker: BANF Exchange: Nasdaq At the top: David E. Rainbolt Employees: 1,457 Industry: Regional – Southwest banks Summary: BancFirst Corp. operates as the holding company for BancFirst that provide commercial banking services to retail customers and small to medium-sized businesses in the nonmetropolitan trade centers of Oklahoma and the metropolitan markets of Oklahoma City, Tulsa, Lawton, Muskogee, Norman and Shawnee.

23. CHESAPEAKE ENERGY CORP.

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Address: 6100 N Western Ave. Oklahoma City, Oklahoma 73118 Phone: 405-848-8000 Website: www.chkenergy.com Ticker: CHK Exchange: NYSE At the top: Aubrey K. McClendon Employees: 8,200 Industry: Independent oil & gas Summary: Chesapeake Energy Corp., an oil and natural gas exploration and production company, engages in the acquisition, exploration and development of properties for the production of crude oil and natural gas from underground reservoirs.

24. GMX RESOURCES INC.

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Address: 9400 N Broadway Extension, Suite 600, Oklahoma City, Oklahoma 73114 Phone: 405-600-0711 Website: www.gmxresources.com Ticker: GMXR Exchange: NYSE At the top: Ken L. Kenworthy Jr. Employees: 95 Industry: Independent oil & gas Summary: GMX Resources Inc., together with its subsidiaries, engages in the exploration, development and production of properties for the production of crude oil and natural gas in Texas, Louisiana and New Mexico.

25. SANDRIDGE ENERGY INC.

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Address: 123 Robert S Kerr Ave. Oklahoma City, Oklahoma 73102-6406 Phone: 405-429-5500 Website: www.sandridgeenergy.com Ticker: SD Exchange: NYSE At the top: Tom L. Ward Employees: 1,694 Industry: Oil & gas drilling & exploration Summary: SandRidge Energy Inc., together with its subsidiaries, operates as a natural gas and oil company in the U.S. The company engages in the exploration, development and production of oil and gas properties.

26. POSTROCK ENERGY CORP.

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Address: 210 Park Ave., Suite 2750 Oklahoma City, Oklahoma 73102 Phone: 405-600-7704 Website: www.qrcp.net Ticker: QRCP Exchange: Nasdaq At the top: David C. Lawler Employees: 309 Industry: Oil & gas pipelines Summary: PostRock Energy Corp. engages in exploration, production and the transportation of natural gas primarily in the Cherokee Basin of southeastern Kansas, northeastern Oklahoma and the Appalachian Basin.

27. ORCHIDS PAPER PRODUCTS CO.

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Address: 4826 Hunt St. Pryor, Oklahoma 74361 Phone: 918-825-0616 Website: www.orchidspaper.com Ticker: TIS Exchange: NYSE At the top: Robert A. Snyder Employees: 296 Industry: Paper and paper products Summary: Orchids Paper Products Company manufactures tissue paper products serving the private label consumer markets in the United States.

Alliance Holdings GP LP owns all of its subsidiary’s assets, including the River View coal mine in Kentucky.

NO. 5 | INVESTORS TAKE LOWER INITIAL YIELD IN EXCHANGE FOR FUTURE GROWTH BY JAY F. MARKS Business Writer jmarks@opubco.com

Alliance Holdings GP LP is not an obvious candidate to be one of Oklahoma’s top public companies. It owns the assets of coal producer Alliance Resource Partners LP, plus all of the incentive distribution rights. That makes it a good

long-term investment, while its counterpart is the more likely choice of those seeking immediate dividends. “There is a greater opportunity for growth holding the GP interest,” Chief Financial Officer Brian Cantrell said. He estimated that 10 percent growth for Alliance Resource Partners — ARLP — will translate into 14 percent growth for the

holding company, AHGP, so picking which one to invest in depends on what people want out of their portfolio. As the operating entity, Alliance Resource Partners generates its cash flow solely from its operating assets. Alliance Holdings, which owns about 42 percent of Alliance Resource Partners, can leverage its growth with its incentive

distribution rights. “It’s really two ways to invest in the cash flow streams that our operating assets generate,” Cantrell said. Cantrell said most investors are willing to take lower initial yield from Alliance Holdings GP in exchange for future growth. “It’s really how does this potentially fit into your portfolio,” he said.

Vaughan anticipates profitable year BY PAULA BURKES Business Writer pburkes@opubco.com

After weathering a rough 2008 and 2009 — due largely to a spike in diesel fuel, soy bean and other commodity costs — Vaughan Foods Inc., a Moore-based processor and distributor of fresh cut fruits and vegetables and prepared refrigerated salads for institutional and retail uses, is expected to have its first profitable year since the company’s initial public offering in 2007. President Mark Vaughan said business began to turn around the end of last year, thanks in part, he said, to improved manufacturing operations, consolidated transportation — and a drop in commodity prices. The company was delisted from Nasdaq March 24, after failing to maintain the minimum $1 per share price for 30 consecutive trading days. Its stock since has been trading between 40 cents and 60 cents per share. “We chose not to appeal the decision, but instead to focus on our growth plans,” Vaughan said. Company leaders are looking for a site in the midAtlantic region to base another production facility followed by one on the west coast. In addition to its 160,000-square-foot plant in Moore, where 525 employees work, the 49year-old Vaughan Foods has a 15,000-square-foot facility in Fort Worth it acquired in 2006 when it bought Wild About Foods fresh soups and sauces. Some 30 employees work there and another 30 work in California, growing romaine lettuce, broccoli and cabbage. “With regional facilities that serve the entire country, we can make our product frequently and deliver it quickly — within 12 hours,” Vaughan said. The company’s fleet distributes to 40 states and garners additional revenue from backhaul services. Institutional customers include Applebee’s, Church’s Chicken, Taco Bell, KFC and Pizza Hut, and retail customers, Walmart, Lion Foods and H-E-B.

Vaughan Foods President Mark Vaughan at the food processing plant on October 20 in Moore. PHOTO BY STEVE SISNEY, THE OKLAHOMAN

In an Aug. 10 report, research analyst Howard Halpern of Taglich Brothers in New York (whose affiliates own more than 1 percent of Vaughan common stock and are paid by Vaughan for research reports) predicted a 12month price target of $1.15 per share. For 2010, Halpern predicts an earnings

per share of 5 cents on revenue of nearly $94.3 million and cash earnings, due to a margin expansion, of $3.6 million. It could be advantageous if the company achieves its goal of national expansion by 2014, Halpern wrote, since The Produce Marketing Association expects food demand

to continue to increase, doubling by 2050. Vaughan said he’s excited about where his company is heading. “Fresh foods aren’t a fad,” he said. “People are beginning to live healthier lives and want fresher foods with fewer preservatives — and that’s what we provide.”

OKLAHOMA INC.

THE OKLAHOMAN | NEWSOK.COM

COMPANY PROFILES 28. GRAYMARK HEALTHCARE INC.

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Address: 210 Park Ave., Suite 1350 Oklahoma City, Oklahoma 73102 Phone: 405-601-5300 Website: www.graymarkhealthcare.com Ticker: GRMH Exchange: Nasdaq At the top: Stanton Nelson Employees: 559 Industry: Specialized health services Summary: GrayMark Healthcare Inc. acquires and operates independent retail pharmacy stores that sell prescription drugs and a small assortment of general merchandise in the United States.

29. AAON INC.

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Address: 2425 S Yukon Ave. Tulsa, Oklahoma 74107 Phone: 918-583-2266 Website: www.aaon.com Ticker: AAON Exchange: Nasdaq At the top: Norman H. Asbjornson Employees: 1,165 Industry: General building materials Summary: AAON Inc., together with its subsidiaries, engages in the manufacture and sale of air-conditioning and heating equipment primarily in the United States and Canada.

30. XETA TECHNOLOGIES INC.

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Address: 1814 W Tacoma St. Broken Arrow, Oklahoma 74012 Phone: 918-664-8200 Website: www.xeta.com Ticker: XETA Exchange: Nasdaq At the top: Greg D. Forrest Employees: 372 Industry: Communication equipment Summary: XETA Technologies Inc. provides enterprise-class communications solutions and managed services to the converged communications market in the United States.

31. HELMERICH & PAYNE INC.

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Address: 1437 S Boulder Ave. Tulsa, Oklahoma 74119-3623 Phone: 918-742-5531 Website: www.hpinc.com Ticker: HP Exchange: NYSE At the top: Hans Helmerich Employees: 5,371 Industry: Oil & gas drilling & exploration Summary: Helmerich & Payne Inc. engages in the contract drilling of oil and gas wells in the United States and internationally.

32. MATRIX SERVICE CO.

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Address: 5100 E Skelly Drive, Suite 700 Tulsa, Oklahoma 74135 Phone: 918-838-8822 Website: www.matrixservice.com Ticker: MTRX Exchange: Nasdaq At the top: Michael J. Bradley Employees: 2,818 Industry: Industrial goods Summary: Matrix Service Co. provides construction, and repair and maintenance services primarily to the energy and energy-related industries in the United States and Canada.

33. LSB INDUSTRIES INC.

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Address: 16 S Pennsylvania Ave. Oklahoma City, Oklahoma 73107-7024 Phone: 405-235-4546 Website: www.lsb-okc.com Ticker: LXU Exchange: NYSE At the top: Jack E. Golsen Employees: 1,749 Industry: General building materials Summary: LSB Industries Inc., through its subsidiaries, engages in the manufacture and sale of geothermal and water source heat pumps and air handling products, and chemical products.

34. SONIC CORP.

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Address: 300 Johnny Bench Drive Oklahoma City, Oklahoma 73104 Phone: 405-225-5000 Website: www.sonicdrivein.com Ticker: SONC Exchange: Nasdaq At the top: J. Clifford Hudson Employees: 350 Industry: Restaurants Summary: Sonic Corp. operates and franchises a chain of quick-service drive-in restaurants in the United States.

35. SYNTROLEUM CORP.

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Address: 4322 S 49th W Avenue Tulsa, Oklahoma 74107 Phone: 918-592-7900 Website: www.syntroleum.com Ticker: SYNM Exchange: Nasdaq At the top: Edward G. Roth Employees: 19 Industry: Oil and gas refining & marketing Summary: Syntroleum Corp. engages in the research, development and commercialization of the Syntroleum Process that is designed to convert natural gas into synthetic liquid hydrocarbons.

36. BRONCO DRILLING COMPANY INC.

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Address: 16217 N May Ave. Edmond, Oklahoma 73013-8871 Phone: 405-242-4444 Website: broncodrill.com Ticker: BRNC Exchange: Nasdaq At the top: D. Frank Harrison Employees: 117 Industry: Oil & gas drilling & exploration Summary: Bronco Drilling Co. Inc. provides contract land drilling and workover services to oil and natural gas exploration and production companies in the United States and Mexico.

SUNDAY, NOVEMBER 14, 2010

Alliance Resource Partners views consistency as key NO. 6 | COAL PRODUCER, PARTNER MAKE REPEAT APPEARANCES AMONG TOP 10 BY JAY F. MARKS Business Writer jmarks@opubco.com

The consistent approach seems to be paying off for Alliance Resource Partners LP. The Tulsa-based coal producer and its general partner were two of just three companies that made repeat appearances this year in the Oklahoma Inc. top 10. Alliance ranked No. 6 on the list of Oklahoma’s top public companies, one spot higher than it held last year. Alliance Holdings GP LP moved up one spot to No. 5. Alliance ranks high on another list, as well. It was 29th on Standard & Poor’s list of about 10,000 or so companies it covers based on total returns over the past decade, Alliance Chief Financial Officer Brian Cantrell said. “We’re very pleased that we’ve been able to consistently deliver very, very attractive returns to our investors,” he said. “We believe we’ll be able to do that into the future.” Cantrell said Alliance’s success is based on its steady approach in dealing with a product that tends to be priced over a long period. Some contracts run as long as 20 years, but the average is about seven years. “We focus on building sustainable, long-term cash flows,” he said. “That allows us, if we execute, to be able to deliver sustainable growth and distribution to our unit holders.” As a master limited partnership, Cantrell said Alliance’s principle focus is on growing cash flow. “It’s a fairly straightforward approach,” he said. You don’t necessarily see a lot of volatility when you focus on growing cash flows.” On the operations end, Alliance continues to focus in expected growth areas in the Illinois basin and northern Appalachia. Cantrell said Alliance finished 2009 with coal production of about 26 million tons. That figure is expected to be more than 30 million tons this year, thanks to better-thanpredicted production from Kentucky’s River View

Alliance Resources Partners LP has operated its Mettiki coal mine in West Virginia since 2005.

mine since its completion in August 2009. Additional gains are expected late next year when a new operation at West Virginia’s Tunnel Ridge mine is ready to go online. “We’re showing very solid growth in our production volumes, and we continue to be able to contract at attractive pricing over long terms,” Cantrell said. He said there will continue to be a market for

coal well into the future. “Coal continues to be the backbone of electricity generation in the U.S.,” he said. Cantrell said coal, which accounts for about half of the nation’s electricity, remains the lowest-cost fuel on a delivered basis. “We believe as a country we need to take full advantage of all of our available resources. That includes coal, natural gas, oil, nuclear, hydro, solar, wind,”

he said. “They all can play a part in the energy portfolio, but you need to have a full portfolio. “It’s shortsighted in our view to really believe that you’re going to effectively be able to exclude one source of fuel, or promote one source of fuel over another. “We need it all if we’re going to continue to provide low-cost power to spur the economy,” he said.

OKLAHOMA INC.

SUNDAY, NOVEMBER 14, 2010

THE OKLAHOMAN | NEWSOK.COM

ONEOK confident of its future success

Gulfport Energy Corp. expects to reap the benefits of its investment in Canada’s oil sands with a 25 percent stake in Grizzly Oil Sands.

Gulfport is building on oily reputation NO. 7 | CITY-BASED COMPANY TARGETS SKIPPED RESERVES BY JAY F. MARKS Business Writer jmarks@opubco.com

Gulfport Energy Corp. has a simple philosophy. The Oklahoma Citybased company focuses its operations on areas with immense backlogs of oil then applies the newest technology to get it out of the ground. “We just pick through them and find what’s available,” CEO Jim Palm said. “Our guys call it grunt work. “That’s a real useful skill set to have.” Palm said recent technological advances give Gulfport an edge over the major oil companies that originally explored those areas. Gulfport has domestic operations in Louisiana, Texas and Colorado. “We’re finding new reserves ... that the majors couldn’t find because they didn’t have the technology,” Palm said. Gulfport’s success in those areas made it the No. 7 company on this year’s Oklahoma Inc. list. The company’s stock and dividends rose more than 73 percent between July 1, 2009, and June 30, despite an 8.5 percent dip in revenues.

Jim Palm Gulfport CEO

Mike Moore Vice President and CFO

Chief Financial Officer Mike Moore said Gulfport is poised to reverse that revenue trend in the future because of the recovery of oil prices. He said Gulfport is unusual because 95 percent of its production is oil. Company leaders decided to focus on oil because it is such a scarce commodity. “We’ve always been oily, from the very beginning,” Moore said. Gulfport scaled back production in 2008 when oil prices were falling, but it has rebounded well. Moore said Gulfport expects to end the year with a 20 percent rise in production to about 2 million barrels of oil, with more growth to come in 2011. Palm said Gulfport is in a good position for future growth thanks to its investment in Canada’s oil

sands through Grizzly Oil Sands, a joint venture with a Connecticut hedge fund. Gulfport owns 25 percent of Grizzly, which has amassed a leasehold covering more than 500,000 acres. Some of those holdings are in an area where PetroChina recently paid $9,500 an acre, he said. “There’s an immense value up there,” Palm said. “It’s really not reflected in our stock price.” He said Grizzly recently secured permits for its first steam-assisted gravity drainage facility, which officials expect to have operational by the end of 2012. That operation will produce about 5,000 barrels of oil per day. “In the long term, Grizzly is going to be the most valuable asset that we have at Gulfport,” Palm said.

Service sector experiences more sliders than gainers BY PAULA BURKES Business Writer pburkes@opubco.com

Service companies lost more ground than they gained on the Oklahoma Inc. top companies chart this year. Tulsa-based Dollar Thrifty Automotive Group Inc. stood firm at No. 3, and ADDvantage Technologies Group Inc., a Broken Arrow-based company that resells cable TV equipment, climbed an impressive 28 notches, from No. 37 on last year’s chart to No. 9. But the five remaining companies in the sector slid. Pre-Paid Legal Services Inc., an Ada-based multilevel marketing company that designs, underwrites and markets insurance for legal services, dropped to No. 19 from No. 4 last year. Educational Development Corp., a Tulsa-based company that sells children’s books, moved to No. 20, from No. 12. Sliders in the second tier of companies are: GrayMark Healthcare Inc., No. 28 from No. 8. GrayMark is an Oklahoma City-based company that owns and operates diagnostic sleep centers and a medical equipment company that treats patients for sleep disorders. XETA Technologies Inc., No. 30 from No. 11, a Broken Arrow company that provides telecommunications services for the lodging industry.

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We were in the infancy stages last year, but by the first of next year, we should be in the middle of recovery. And as consumers start to feel recovery, they’ll be a little less stingy with their purse strings, when it comes to service providers.” JAKE DOLLARHIDE

CHIEF EXECUTIVE OF LONGBOW ASSET MANAGEMENT IN TULSA

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Sonic Corp., No. 34 from No. 18, an Oklahoma City-based drive-in restaurant company. Jake Dollarhide, chief executive of Longbow Asset Management in Tulsa who follows the services sector, believes the lower rankings in the sector have more to do with the dominance by energy companies, and the shift in what energy was selling for, than poor performance by service companies. Service companies will hold their own with recession relief, Dollarhide said. “We were in the infancy stages last year, but by the first of next year, we should be in the middle of recovery,” Dollarhide said. “And as consumers start to feel recovery, they’ll be a little less stingy with their purse strings, when it comes to service providers.” Oklahoma’s services industry, which includes retailers, restaurants, hospi-

tals and government, is responsible for more than 84 percent of the nonfarm jobs in the state, said Lynn Gray, an economist with the state Employment Security Commission. Moreover, over the past 12 months, Gray said, service-providing industries have seen a net increase in employment of 16,200, compared with a net employment increase of 8,900 in goods-producing industries, or mining, construction and manufacturing combined.

ONEOK Inc.’s headquarters in downtown Tulsa.

NO. 8 | CEO SAYS COMPANY STRIVES TO SET ITSELF APART BY JAY F. MARKS Business Writer jmarks@opubco.com

TULSA — ONEOK Inc. managed to prosper during the last year while many of its industry peers struggled. CEO John W. Gibson said officials at the diversified energy company understand supply and demand, so they have been able to develop ways to connect the two. Gibson said that has allowed ONEOK, and subsidiary ONEOK Partners LP, to continue to grow, even during the challenging economic times plaguing the oil and natural gas industry. “In 2009, our natural gas distribution segment, which includes our three natural gas utilities, essentially closed the performance gap between actual and allowed returns as it again improved year-overyear earnings,” Gibson said. “This was achieved largely through innovative rate designs that provided more timely and appropriate returns, while mitigating risks.” ONEOK is the parent company of Oklahoma Natural Gas, Texas Gas Service and Kansas Gas

John W. Gibson ONEOK Inc. CEO

Service, making it one of the largest natural gas distributors in the United States. It serves more than 2 million customers in those states. Gibson said ONEOK also is taking steps to reduce the earnings volatility and working capital requirements of its energy services segment without affecting customer service. “We are on track to realign contracted storage and transportation capacity with the needs of our premium-services customers — primarily utilities — while improving our financial results,” he said. Gibson said he expects ONEOK to sustain the performance that landed it at No. 8 on the Oklahoma Inc. list this year. “ONEOK has a strong balance sheet with total

debt of less than 40 percent, an investment-grade credit rating, exceptional liquidity and a track record of financial discipline,” he said. Gibson said ONEOK strives to set itself apart from similar companies by focusing on “providing services to our customers and producers … and how we can create long-term value for them, as well as for our shareholders. “We also concentrate on those things we do well, which is part of our vision to be a premier energy company,” he said. Gibson said ONEOK remains committed to key strategies that haven’t changed much over the years, including the execution of strategic acquisitions that provide longterm value. He expects the company to benefit from the growth of ONEOK Partners and continued strong performance of its own distribution and energy services segments. “ONEOK expects to grow its net income by 8 to 10 percent, increase its dividend by 50 to 60 percent and to generate $150 (million) to $200 million a year in free cash flow — all over the next three years,” Gibson said.

OKLAHOMA INC.

THE OKLAHOMAN | NEWSOK.COM

SUNDAY, NOVEMBER 14, 2010

Nimbleness gives an edge to ADDvantage NO. 9 | COMPANY RESPONDS ‘ON DEMAND’ TO CABLE NEEDS BY RICHARD MIZE Real Estate Editor richardmize@opubco.com

BROKEN ARROW — It was like switching from basic cable to the top-tier channel package. Despite a 2.1-percent dip in revenues, cable television equipment distributor ADDvantage Technologies Group jumped from No. 37 to No. 9 on the Oklahoma Inc. list of the state’s top publicly traded companies. The rankings were based on a year’s worth of data ending June 30. The recession hit the company’s customers in the United States and Latin America from top to bottom, “countries, companies and households,” David Chymiak, chairman, and Ken Chymiak, president and CEO, said in the company’s 2009 annual report. The Broken Arrow company, which has subsidiaries in eight other cities, still saw profits and positive cash flow, met debt obligations, paid down its line of credit and, last year, purchased 200,000-plus shares of its common stock in a buyback program. ADDvantage Technologies, which trades under the ticker symbol AEY on the Nasdaq exchange, saw earnings per share rise 21.2 percent over the year. Revenues dipped 2.1 percent, but total return increased 70.9 percent. The company employs 50 in Broken Arrow in the front office and at local subsidiary Tulsat Corp., and about 140 across all subsidiaries, which include NCS Industries Inc. in Warminster, Pa.; Tulsat-Atlanta LLC in Suwannee, Ga.; ComTech Services in Sedalia, Mo.; Tulsat-Nebraska Inc. in Deshler, Neb.; Tulsat Texas in New Boston, Texas; Tulsat-West in Oceanside, Calif.; and Broadband Remarketing International in Chambersburg, Pa. Regional distribution centers and technical service centers are important to the nimbleness that enables ADDvantage Technologies to respond immediately when a cable system needs the new or re-

Corporate headquarters of ADDvantage Technologies Group and one of its subsidiaries, Tulsat, distributors of cable television equipment, are at 1221 E Houston in Broken Arrow. PHOTO PROVIDED BY ADDVANTAGE TECHNOLOGIES GROUP

Ken Chymiak

furbished equipment the company supplies, Ken Chymiak said. The company sells and services “headend” equipment used by system operators to acquire, process and ready television signals, high-speed Internet data and telephony for further transmission; fiber-optic equipment used to get the headend output to multiple receiver sites; distribution equipment to get data into homes, apartments, hotels, offices, schools and other institutions; and digital converters and modems required by end users. The company never had an initial public offering and so it sidestepped the lengthy and complicated process of going public under close state and federal scrutiny. Brothers David and Ken Chymiak cofounded privately held Tulsat Corp. in 1985. In 1999, ADDvantage Technologies Group was created in a “reverse merger” between Tulsat and publicly traded but bankrupt ADDvantage Media Group. Tulsat became a wholly owned subsidiary of ADDvantage, a shell basically amounting to a cor-

porate organizational structure. The newly formed ADDvantage Technologies Group first traded on the American Stock Exchange, in 2002, but moved to Nasdaq in 2007. Nimbleness has given ADDvantage an advantage in the marketplace for cable equipment, Ken Chymiak said in an interview. The company’s “On Hand On Demand” business model, he said, keeps inventory warehoused, sometimes for lengthy periods — but then ADDvantage can, say, respond today to orders placed today. Having long-term, loyal employees with longtime connections across the cable TV business also lends stability to the company, he said. “The key is having the right people and having the inventory when people need it,” he said. Chymiak said ADDvantage had Motorola equipment on hand that even manufacturer Motorola didn’t have in stock and so was able to respond to damage to cable systems in New Orleans and along the Gulf Coast after Hurricane Katrina in 2005. More recently, the company was able to immediately respond to widespread damage in Mississippi, he said. Inventory turnaround is slow, he said, but margins are high, often higher even than equipment manufacturers’, in an industry where other companies are unwilling to pay the expense of long-term warehousing.

ONEOK Partners LP’s Grasslands natural gas processing facility in North Dakota.

ONEOK Partners realizing benefits NO. 10 | $2 BILLION CAPITAL INVESTMENT PROGRAM PAYING OFF BY JAY F. MARKS Business Writer jmarks@opubco.com

TULSA — ONEOK Partners LP is enjoying the fruits of a $2 billion capital investment program that was completed at the end of 2009. The partnership, whose principal owner is ONEOK Inc., significantly expanded its natural gas and natural gas liquids businesses with that investment. CEO John W. Gibson said 2010 was the first year that all of those projects contributed earnings. “During the first 10 months of 2010, we announced an additional $1.4 billion of projects at ONEOK Partners that will be completed over the next three years,” he said. “These projects, located primarily in the Bakken Shale in the Williston Basin, enable us to continue to meet needs of producers and customers, and deliver attractive returns to investors.” Officials with the mas-

ONEOK Partners LP’s natural gas liquids fractionation facility in Medford.

ter limited partnership expect those investments to boost earnings and distribution. “We recently announced that ONEOK Partners expects to grow its earnings before interest, taxes, depreciation and amortization by 14 to 18 percent over the next three years, resulting in a 1 cent-per-quarter distribution increase to unit

holders in 2011 and 5 to 10 percent annual distribution growth in 2012 and 2013,” Gibson said. He said ONEOK Partners likely will continue to grow through acquisitions and internal growth projects. Officials are committed to generating consistent and sustainable earnings through growth, Gibson said.

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OKLAHOMA INC.

SUNDAY, NOVEMBER 14, 2010

EnXnet statement may grab attention BY STEVE LACKMEYER Business Writer slackmeyer@opubco.com

TULSA — After a year in which EnXnet Inc. saw a 52.6 percent decline in earnings, the Tulsa company is being described by one financial analyst as just one of many penny-stock companies competing to draw attention from investors. Officials with EnXnet did not return calls to The Oklahoman, but in an October release the company indicated it has a promising future — thanks to an agreement struck with ACTIVECARD LLC for royalties from sales of MultiMedia Gift Cards based on the company’s patented ThinDiscs. Due to a confidentiality agreement, the company reported, the percentage of royalties from each card

sale cannot be disclosed. “We have secured our position with the royalty agreement and expect to begin cash flowing shortly,” Ryan Corley, chief executive officer of EnXnet, said in a statement published on the company’s website. “I am very excited about not only this arrangement but the many old and new projects that we have in the pipeline.” Financial analyst Jake Dollarhide isn’t surprised by such pronouncements. “In technology, you’re always looking to the future,” Dollarhide said. “For the shareholder, results are down. … From any point of view, it was just a terrible year to be a shareholder..” The challenge, Dollarhide said, is the ongoing struggles in the economy. “In sectors like technology, ones that cater to the

consumer discretionary market, they are much more susceptible to hiccups compared to a food, beverage companies or even a retail chain.” Dollarhide said EnXnet has “very cutting edge technology products” in terms of DVD formatting. “I could see why investors might want to get in at a low price and see this as the next great local emerging company,” Dollarhide said. “Anytime a company is under a dollar, it’s there for a reason. It might not mean it’s about to go insolvent; there might not be a lot of interest; they might not have the name (recognition). There are hundreds of thousands of penny stock companies competing for attention. And for a Tulsa company, they might get a better reception from local investors.”

OKLAHOMA INC. CONTRIBUTING This year’s Oklahoma Inc. was compiled from data provided by Capital IQ, a Standard & Poor’s business, with reports by Business reporters Don Mecoy, Jay F. Marks, Paula Burkes, Steve Lackmeyer, Susan Simpson and Richard Mize. Also contributing are graphic artists Chris Schoelen, The Oklahoman’s data team members Darla Lindauer and Margaret Muckleroy, with design by Deaven Coggins.

Best 1-year Total Return Rank

Company Name

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36

Dollar Thrifty Automotive Group Inc. Williams Partners LP Ram Energy Resources Inc Alliance Holdings GP LP Williams Pipeline Partners LP Gulfport Energy Corp ADDvantage Technologies Group Inc Continental Resources Inc ONEOK Inc. ONEOK Partners LP Alliance Resource Partners LP Unit Corp Magellan Midstream Partners LP Southwest Bancorp Inc Panhandle Oil & Gas Inc OGE Energy Corp. XETA Technologies Inc BOK Financial Corp Williams Cos Inc. (The) AAON Inc Helmerich & Payne Inc. Educational Development Corp Devon Energy Corp BancFirst Corp Chesapeake Energy Corp Pre-Paid Legal Services Inc. LSB Industries Inc PostRock Energy Corp Matrix Service Co Bronco Drilling Company Inc Sonic Corp Syntroleum Corp SandRidge Energy Inc Orchids Paper Products Co GMX Resources Inc GrayMark Healthcare Inc

One Year Total Return in Percent

Stock Price June 30, 2010

Stock Price June 30, 2009

205.4 163.6 158.4 96.4 89.3 73.1 70.9 60.8 53.2 51.5 49.5 47.2 44.2 36.9 36.2 34.5 34.5 28.6 19.9 19.0 18.9 15.4 12.9 8.1 7.0 4.4 -17.7 -17.8 -18.9 -21.7 -22.7 -26.5 -31.6 -36.7 -39.0 -40.0

42.61 43.62 2.07 35.17 32.32 11.86 2.82 44.62 43.25 64.29 44.97 40.59 46.75 13.29 26.43 36.56 3.16 47.47 18.28 23.31 36.52 5.51 60.92 36.49 20.95 45.49 13.31 4.72 9.31 3.35 7.75 1.64 5.83 13.00 6.49 1.20

13.95 18.06 0.80 19.19 18.06 6.85 1.65 27.75 29.49 45.79 32.50 27.57 34.76 9.76 19.63 28.32 2.35 37.67 15.61 19.92 30.87 5.10 54.50 34.58 19.83 43.59 16.17 5.74 11.48 4.28 10.03 2.23 8.52 20.55 10.64 2.00

Source: Capital IQ, a Standard & Poor’s Business

Best 2-year Total Return Rank

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36

Company Name

Dollar Thrifty Automotive Group Inc. Williams Pipeline Partners LP Williams Partners LP Orchids Paper Products Co Magellan Midstream Partners LP Alliance Holdings GP LP ONEOK Partners LP Educational Development Corp OGE Energy Corp. AAON Inc Southwest Bancorp Inc Pre-Paid Legal Services Inc. XETA Technologies Inc ONEOK Inc. Syntroleum Corp Alliance Resource Partners LP BOK Financial Corp ADDvantage Technologies Group Inc BancFirst Corp Panhandle Oil & Gas Inc Gulfport Energy Corp LSB Industries Inc Continental Resources Inc Sonic Corp Devon Energy Corp Helmerich & Payne Inc. Unit Corp Williams Cos Inc. (The) Matrix Service Co Ram Energy Resources Inc Chesapeake Energy Corp GrayMark Healthcare Inc Bronco Drilling Company Inc SandRidge Energy Inc GMX Resources Inc PostRock Energy Corp

Two Year Total Return in Percent

Stock Price June 30, 2010

Stock Price June 30, 2008

350.9 113.6 69.2 64.8 53.1 37.6 34.8 31.5 26.4 25.2 18.2 12.2 -1.6 -2.8 -4.1 -4.9 -7.2 -7.5 -10.8 -20.0 -28.0 -32.8 -35.6 -47.6 -48.3 -48.7 -51.1 -52.3 -59.6 -67.1 -67.4 -81.0 -81.8 -91.0 -91.2 -97.6

42.61 32.32 43.62 13.00 46.75 35.17 64.29 5.51 36.56 23.31 13.29 45.49 3.16 43.25 1.64 44.97 47.47 2.82 36.49 26.43 11.86 13.31 44.62 7.75 60.92 36.52 40.59 18.28 9.31 2.07 20.95 1.20 3.35 5.83 6.49 4.72

9.45 17.26 32.85 7.89 35.59 29.81 55.90 5.32 31.71 19.26 11.50 40.62 3.21 48.83 1.71 55.68 53.45 3.05 42.80 33.86 16.47 19.80 69.32 14.80 120.16 72.02 82.97 40.31 23.06 6.30 65.96 6.30 18.38 64.58 74.10 198.44

Source: Capital IQ, a Standard & Poor’s Business

THE OKLAHOMAN | NEWSOK.COM

Best revenue growth Rank

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36

Company Name

‘10 Total Revenues (in millions)

Percent Change in Revenues ‘09 to ‘10

Continental Resources Inc Magellan Midstream Partners LP Williams Partners LP ONEOK Partners LP Alliance Holdings GP LP Alliance Resource Partners LP GrayMark Healthcare Inc ONEOK Inc. OGE Energy Corp. Williams Cos Inc. (The) Pre-Paid Legal Services Inc. Educational Development Corp Williams Pipeline Partners LP Orchids Paper Products Co ADDvantage Technologies Group Inc Panhandle Oil & Gas Inc Southwest Bancorp Inc Dollar Thrifty Automotive Group Inc. BancFirst Corp BOK Financial Corp XETA Technologies Inc Gulfport Energy Corp Matrix Service Co GMX Resources Inc SandRidge Energy Inc AAON Inc Devon Energy Corp Helmerich & Payne Inc. LSB Industries Inc PostRock Energy Corp Sonic Corp Unit Corp Chesapeake Energy Corp Ram Energy Resources Inc Syntroleum Corp Bronco Drilling Company Inc

33.7 32.6 31.4 31.2 12.1 12.1 6.8 6.0 6.0 2.8 1.4 0.6 0.0 -1.5 -2.1 -4.4 -5.2 -5.5 -5.6 -6.5 -7.8 -8.5 -9.7 -12.3 -16.5 -16.7 -18.3 -18.9 -20.2 -24.8 -26.3 -28.0 -37.5 -41.7 -54.5 -61.5

906.078 1345.780 3083.394 8085.696 1378.479 1378.831 112.343 12825.295 3382.000 9312.000 463.325 28.575 0.000 93.917 45.740 50.623 165.898 1528.770 234.427 1398.879 75.478 103.445 635.784 93.144 691.366 226.560 9745.000 1678.422 541.880 107.448 568.972 740.942 8844.000 110.373 11.076 84.648

‘09 Total Revenues (in millions)

677.774 1014.951 2346.453 6165.201 1229.519 1229.940 105.223 12099.945 3191.000 9055.000 456.944 28.414 0.000 95.383 46.720 52.977 174.995 1617.792 248.419 1496.220 81.895 113.044 703.969 106.160 827.790 272.050 11925.000 2069.183 679.220 142.939 771.879 1029.119 14141.000 189.294 24.325 220.116

Source: Capital IQ, a Standard & Poor’s Business

Best price to earnings ratio Rank

Company Name

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36

Williams Cos Inc. (The) LSB Industries Inc Helmerich & Payne Inc. Continental Resources Inc Panhandle Oil & Gas Inc Williams Pipeline Partners LP Southwest Bancorp Inc ONEOK Partners LP Chesapeake Energy Corp AAON Inc Alliance Holdings GP LP Magellan Midstream Partners LP BOK Financial Corp Unit Corp Matrix Service Co BancFirst Corp Gulfport Energy Corp Sonic Corp ONEOK Inc. Williams Partners LP OGE Energy Corp. Educational Development Corp Dollar Thrifty Automotive Group Inc. Alliance Resource Partners LP Orchids Paper Products Co Devon Energy Corp Pre-Paid Legal Services Inc. ADDvantage Technologies Group Inc PostRock Energy Corp Bronco Drilling Company Inc SandRidge Energy Inc XETA Technologies Inc GMX Resources Inc GrayMark Healthcare Inc Ram Energy Resources Inc Syntroleum Corp

Price to Earnings Stock Price ‘10 Ratio June 30, June 30, Earnings 2010 2010 Per Share

34.5 33.3 30.9 29.2 25.4 22.9 20.4 19.7 18.2 16.1 15.4 15.0 14.9 14.9 14.3 14.1 14.1 14.1 13.6 13.3 13.0 12.8 10.0 9.7 9.0 8.8 8.1 7.1 -0.1 -1.1 -2.3 -3.3 -3.3 -9.2 -17.3 -32.8

18.28 0.53 13.31 0.40 36.52 1.18 44.62 1.53 26.43 1.04 32.32 1.41 13.29 0.65 64.29 3.26 20.95 1.15 23.31 1.45 35.17 2.29 46.75 3.11 47.47 3.19 40.59 2.73 9.31 0.65 36.49 2.58 11.86 0.84 7.75 0.55 43.25 3.19 43.62 3.28 36.56 2.81 5.51 0.43 42.61 4.25 44.97 4.66 13.00 1.45 60.92 6.89 45.49 5.60 2.82 0.40 4.72 -38.47 3.35 -2.92 5.83 -2.52 3.16 -0.95 6.49 -1.95 1.20 -0.13 2.07 -0.12 1.64 -0.05

Percent Change in Earnings Per Share ‘09 to ‘10

-32.9 -69.5 -70.9 178.2 46.5 -10.8 -9.7 -31.1 124.4 -11.6 35.5 89.6 8.1 189.2 -48.0 21.7 117.6 -37.5 15.2 64.0 6.0 -10.4 283.2 51.8 -9.4 139.0 2.2 21.2 52.8 -160.7 84.4 -733.3 88.9 -30.0 94.7 -145.5

Industry Sector

Energy Manufacturing Energy Energy Energy Energy Financial/Banks Energy Energy Manufacturing Energy Energy Financial/Banks Energy Energy Financial/Banks Energy Service Energy Energy Energy Service Service Energy Manufacturing Energy Service Technology Energy Energy Energy Service Energy Service Energy Energy

Source: Capital IQ, a Standard & Poor’s Business

Best earnings per share growth Rank

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36

Company Name

Dollar Thrifty Automotive Group Inc. Unit Corp Continental Resources Inc Devon Energy Corp Chesapeake Energy Corp Gulfport Energy Corp Ram Energy Resources Inc Magellan Midstream Partners LP GMX Resources Inc SandRidge Energy Inc Williams Partners LP PostRock Energy Corp Alliance Resource Partners LP Panhandle Oil & Gas Inc Alliance Holdings GP LP BancFirst Corp ADDvantage Technologies Group Inc ONEOK Inc. BOK Financial Corp OGE Energy Corp. Pre-Paid Legal Services Inc. Orchids Paper Products Co Southwest Bancorp Inc Educational Development Corp Williams Pipeline Partners LP AAON Inc GrayMark Healthcare Inc ONEOK Partners LP Williams Cos Inc. (The) Sonic Corp Matrix Service Co LSB Industries Inc Helmerich & Payne Inc. Syntroleum Corp Bronco Drilling Company Inc XETA Technologies Inc

Percent Change in Earnings Per Share ‘09 to ‘10

283.2 189.2 178.2 139.0 124.4 117.6 94.7 89.6 88.9 84.4 64.0 52.8 51.8 46.5 35.5 21.7 21.2 15.2 8.1 6.0 2.2 -9.4 -9.7 -10.4 -10.8 -11.6 -30.0 -31.1 -32.9 -37.5 -48.0 -69.5 -70.9 -145.5 -160.7 -733.3

‘10 Earnings Per Share

‘09 Earnings Per Share

4.25 2.73 1.53 6.89 1.15 0.84 -0.12 3.11 -1.95 -2.52 3.28 -38.47 4.66 1.04 2.29 2.58 0.40 3.19 3.19 2.81 5.60 1.45 0.65 0.43 1.41 1.45 -0.13 3.26 0.53 0.55 0.65 0.40 1.18 -0.05 -2.92 -0.95

-2.32 -3.06 0.55 -17.66 -4.72 -4.77 -2.26 1.64 -17.50 -16.11 2.00 -81.55 3.07 0.71 1.69 2.12 0.33 2.77 2.95 2.65 5.48 1.60 0.72 0.48 1.58 1.64 -0.10 4.73 0.79 0.88 1.25 1.31 4.06 0.11 -1.12 0.15

Source: Capital IQ, a Standard & Poor’s Business

OKLAHOMA INC.

THE OKLAHOMAN | NEWSOK.COM

Return on average equity Rank

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36

‘10 Return on Average Equity (in percent)

Company Name

Pre-Paid Legal Services Inc. Alliance Resource Partners LP Alliance Holdings GP LP Dollar Thrifty Automotive Group Inc. Williams Partners LP Gulfport Energy Corp Magellan Midstream Partners LP Continental Resources Inc AAON Inc Devon Energy Corp Orchids Paper Products Co ONEOK Inc. OGE Energy Corp. ONEOK Partners LP ADDvantage Technologies Group Inc Panhandle Oil & Gas Inc Educational Development Corp Williams Pipeline Partners LP Matrix Service Co BOK Financial Corp BancFirst Corp Unit Corp LSB Industries Inc Chesapeake Energy Corp Helmerich & Payne Inc. Williams Cos Inc. (The) Southwest Bancorp Inc Syntroleum Corp GrayMark Healthcare Inc GMX Resources Inc Bronco Drilling Company Inc XETA Technologies Inc Ram Energy Resources Inc SandRidge Energy Inc Sonic Corp PostRock Energy Corp

Average Common Equity (in millions)

‘10 Adjusted Net Income (in millions)

96.5 66.5 49.0 31.9 29.8 25.5 25.1 24.1 22.9 19.9 19.5 14.8 13.5 13.5 13.4 12.9 11.3 10.8 9.8 9.7 9.2 8.1 5.6 5.4 4.7 3.8 3.8 -10.4 -21.1 -21.6 -22.3 -25.8 -106.5 NM NM NM

57.518 237.944 136.943 111.113 635.427 36.186 267.167 258.649 24.835 3035.000 10.512 337.750 272.500 426.111 4.050 8.726 1.687 47.227 16.844 217.086 39.569 128.290 8.533 625.000 124.593 307.000 10.326 -2.957 -3.949 -51.196 -78.067 -9.658 -10.593 -474.883 33.442 -56.316

59.624 357.630 279.372 348.127 2129.569 141.758 1063.916 1075.072 108.370 15256.000 53.984 2274.811 2018.700 3165.511 30.284 67.583 14.955 436.956 172.500 2239.655 432.397 1592.506 151.165 11643.000 2649.734 7978.500 273.325 28.421 18.716 237.556 349.852 37.438 9.950 -110.651 -3.584 -66.312

SUNDAY, NOVEMBER 14, 2010

Largest revenues ‘10 Common Equity (in millions)

‘09 Common Equity (in millions)

67.856 391.110 294.859 467.856 4084.000 179.064 1215.648 1209.473 110.153 16830.000 67.035 2387.229 2098.100 3289.086 32.253 71.079 15.037 448.485 182.084 2428.738 445.592 1656.173 153.499 11750.000 2705.527 7633.000 307.944 33.979 17.791 256.285 312.954 32.759 5.751 -129.480 15.822 -59.786

51.393 324.151 263.886 228.398 175.138 104.452 912.185 940.672 106.587 13682.000 40.934 2162.393 1939.300 3041.935 28.316 64.088 14.873 425.427 162.916 2050.572 419.202 1528.840 148.830 11536.000 2593.942 8324.000 238.706 22.863 19.642 218.826 386.751 42.117 14.150 -91.823 -22.990 -72.839

Rank

Industry Sector

Service Energy Energy Service Energy Energy Energy Energy Manufacturing Energy Manufacturing Energy Energy Energy Technology Energy Service Energy Energy Financial/Banks Financial/Banks Energy Manufacturing Energy Energy Energy Financial/Banks Energy Service Energy Energy Service Energy Energy Service Energy

‘10 Total Revenues (in millions)

Company Name

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36

11I

ONEOK Inc. Devon Energy Corp Williams Cos Inc. (The) Chesapeake Energy Corp ONEOK Partners LP OGE Energy Corp. Williams Partners LP Helmerich & Payne Inc. Dollar Thrifty Automotive Group Inc. BOK Financial Corp Alliance Resource Partners LP Alliance Holdings GP LP Magellan Midstream Partners LP Continental Resources Inc Unit Corp SandRidge Energy Inc Matrix Service Co Sonic Corp LSB Industries Inc Pre-Paid Legal Services Inc. BancFirst Corp AAON Inc Southwest Bancorp Inc GrayMark Healthcare Inc Ram Energy Resources Inc PostRock Energy Corp Gulfport Energy Corp Orchids Paper Products Co GMX Resources Inc Bronco Drilling Company Inc XETA Technologies Inc Panhandle Oil & Gas Inc ADDvantage Technologies Group Inc Educational Development Corp Syntroleum Corp Williams Pipeline Partners LP

12,825.295 9,745.000 9,312.000 8,844.000 8,085.696 3,382.000 3,083.394 1,678.422 1,528.770 1,398.879 1,378.831 1,378.479 1,345.780 906.078 740.942 691.366 635.784 568.972 541.880 463.325 234.427 226.560 165.898 112.343 110.373 107.448 103.445 93.917 93.144 84.648 75.478 50.623 45.740 28.575 11.076 0.000

Source: Capital IQ, a Standard & Poor’s Business

Best dividends Rank

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17

Company Name

Dividend Yield June ‘10 (Percent)

Stock Price June 2010

Dividend Rate

9.6 7.0 7.0 6.2 6.0 5.3 4.3 4.1 4.0 2.7 2.5 2.1 1.5 1.4 1.1 1.1 0.5

5.51 44.97 64.29 46.75 43.62 35.17 43.25 32.32 36.56 18.28 36.49 47.47 23.31 20.95 26.43 60.92 36.52

0.53 3.16 4.48 2.88 2.63 1.86 1.84 1.34 1.45 0.50 0.92 1.00 0.36 0.30 0.28 0.64 0.20

Educational Development Corp Alliance Resource Partners LP ONEOK Partners LP Magellan Midstream Partners LP Williams Partners LP Alliance Holdings GP LP ONEOK Inc. Williams Pipeline Partners LP OGE Energy Corp. Williams Cos Inc. (The) BancFirst Corp BOK Financial Corp AAON Inc Chesapeake Energy Corp Panhandle Oil & Gas Inc Devon Energy Corp Helmerich & Payne Inc.

Source: Capital IQ, a Standard & Poor’s Business

Best proﬁt growth Rank

Company Name

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36

Dollar Thrifty Automotive Group Inc. Magellan Midstream Partners LP Unit Corp Continental Resources Inc Devon Energy Corp Chesapeake Energy Corp Gulfport Energy Corp Ram Energy Resources Inc GMX Resources Inc SandRidge Energy Inc PostRock Energy Corp Panhandle Oil & Gas Inc Alliance Resource Partners LP Williams Partners LP Alliance Holdings GP LP BancFirst Corp ADDvantage Technologies Group Inc ONEOK Inc. Southwest Bancorp Inc OGE Energy Corp. BOK Financial Corp Orchids Paper Products Co Pre-Paid Legal Services Inc. Educational Development Corp Williams Pipeline Partners LP AAON Inc ONEOK Partners LP Williams Cos Inc. (The) Sonic Corp GrayMark Healthcare Inc Matrix Service Co LSB Industries Inc Helmerich & Payne Inc. Syntroleum Corp Bronco Drilling Company Inc XETA Technologies Inc

Percent Change in Net Income ‘09 to ‘10

323.2 310.8 189.7 179.4 139.1 120.8 117.8 93.6 83.7 82.8 63.4 44.8 41.8 37.9 35.6 22.1 20.4 16.4 13.2 9.6 8.9 2.4 -7.3 -8.7 -9.8 -12.0 -18.6 -31.9 -36.7 -40.4 -48.5 -68.7 -70.9 -140.2 -163.8 -751.7

‘10 Net Income (in millions)

111.113 267.167 128.290 258.649 3064.000 661.000 36.186 -10.593 -45.398 -448.807 -56.316 8.726 238.635 635.427 136.943 39.569 4.050 337.750 14.491 272.500 217.086 10.512 57.518 1.687 47.227 24.835 426.111 307.000 33.442 -3.949 16.844 8.838 124.755 -2.957 -78.067 -9.658

‘09 Net Income (in millions)

-49.781 65.034 -143.029 92.567 -7843.000 -3172.000 -203.083 -166.211 -277.720 -2610.343 -153.808 6.028 168.287 460.938 101.023 32.412 3.365 290.171 12.805 248.600 199.275 10.265 62.066 1.848 52.373 28.220 523.206 451.000 52.798 -2.813 32.710 28.206 428.542 7.358 -29.598 1.482

‘10 Return on Average Equity (in percent)

31.9 25.1 8.1 24.1 19.9 5.4 25.5 -106.5 -21.6 NM NM 12.9 66.5 29.8 49.0 9.2 13.4 14.8 3.8 13.5 9.7 19.5 96.5 11.3 10.8 22.9 13.5 3.8 NM -21.1 9.8 5.6 4.7 -10.4 -22.3 -25.8

Source: Capital IQ, a Standard & Poor’s Business

Deals shift companies’ rankings BY DON MECOY Business Writer dmecoy@opubco.com

Several firms that were among last year’s listings of Oklahoma Inc. major companies do not appear in the rankings this year for a variety of reasons. Some, like North American Galvanizing & Coatings Inc. and Arena Resources, were acquired. Arena was bought out by another Oklahoma Inc. company, SandRidge Energy. North American Galvanizing was bought by a competitor. Hiland Holdings GP and

Hiland Partners LP were taken private by founder and major shareholder Harold Hamm, the Enid oilman who also is chairman of another Oklahoma Inc. company, Continental Resources Inc. Quest Energy Partners LP and Quest Resource Corp were combined into a new entity, PostRock Energy Corp., which debuts in the Oklahoma Inc. rankings this year. Two energy-related master limited partnerships were merged into affiliated businesses and among listed companies. Williams Pipeline Part-

ners LP was merged into Williams Partners LP, a $12 billion restructuring. Similarly, Magellan Midstream Holdings was dissolved and folded into Magellan Midstream Partners. Nasdaq removed Vaughan Foods’ stock from its listings after the Moore company’s shares failed to maintain the exchange’s minimum price standards. Finally, Osage Bancshares, which was required to become a public company several years ago because of the manner in which it was created, voluntarily delisted its stock.

Energy major Rank Company Name

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23

Continental Resources Inc Williams Partners LP Magellan Midstream Partners LP Gulfport Energy Corp Alliance Holdings GP LP Alliance Resource Partners LP ONEOK Inc. Ram Energy Resources Inc Unit Corp ONEOK Partners LP Williams Pipeline Partners LP Devon Energy Corp Panhandle Oil & Gas Inc OGE Energy Corp. Chesapeake Energy Corp Williams Cos Inc. (The) GMX Resources Inc SandRidge Energy Inc PostRock Energy Corp Matrix Service Co Helmerich & Payne Inc. Syntroleum Corp Bronco Drilling Company Inc

Score

One Year Total Return (Stock and dividends) in percent

3.00 4.67 6.67 7.33 7.33 9.00 9.67 9.67 10.00 10.00 10.33 11.67 12.00 12.33 13.67 14.00 15.00 15.33 15.67 17.33 17.67 21.67 22.00

60.8 163.6 44.2 73.1 96.4 49.5 53.2 158.4 47.2 51.5 89.3 12.9 36.2 34.5 7.0 19.9 -39.0 -31.6 -17.8 -18.9 18.9 -26.5 -21.7

Manufacturing major Rank Company Name

Score

One Year Total Return (Stock and dividends) in percent

1 2 3

1.67 1.67 2.67

-36.7 19.0 -17.7

Orchids Paper Products Co AAON Inc LSB Industries Inc

Rank

6 1 11 5 3 9 7 2 10 8 4 16 12 13 17 14 23 22 18 19 15 21 20

Percent Change in Revenues ‘09 to ‘10

33.7 31.4 32.6 -8.5 12.1 12.1 6.0 -41.7 -28.0 31.2 0.0 -18.3 -4.4 6.0 -37.5 2.8 -12.3 -16.5 -24.8 -9.7 -18.9 -54.5 -61.5

Percent Change in Earnings Per Share ‘09 to ‘10 Rank Rank.

1 3 2 12 5 6 7 21 19 4 10 16 11 8 20 9 14 15 18 13 17 22 23

178.2 64.0 89.6 117.6 35.5 51.8 15.2 94.7 189.2 -31.1 -10.8 139.0 46.5 6.0 124.4 -32.9 88.9 84.4 52.8 -48.0 -70.9 -145.5 -160.7

2 10 7 5 14 12 15 6 1 18 17 3 13 16 4 19 8 9 11 20 21 22 23

Source: Capital IQ, a Standard & Poor’s Business

Rank

Percent Change in Revenues ‘09 to ‘10

3 1 2

-1.5 -16.7 -20.2

Percent Change in Earnings Per Share ‘09 to ‘10 Rank Rank

1 2 3

-9.4 -11.6 -69.5

1 2 3

Source: Capital IQ, a Standard & Poor’s Business

Manufacturing OTC Rank Company Name

Greystone Logistics Inc

Score

One Year Total Return (Stock and dividends) in percent

-54.5

Rank

Percent Change in Revenues ‘09 to ‘10

-7.0

Percent Change in Earnings Per Share ‘09 to ‘10 Rank Rank

NC NR

Source: Capital IQ, a Standard & Poor’s Business

Energy OTC Rank Company Name

1 2 3

Blueknight Energy Partners LP Beard Co Reserve Petroleum Co

Score

1.67 2.00 2.33

Service major

One Year Total Return (Stock and dividends) in percent

35.5 -3.1 -20.1

Rank Company Name

Score

One Year Total Return (Stock and dividends) in percent

1 2 3 4 5 6 7

2.33 2.67 3.33 3.67 4.33 5.33 6.33

205.4 70.9 4.4 15.4 -40.0 34.5 -22.7

Dollar Thrifty Automotive Group Inc. ADDvantage Technologies Group Inc Pre-Paid Legal Services Inc. Educational Development Corp GrayMark Healthcare Inc XETA Technologies Inc Sonic Corp

Rank

Percent Change in Revenues ‘09 to ‘10

1 2 3

-13.5 -76.7 -10.6

Percent Change in Earnings Per Share ‘09 to ‘10 Rank Rank

2 3 1

8.9 340.0 -16.6

2 1 3

Source: Capital IQ, a Standard & Poor’s Business

Rank

Percent Change in Revenues ‘09 to ‘10

1 2 5 4 7 3 6

-5.5 -2.1 1.4 0.6 6.8 -7.8 -26.3

Percent Change in Earnings Per Share ‘09 to ‘10 Rank Rank

5 4 2 3 1 6 7

283.2 21.2 2.2 -10.4 -30.0 -733.3 -37.5

1 2 3 4 5 7 6

Source: Capital IQ, a Standard & Poor’s Business

Service OTC Rank Company Name

Score

One Year Total Return (Stock and dividends) in percent

1 Vaughan Foods Inc 2 Enxnet Inc NR Double Eagle Holdings Ltd

1.00 2.33 NR

0.0 -75.0 -43.8

Rank

Percent Change in Revenues ‘09 to ‘10

1 3 2

-1.7 -52.6 NA

Percent Change in Earnings Per Share ‘09 to ‘10 Rank Rank

1 2 NA

98.2 1 50.0 2 NA NA

Source: Capital IQ, a Standard & Poor’s Business

Financial major Rank Company Name

Score

One Year Total Return (Stock and dividends) in percent

1 2 3

1.67 2.00 2.33

36.9 8.1 28.6

Southwest Bancorp Inc BancFirst Corp BOK Financial Corp

Rank

1 3 2

Percent Change in Revenues ‘09 to ‘10

-5.2 -5.6 -6.5

Percent Change in Earnings Per Share ‘09 to ‘10 Rank Rank

1 2 3

-9.7 21.7 8.1

3 1 2

Source: Capital IQ, a Standard & Poor’s Business

If You Have Something To Sell Classified Can Do It — Call 475-3000

12I

SUNDAY, NOVEMBER 14, 2010

OKLAHOMA INC.

THE OKLAHOMAN | NEWSOK.COM

STATE COMPANIES LOST ABOUT 30,000 JOBS, BUT SIGNS OF IMPROVEMENT ARE SLOWLY BEGINNING TO EMERGE

Manufacturers took hit in 2010 BY SUSAN SIMPSON Business Writer ssimpson@opubco.com

No manufacturers made it onto the list of the state’s 10-best performing companies this year, and two companies that placed high last year fell considerably in rankings. Revenue losses were felt throughout the sector as companies lost orders and laid off workers, said Roy Peters, president of the Oklahoma Manufacturing Alliance. “We’ve lost some firms,” he said. “I don’t think we’ve lost a lot of companies totally, but we, of course, have lost a lot of employment.” Peters said employment has dropped from about 153,000 workers two years ago to 123,000 now among the state’s 4,200 manufacturing companies. But signs of improvement are emerging, he said. “They are beginning to see more overtime, which is a super signal that things are getting better,” Peters said. “We are hearing that the temp agencies are getting more orders for manufacturing orders and that companies are hiring back in small numbers.”

PROGRAM LURES MANUFACTURERS The state’s Quality Jobs incentive program has helped lure some new manufacturers to Oklahoma. Since July 1, five companies have pledged job growth tied to the program, which rebates up to five percent of new payroll to qualifying companies.

Still, it will take years to recover from the recession. Companies were forced to become more efficient, and may keep their workforces lean. According to the 2010 Manufacturers Register, sectors that lost jobs last year include housing and construction, rubber and plastic, textiles/apparel and printing/publishing. “Decreased demand continues to affect Oklahoma’s manufacturing sector,” said Tom Dublin, president of Manufacturers’ News Inc., which publishes the register. “However, we’re seeing fewer job losses than we did a year ago, and the state’s favorable business climate continues to help improve the outlook.” In this year’s Oklahoma Inc. ranking, Orchids Paper Products was listed second in 2009 but fell to 27th this year. Based in Pryor, Orchid uses recy-

Banking sector steady through slow recovery BY DON MECOY Business Writer dmecoy@opubco.com

Oklahoma’s three publicly traded banking companies typically don’t rank near the top or the bottom in the annual Oklahoma Inc. evaluations. This year is no different. All three publicly traded banking companies produced middling rankings in Oklahoma Inc., as they have tended to do historically. Banks tend to avoid volatility. “The banking environment in Oklahoma is best described by word stable,” said BancFirst Corp. CEO David Rainbolt. Southwest Bancorp, parent of Stillwater National Bank, posted the highest ranking among the state-based banking companies at No. 17. Its strongest showing was in oneyear total return, where it ranked 14th with a 36.9 percent total return. BOK Financial Corp., parent of Bank of Oklahoma, finished just behind Southwest Bancorp at No 18, with none of its three rankings higher than No. 18 nor lower than No. 20. BOK Financial was the largest commercial bank in the country that didn’t take money through the federal Trouble Asset Relief Program. BancFirst landed at No. 22, with no ranking higher than No. 16 nor lower than No. 24. BancFirst is Oklahoma’s largest statechartered bank. The onset of the Great Recession came late to Oklahoma and has been less severe, in part because housing values were relatively stable and lending practices were generally conservative. While local banks have been forced to deal with problem credits, the damage has been limited by lending practices learned a generation ago in the wake of the Penn Square Bank debacle. “We continue to manage our loan portfolio through this difficult credit climate with our ongoing, disciplined workout process focused on addressing the challenges of the commercial real estate construction and commercial mortgage sectors,” said Southwest Bancorp CEO Rick Green. “We are encouraged that the state economic factors for our principal markets in Oklahoma, Texas, and Kansas

David Rainbolt

Steven Nell

continue to outperform most of the nation.” In Oklahoma, deposits have grown faster than in other parts of the country as investors look for cash havens while evaluating riskier prospects during the economic recovery. Oklahoma bank deposits grew 2.4 percent in the past year. But loan demand continues to lag, said Steven Nell, chief financial officer of BOK Financial. “We’re still seeing a drop-off in our loan balances,” Nell said. “If you were to see a pickup in loan balances that would probably be a better indicator of economic improvement.” While many individuals and businesses may be in a better financial position these days, uncertainty likely is limiting spending and borrowing, Nell said. “There’s still a lot of uncertainty out there — uncertainty about the political direction,” he said. “Uncertainty with all of these financial regulations out there. Uncertainty about the unemployment in the country and how long it will stay at elevated levels. Another example would be the taxes, uncertainty about what’s going to happen in the future. Still uncertainty around health care costs in the future,” Nell said. Rainbolt remains cautiously optimistic. “In the long term, I’m very positive about Oklahoma’s economy — no doubt,” Rainbolt said. “It may be more than a short amount of time before that manifests itself. I don’t think it’s going to be quick turnaround.”

cled waste paper to produce finished tissue products for retail chains throughout the central United States. Company President Robert Snyder declined to comment about the company’s performance and dip in profits this year. AAON Inc. fell from fifth to 29th in the ranking. The Tulsa-based heating and air conditioning manufacturer has been hit by a slow commercial construction market. In August, company CEO Norman Asbjornson said the outlook for the rest of 2010 is “challenging” but the company continues to invest in equipment and facilities and will introduce new products to position it for an industry upturn.

AAON makes heating and air-conditioning equipment in Tulsa.