Manufacturing tops the list BY DON MECOY Business Writer dmecoy@opubco.com
More than two-thirds of the Oklahomabased public companies ranked in Oklahoma Inc. — and 11 of the top 12 performers — are in the energy sector. Which makes this year’s top performer an outlier. Overall No. 1 LSB Industries is an Oklahoma City-based manufacturer of chemicals and climate control devices such as heat pumps.
LSB tops ratings LSB Industries, ironically, survived the oil bust of the 1980 by reducing its dependence on energy-related firms. In the July 2010 through June 2011 period tracked by Oklahoma Inc., LSB Industries earned the highest rankings in two of the three categories that produce the overall rankings. The next 11 companies in the rankings all are in energy, although those companies operate with various business models. The energy sector as a share of the state’s gross domestic product and personal SEE ENERGY, PAGE 2I
LSB Industries tops rankings PAGE 3I
Energy industry shines PAGE 5I
PHOTO BY STEVE GOOCH, THE OKLAHOMAN
Deals move companies into and out of rankings PAGE 7I
Banking firms offer different strategies PAGE PAGE 12I 12I
ILLUSTRATION BY DEAVEN COGGINS, THE OKLAHOMAN
Energy: Sector has been catalyst for economic growth
A look at ClimateMaster, a subsidiary of LSB Industries, in Oklahoma City. PHOTOS BY STEVE GOOCH, THE OKLAHOMAN
FROM PAGE 1I
income is nearly as large now as it was in 1981, Federal Reserve economist Chad Wilkerson said. The oil bust of the early 1980s threw Oklahoma into a recession that lasted for years, which Wilkerson said raises the question of whether that sector should be so dominant. “It’s been an outstanding thing certainly for the last year, probably for the past five years,” Wilkerson said. “States concentrated in energy have generally grown faster than other states in the long run.” Energy activity has been the main catalyst for Oklahoma’s recent economic growth, and helped delay the state’s entry into the last recession, he said. “Of course, it comes with the huge risk of something happening like what happened here in the 1980s,” he said. But most analysts and futures markets indicate that crude oil and natural gas prices should remain steady for the foreseeable future, Wilkerson said. Investors in those topranking energy companies during the past year have been rewarded, although not nearly at the rate of those with a stake in LSB Industries, which produced a 223 percent return.
Rankings explained While shareholders are most interested in the re-
SCAN IT Take a look inside one of the production plants of this year’s top-ranking Oklahoma Inc. company, LSB Industries. Scan the QR code of visit News OK.com to see the video.
turn 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. As noted above, LSB Industries was a clear leader in this category. LSB also topped the rankings in terms of earnings per share growth, registering a robust 725 percent gain. Oklahoma City’s SandRidge Energy recorded the biggest gain in revenue at nearly 76 percent.
Top major companies Prior Rank 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
33 7 25 31 6 5 15 10 23 14 8 4 3 16 29 2 26 22 32 21 1 18 13 NR 34 12 20 27 24 NR 9 17 28 35
LSB Industries Inc Gulfport Energy Corp SandRidge Energy Inc Helmerich & Payne Inc. Alliance Resource Partners LP Alliance Holdings GP LP Unit Corp ONEOK Partners LP Chesapeake Energy Corp OGE Energy Corp. ONEOK Inc. Magellan Midstream Partners LP DollarThriftyAutomotiveGroupInc. Devon Energy Corp AAON Inc Williams Partners LP PostRock Energy Corp BancFirst Corp Matrix Service Co Williams Cos Inc. (The) Continental Resources Inc BOK Financial Corp Panhandle Oil & Gas Inc SemGroup Corp Sonic Corp Ram Energy Resources Inc Educational Development Corp Orchids Paper Products Co GMX Resources Inc Blueknight Energy Partners LP ADDvantageTechnologiesGroupInc Southwest Bancorp Inc GrayMark Healthcare Inc Syntroleum Corp
Score
The Oklahoma Inc. methodology rewards companies that grow quickly, boost profits and benefit shareholders. Typically it is rare for a corporation to do all three simultaneously. However, this year’s top eight overall companies ranked in the top 10 in each of the three categories. In our latest rankings, there is a clear divide between the good, the not so good and the poor performers.
Best of the rest Gulfport Energy Corp., an Oklahoma City producer of oil and natural gas, claimed the No. 2 ranking with the secondbest performance in shareholder return and revenue growth combined with a No. 4 ranking in earnings growth. SandRidge, in addition to its top performance in revenue growth mentioned above, earned the No. 3 overall ranking by finishing in the top five across the board. Helmerich & Payne, the longtime Tulsa-based contract oil and natural gas driller, earned points for consistency with top four rankings in all three categories. Alliance Resource Partners LP, a coal producer and marketer based in Tulsa, ranked fifth in shareholder returns, seventh in revenue growth and eighth in earnings growth to claim the No. 5 Oklahoma
One Year Total Return (Stock and dividends) in percent Rank
2.00 2.67 3.00 3.33 6.67 8.67 8.67 11.67 13.00 14.33 14.67 15.00 15.33 15.67 16.00 17.00 17.33 18.67 18.67 18.67 20.33 20.67 22.33 22.33 23.00 23.33 24.00 24.67 24.67 26.00 28.33 30.00 32.00 32.33
Percent Change in Revenues ‘10 to ‘1
Rank
Percent Change in Earnings Per Share ‘10 to ‘11
ClimateMaster employee Mike Molina assembles an air coil in Oklahoma City. ClimateMaster’s Omar Martinez operates the turret punch press.
Inc. ranking. Economic concerns, including a potential default
on U.S. debt, have dominated headlines and affected markets since June
AT A GLANCE Rank
222.5 1 33.6 4 725.0 1 150.3 2 67.5 2 97.6 4 82.8 3 75.9 1 96.4 5 81.9 4 43.5 3 214.4 3 81.3 5 24.0 7 57.3 8 48.3 10 24.0 6 39.7 10 50.1 9 33.6 5 30.4 12 40.6 16 20.0 10 44.0 9 43.3 13 7.3 15 30.4 11 42.2 15 11.5 14 17.4 14 77.3 6 6.7 18 -4.7 20 34.8 18 21.2 9 -3.5 18 73.1 7 0.5 22 -1.2 17 30.5 20 1.1 21 96.4 6 42.3 14 14.6 12 -23.8 22 31.5 19 12.4 13 -4.3 19 23.6 21 -7.8 29 496.3 2 8.4 24 6.8 17 9.7 15 43.7 12 2.4 20 -44.3 24 69.2 8 7.2 16 -277.4 32 45.5 11 -3.2 24 -64.1 26 17.8 22 -4.8 27 18.2 13 12.8 23 -6.8 28 1.9 16 -2.2 27 16.9 11 -101.0 29 37.2 17 -3.3 25 -65.5 27 -39.6 33 -8.8 30 58.3 7 6.2 25 -4.8 26 -23.3 21 -1.1 26 -1.2 23 -60.7 25 -31.4 32 22.7 8 -482.5 34 -4.2 28 6.0 19 -219.6 31 -7.8 29 -15.7 33 -35.0 23 -26.3 31 -9.0 31 -73.8 28 -74.0 34 -12.5 32 -203.3 30 -10.4 30 -55.6 34 -340.0 33
Market Value (in Millions) June 30, 2011
951.794 1,409.681 4,369.726 7,073.981 2,848.301 2,985.967 2,934.389 8,692.753 19,530.854 4,930.001 7,661.959 6,733.781 2,138.829 32,942.579 538.793 15,738.044 49.141 589.538 353.727 17,787.000 11,718.008 3,749.719 243.145 1,068.847 658.284 98.901 20.962 94.748 264.285 277.411 26.538 190.308 18.165 120.508
‘11 Total Revenues (in Millions)
724.215 173.285 1,215.923 2,402.100 1,710.265 1,709.904 1,009.592 9,700.602 9,486.000 3,772.500 13,680.317 1,630.916 1,536.079 9,855.000 259.701 6,075.000 99.064 250.448 604.149 9,972.000 877.511 1,332.045 44.866 1,589.602 550.036 100.712 27.212 92.837 114.245 161.763 38.555 150.943 19.354 4.919
‘11 Net Income (in Millions)
‘11 Return on Average Equity (in percent)
71.395 35.0 75.432 28.7 17.485 -4.7 395.811 13.3 354.126 74.1 192.001 58.4 169.002 9.7 605.852 18.4 1,128.000 7.9 321.600 14.3 323.641 14.1 338.050 25.3 120.689 22.5 5,811.000 30.3 18.444 16.0 1,179.000 25.8 41.468 NM 43.434 9.5 9.070 4.8 -541.000 -7.0 96.042 6.0 256.880 10.0 8.886 12.1 -32.626 -3.8 11.594 43.3 -3.705 -70.5 1.280 8.7 4.199 6.1 -211.343 -96.4 -18.756 NM 2.656 7.9 7.672 1.1 -19.990 -156.3 -18.299 -63.2
Industry Sector
Manufacturing Energy Energy Energy Energy Energy Energy Energy Energy Energy Energy Energy Service Energy Manufacturing Energy Energy Financial/Banks Energy Energy Energy Financial/Banks Energy Energy Service Energy Service Manufacturing Energy Energy Technology Financial/Banks Service Energy
SOURCE: SOURCE: S&PCAPITAL CAPITALIQIQ
Top OTC companies Prior Rank Rank Company Name
1 2 3 4 5 6
4 3 NR NR 5 1
Reserve Petroleum Co Beard Co Avalon Correctional Services Inc Greystone Logistics Inc Enxnet Inc Vaughan Foods Inc
Score
2.7 3.0 3.0 3.7 4.0 4.7
One Year Total Return (Stock and dividends) in percent Rank
80.9 -73.5 -12.5 -36.4 -58.3 -35.2
1 6 2 4 5 3
Percent Change in Revenues ‘10 to ‘11
Percent Change in Earnings Per Share ‘10 to ‘11 Rank
4.1 220.1 12.1 22.7 -100.0 3.2
4 36.0 1 52.6 3 -10.7 2 -450.0 6 110.0 5 -1400.0
30, the date that these corporate numbers were compiled.
Rank
Market Value (in Millions) June 30, 2011
‘11 Total Revenues (in Millions)
‘11 Net Income (in Millions)
3 2 4 5 1 6
58.765 8.428 11.900 1.828 2.152 3.705
12.605 1.149 26.453 19.313 0.000 97.704
4.727 -1.977 6.375 -0.865 -0.220 -1.335
‘11 Return on Average Equity (in percent)
18.1 NM 42.7 NM NM -15.9
Industry Sector
Energy Energy Service Manufacturing Technology Service
SOURCE: CAPITAL IQIQ SOURCE: S&P CAPITAL
RANKING METHODS Oklahoma Inc. rankings are based on three measures: Revenue growth, per-share earnings growth and total return to shareholders, including the reinvestment of dividends. Those with the best composite score of those measures over the one-year period rise to the top of the overall rankings. A financial research group at Standard & Poor’s gathers the data from each company’s 10-K filing and annual report. The data is screened to determine which ones pass the criteria to be in the report. The Oklahoma companies are ranked for the 12month period ended June 30. Growth is measured according to how quickly revenue grew. Profitability is measured according to each company’s percentage change in earnings per share. Percent change in earnings per share also acts as a tiebreaker for companies that produce identical overall ranking scores. To measure the benefit to shareholders, Standard & Poor’s ranked companies according to their change in share price from July 2010 through June 2011. Reward to shareholders includes both stock price movement and dividends. DON MECOY, BUSINESS WRITER
LSB Industries tops rankings, but leaders don’t seek limelight NO. 1 | COMPANY REINVENTED ITSELF BY DON MECOY Business Writer dmecoy@opubco.com
LSB Industries isn’t among the most highprofile companies in Oklahoma, and that’s the way founder and Chairman Jack Golsen likes it. “Spouting whales get harpooned,” Golsen said. “So we’ve kept a low profile.” That’s probably just fine with LSB’s shareholders, who earned a 222 percent return on their investments in the one-year period covered by the Oklahoma Inc. figures. Among Oklahoma’s publicly traded companies, LSB Industries topped that category, ranked No. 1 in per-share earnings growth and posted the fourth-highest growth rate for revenues in the period. That’s as close as a state company has come to sweeping the Oklahoma Inc. measures, and Golsen concedes the company had a good year. “These are the best of times,” he said. LSB Industries, which employs about 1,500 Oklahomans, is thriving today in part because of tough choices its leaders were forced to make in the worst of times, Golsen said. The company has been public since 1969, and was profitable until the oil bust that laid low many Oklahoma businesses in the early 1980s. That regional recession nearly took down LSB Industries, which saw its revenue cut in half in 1982 as much of its oil-related manufacturing business dried up. “There was a lot of determination involved,” said CEO Barry Golsen, son of Jack. “Companies and banks were going down all around us.” The company survived by diversifying, drastically reducing its exposure to the energy business. LSB added a chemical business — “a complete departure” — that remains a major component of the firm, Barry Golsen said. LSB initially produced chemicals strictly for farming, and later added industrial and mining chemicals while significantly expanding its production through the acquisitions of additional plants. LSB’s climate control operation, originally a small part of the business, has become the other major unit of the company. “We reinvented ourselves,” Barry Golsen said. The remade business has been “stable and growing.” The overhaul took determination, a strong and stable core of managers and patience. “It took a lot of time,” Jack Golsen said. The company’s geothermal heat pump offer-
Jack Golsen, chairman, left, and Barry Golsen, CEO of LSB Industries, stand in front of one of the assembly lines at ClimateMaster in Oklahoma City. PHOTO BY PAUL HELLSTERN, THE OKLAHOMAN
ClimateMaster employee Mara Puentes assembles a reheat unit in Oklahoma City. PHOTO BY STEVE GOOCH, THE OKLAHOMAN
ings now are among the industry’s best, the Golsens said. The system that controls the comfort of Oklahoma’s Capitol was produced by LSB, and cut the state’s energy costs there by about $250,000 a year. LSB’s products heat and cool structures from single-family homes to major office buildings to the Statue of Liberty. Over the past decade, the company’s leaders have sharpened the firm’s focus by growing its two main units and strengthened the balance sheet. “We’ve positioned ourselves to be able to weather any storm in the economy and positioned ourselves also to make any kind of capital improvements that are necessary to grow the businesses, and we’re in the position to do a strategic acquisition if the right kind of acquisition comes along,” Barry Golsen said. The Oklahoma City
AT A GLANCE LSB’S OKLAHOMA CONNECTIONS I Founded in Oklahoma with corporate headquarters in Oklahoma City. I Seven climate control manufacturing and distribution facilities. Covering more than 1 million square feet in Oklahoma City. I Industrial Products Distribution facility in Oklahoma City. I Pryor Chemical Co. in Pryor. I About 1,500 of LSB’s 1,900 total employees work in Oklahoma.
WHERE DID THE NAME LSB COME FROM? One of Jack Golsen’s earliest companies, L&S Bearing Manufacturing Co., made products for the Big Three automakers and the retail auto markets. Each box of the firm’s bearings, many of which were displayed on the shelves of auto supply stores, bore the company’s initials — LSB. Threeletter company names (such as ITT and LTV) were in vogue, and Golsen determined that company would be called “LSB.” The company no longer makes bearings, although LSB’s headquarters remain in the same building alongside Interstate 40 west of downtown Oklahoma City.
company has succeeded by following a traditional model of making tangible things and selling them, but its leaders aren’t hidebound. “If you look at our plants, they are really state-of-the-art,” Barry Golsen said. “We’re oldfashioned in the sense that we make stuff, but we’re not old-fashioned in the way that we make it.”
ClimateMaster press break operator Carlos Perales in Oklahoma City. PHOTO BY STEVE GOOCH, THE OKLAHOMAN
Gulfport searching globe for oil NO. 2 | OKC-BASED COMPANY MAINTAINS PLACE IN STATE’S TOP 10 CORPORATE LIST BY JAY F. MARKS Business Writer jmarks@opubco.com
Gulfport Energy Corp. is all about finding crude oil, no matter where it has to go to find it. The Oklahoma Citybased company is active in Louisiana, Texas, Colorado and Ohio, with international operations in Thailand and Canada’s oil sands. “We’ve actually always had an oil bias,” Gulfport Chief Financial Officer Mike Moore said. Moore said the company continues to try to identify more oily plays to add to its asset base. That likely helped Gulfport rise to No. 2 on the Oklahoma Inc. list of the state’s top companies, fueled by a 150.3 percent increase in total returns. Gulfport was No. 7 on the list last year, making it one of only four companies to maintain a place in the top 10. CEO Jim Palm said 90 percent of Gulfport’s production is oil, including sweet crude from Louisiana that sells at about a $25 premium to the West Texas Intermediate produced in Oklahoma and surrounding states. Palm said he is optimis-
tic that Gulfport’s production will increase in the future because of its investment in Grizzly Oil Sands LLC, a joint venture with a Connecticut hedge fund. Officials have identified about 2 billion barrels of recoverable oil in Grizzly’s holdings, despite only exploring about 35 percent of its acreage. Production in Canada is set to begin in 2013 after a $400 million facility is completed there. Gulfport officials said the company’s share of that expense is manageable. Gulfport also has acquired acreage in Ohio’s Utica Shale, one of the nation’s hottest new oil plays. “That’ll be our big growth area next year,” Palm said. The company intends to drill 1,000 wells there in the next few years. He said Gulfport aims to buy into areas with a lot of oil in place, using new technology like directional drilling to extract as much of it as possible. Palm said the Niobrara Shale in Colorado and Wyoming has seen lots of activity, but some of the buzz has gone away. Gulfport has some holdings in northwest Colorado, where Palm said
Gulfport Energy Corp. CEO Jim Palm rang the opening bell April 12 at the NASDAQ Market Center in New York. PHOTO PROVIDED
the company will begin drilling aggressively by next spring. It currently is interpreting data from scientific wells on the company’s acreage. Moore said Gulfport will
continue to focus on crude oil exploration, despite the commodity’s price fluctuations. “It’s a world commodity with world demand,” he said. But he would not rule
out a switch to increased natural gas production, if conditions are right. Investors seem to like Gulfport the way it is, with the market valuing the company for its strong balance sheet.
“Right now we have no debt,” Moore said. He said the company tends to be conservative. It raises money for acquisitions, not operations. “We drill out of cash flow,” Moore said.
Oklahoma manufacturing industry rebounds BY JENNIFER PALMER Business Writer jpalmer@opubco.com
Recovery is well on its way for Oklahoma’s manufacturing industry, evidenced in part by a manufacturing company snagging the top spot on our 2011 list of the state’s best performing companies. LSB Industries climbed an impressive 32 slots to No. 1. The Oklahoma Citybased company makes commercial and residential heating and air conditioning systems — such as geothermal and water source heat pumps, as well as chemicals for mining and agriculture. Another heating and air conditioning manufacturer, Tulsa’s AAON Inc., jumped from 29th to 15th place. And Orchids Paper
LARGE PART OF STATE WORKFORCE Oklahoma’s close to 4,000 manufacturing companies employ 130,000 workers, said Mike Seney, senior vice president for The State Chamber of Oklahoma, making up 10 percent of the state’s workforce.
Products in Pryor, which produces tissue products made from recycled paper, slipped just one spot to 28. Tony Shelby, chief financial officer at LSB, said the climate control segment of its business took a hit during the recession but has been picking up. In 2009, business was down 15 percent and last year, it was down another 6 percent. “Considering the severity of the recession, that was pretty respectable,” he said. But by the first half of
2011, climate control sales were up 19 percent year over year. LSB has 1,900 total employees; 1,500 of those work in Oklahoma, where the company has seven production plants, a financial center and its corporate office.
Gaining jobs Oklahoma manufacturers added at least 10,000 jobs this year, said Chuck Prucha, president of the Oklahoma Manufacturing Alliance. The state’s strongest in-
dustries include oil and gas and aerospace, both of which support manufacturing. Employment is one good measure of the industry, but another is productivity, which continues to improve, Prucha added. “Oklahoma has not taken the same hit in manufacturing as everyone else,” he said. But in some cases, businesses will continue to keep payrolls lean rather than add workers. “When you enter an economic downturn, companies learn to do more with less,” said Mike Seney, senior vice president for The State Chamber of Oklahoma. Companies may have dropped a third shift or decreased overtime, and resist bringing it back until production merits it, he said.
SandRidge switch to oil reaps gains NO. 3 | REVENUE SEES STATE-BEST 75.9 PERCENT RISE BY JAY F. MARKS Business Writer jmarks@opubco.com
SandRidge Energy Inc.’s decision to morph itself into an oil company is paying dividends. CEO Tom Ward said the shift that began in 2008 has fueled the Oklahoma City company’s success. SandRidge ranked No. 3 on this year’s Oklahoma Inc. list of top public companies in the state, with a best-in-Oklahoma 75.9 percent increase in revenues over last year. SandRidge recently celebrated its 180-degree turn as an exploration and production company with a new logo and slogan. “Our focus will continue to be oil,” Ward said. “It’s very difficult to change focus like we did. “Crude oil is a world market and that’s what we want, to be able to sell into a world market.” Eighty percent of SandRidge’s production was natural gas in 2008, when prices dropped precipitously. The company hedged all of its future gas production and set about amassing oil assets. Ward said SandRidge has focused on low-risk oil targets in shallow reservoirs that can be reached with conventional wells. “We’ve always tried to find things that other people weren’t necessarily doing at the time,” he said. Ward said areas like the Permian Basin in Texas and Mississippian play in Oklahoma and Kansas were overlooked by other producers eager to find the next big unconventional play. He said SandRidge liked the production history and good permeable rocks in those areas. Producers have been finding oil in the Permian for more than 80 years, while the Mississippian has been productive for more than 30 years. Ward said SandRidge has a 10-year inventory of drilling sites in the Central Basin Platform of the Permian. He expects the company to have close to 2 million acres of leasehold in the Mississippian by the end of the year, with an eye toward lining up another decade’s worth of drilling
An artist’s drawing of SandRidge Energy Inc.’s new headquarters being developed in downtown Oklahoma City.
DRAWING PROVIDED
SandRidge Energy Inc. has leased more than 1.5 million acres in the Horizontal Mississippian play of northern Oklahoma and southern Kansas. PHOTO PROVIDED
opportunities. “That means a very aggressive drilling schedule,” Ward said. “We’ll have 45 rigs working in the Mississippian play in Oklahoma and Kansas in the next two years. Today we have 18. That’s why you have very low unemployment in Oklahoma.” Ward also said SandRidge will continue to focus on conventional plays like the Permian where drilling costs are lower because of the surplus of equipment available.
“I believe it’s the most inexpensive play to drill in the United States that has scale,” Ward said. About the same time SandRidge decided to turn its business model upside down, the company moved its base of operations to downtown Oklahoma City. SandRidge has resided in downtown Oklahoma City since Ward swung a deal with former partner Aubrey McClendon to acquire the Kerr-McGee tower in July 2007.
Now the company is in the midst of a dramatic renovation plan that calls for construction of one new building at 120 Robert S. Kerr Ave. and replacement of six remaining structures with landscaped plazas. The development dubbed “SandRidge Commons” is expected to add usable open space to downtown through the replacement of old blighted buildings while providing room for SandRidge’s growing workforce.
SandRidge focuses on low-risk oil targets in shallow reservoirs that can be reached with conventional wells, CEO Tom Ward said. PHOTO PROVIDED
Energy industry shines as state economy’s cornerstone BY JAY F. MARKS Business Writer jmarks@opubco.com
Oklahoma is an energy state. This year’s Oklahoma Inc. rankings leave no doubt of that, with nine of the top 10 companies doing business in the energy industry. Sixteen of the top 20 are energy companies. “It is no surprise that energy dominates the top companies,” Oklahoma Energy Secretary Mike Ming said. “Not widely recognized in many nonenergy-producing areas of the country is that our nation is literally in an energy supply revolution. “Technologies developed to unlock natural gas from source rocks previously considered unproduceable continue to drive down costs and push up future estimates of recoverable resources.” Ming said companies in Oklahoma were at the forefront of the industry’s technology revolution. Now they are using those new methods to find success in formerly marginal areas of Oklahoma. Oklahoma Independent Petroleum Association Chairman Robert Sullivan called the oil and gas industry the “cornerstone” of the state’s economy. “Through the use of new and improved oil-field technology, the future of the in-
dustry is brighter than ever.” A recent study commissioned by the Oklahoma Energy Resources Board indicated the oil and gas industry was responsible for nearly 300,000 jobs in Oklahoma and injected as much as $51 million into the state’s economy. The study by Oklahoma City University’s Steven C. Agee Economic Research and Policy Institute was based on data from 2009. Executive director Russell Evans said drilling activity and oil production in Oklahoma are on the rise, as the industry has helped the state recover nearly 8,500 of the 13,000 jobs lost during the recession, according to the Bureau of Labor Statistics. “The energy sector is reasserting itself as the cornerstone industry in the state’s economy and should maintain that position for the foreseeable future,” Evans said. Sullivan and Evans joined Ming in citing technological advances as the impetus for the industry’s renaissance in Oklahoma and nationwide. “Horizontal drilling, the driving force behind opening vast, new natural gas fields across the country in the past
decade, is now being used to revitalize historic oil fields, including those in Oklahoma,” Sullivan said. Formations like the Mississippi Lime in northern Oklahoma and southern Kansas had been considered to be depleted of recoverable oil years ago, he said, but now companies like Oklahoma City-based SandRidge Energy Inc., Chesapeake Energy Corp. and Devon Energy Corp. are using horizontal drilling to unlock additional oil and gas reserves. “Improved drilling techniques and hydraulic fracturing also are driving new investment in other oil and natural gas-rich areas of the state,” Sullivan said. He said the Woodford Shale, a rock formation that stretches nearly the length of the state, offers a variety of untapped resources, from natural gas in the southeastern part of the state to the oil rich Cana Woodford in central Oklahoma. Western Oklahoma is also seeing a rise in the exploration and production of oil and natural gas as producers search for liquids-rich natural gas in the Granite Wash, Sullivan said.
“Increased exploration and production is why the oil and natural gas industry will remain the defining industry of Oklahoma, supporting nearly 300,000 workers and generating $7.6 billion in labor income,” he said. The industry’s revival has benefitted from more than just oil and gas companies operating in the state. “For the 2011 fiscal year, the state’s oil and natural gas producers paid gross production taxes on oil and natural gas in excess of $978 million to fund education, build roads and provide health care,” Sullivan said. “Combined with personal and corporate income taxes, motor vehicle taxes, ad valorem taxes and other fees incurred by oil and natural gas producers and the companies that support them, the oil and natural gas industry in Oklahoma accounts for an estimated 22 percent of all taxes paid to the state.” Sullivan said it is in Oklahoma’s best interest to support the oil and gas industry. “A prosperous oil and natural gas industry makes for a prosperous Oklahoma,” he said. It is the engine that drives our state’s economy and is a key component in our state’s push toward economic recovery.”
COMPANY PROFILES 1. LSB INDUSTRIES INC. I Address: 16 S Pennsylvania Ave., Oklahoma City, OK 73107 I Phone: 235-4546 I Website: www.lsb-okc.com I Ticker: LXU I Exchange: NYSE I At the top: Jack E. Golsen I Employees: 1,900 I Industry: Chemical manufacturing I Summary: LSB Industries makes a wide variety of chemicals (including nitric acid) and climatecontrol products. Its chemicals segment makes nitrate fertilizers and acids for agricultural, mining and industrial markets. The climate-control division makes hydronic fan coils and a variety of heat pumps. Additionally, its industrial products segment distributes industrial milling, drilling, turning and fabricating machines.
2. GULFPORT ENERGY CORP. I Address: 14313 N May Ave., Suite 100, Oklahoma City, OK 73134 I Phone: 848-8807 I Website: www.gulfportenergy.com I Ticker: GPOR I Exchange: NMS I At the top: James D. Palm I Employees: 45 I Industry: Crude petroleum and natural gas extraction I 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.
3. SANDRIDGE ENERGY INC. I Address: 123 Robert S. Kerr Ave., Oklahoma City, OK 73102 I Phone: 429-5500 I Website: www.sandridgeenergy.com I Ticker: SD I Exchange: NYSE I At the top: Tom L. Ward I Employees: 2,192 I Industry: Crude petroleum and natural gas extraction I 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.
4. HELMERICH & PAYNE INC. I Address: 1437 S Boulder Ave., Tulsa, OK 74119 I Phone: (918) 742-5531 I Website: www.hpinc.com I Ticker: HP I Exchange: NYSE I At the top: Hans C. Helmerich I Employees: 148 I Industry: Oil and gas drilling and exploration I Summary: Helmerich & Payne Inc. engages in the contract drilling of oil and gas wells in the United States and internationally.
5. ALLIANCE RESOURCE PARTNERS LP I Address: 1717 S Boulder Ave., Suite 400, Tulsa, OK 74119 I Phone: (918) 295-7600 I Website: www.arlp.com I Ticker: ARLP I Exchange: NAS I At the top: Joseph W. Craft III I Employees: 3,559 I Industry: Bituminous coal and lignite surface mining I Summary: Alliance Resource Partners LP engages in the production and marketing of coal for utilities and industrial users in the United States.
6. ALLIANCE HOLDINGS GP LP I Address: 1717 S Boulder Ave., Suite 400, Tulsa, OK 74119 I Phone: (918) 295-1415 I Website: www.ahgp.com I Ticker: AHGP I Exchange: NMS I At the top: Joseph W. Craft III I Employees: 2,487 I Industry: Bituminous coal underground mining I Summary: The company, through its subsidiaries, produces and markets coal primarily to utilities and industrial users in the U.S. It produces a range of steam coal with varying sulfur and heat contents.
7. UNIT CORP. I Address: 7130 South Lewis Suite 1000, Tulsa, OK 74136 I Phone: (918) 493-7700 I Website: www.unitcorp.com I Ticker: UNT I Exchange: NYSE I At the top: Larry D. Pinkston I Employees: 1,094 I Industry: Crude petroleum and natural gas extraction I Summary: Unit conducts onshore drilling of oil and natural gas wells for customers in the Gulf Coast, Midcontinent, and Rocky Mountain regions of the U.S.
8. ONEOK PARTNERS LP I Address: 100 West Fifth St., Tulsa, OK 74103 I Phone: (918) 588-7000 I Website: www.oneokpartners.com I Ticker: OKS I Exchange: NYSE I At the top: John W. Gibson I Employees: More than 1,200 I Industry: Pipeline transportation of natural gas I Summary: The company is engaged in the gathering, processing, storage and transportation of natural gas in the U.S.
9. CHESAPEAKE ENERGY CORP. I Address: 6100 N Western Ave., Oklahoma City, OK 73118 I Phone: 848-8000 I Website: www.chk.com I Ticker: CHK I Exchange: NYSE I At the top: Aubrey K. McClendon I Employees: 10,000 I Industry: Natural Gas Distribution I Summary: Chesapeake Energy Corp. is a producer of oil and natural gas in the U.S.
H&P grows to largest U.S. land drilling fleet NO. 4 | FOCUS REMAINED ON ADDING FLEX RIGS DURING RECESSION BY JAY F. MARKS Business Writer jmarks@opubco.com
TULSA — Even when the oil and natural gas industry bottomed out in 2008, Helmerich & Payne Inc. never stopped building. As a result, the Tulsabased driller now has the youngest, most technically capable rig fleet in the industry. It also boasts the largest fleet of land rigs in the United States. “We led the industry recovery,” CEO Hans Helmerich said. Helmerich & Payne also is one of the leading public companies in Oklahoma, ranking No. 4 on this year’s Oklahoma Inc. list with earnings per share rising an impressive 214.4 percent. Helmerich said the company’s focus on building its rig fleet during the recession was not a gamble. “We stayed very much engaged in an effort to add additional flex rigs. All of those were under longterm contracts from our customers so it wasn’t like we were speculating,” he said. “We were being supported by firm orders.” Continued activity was good for the drilling company’s employees as well. “That kept our people together and kept a core competency intact,” Helmerich said. The driller still is building more rigs, recently increasing its efforts to churn out four a month. Helmerich said the company’s utilization and day rates have improved as the oil and natural gas industry has moved out of the downturn caused by the economy. He dismissed concerns that another recession could be coming. He said he tends to be more optimistic. “We think that energy is going to be an important cornerstone of the country’s economic growth,” Helmerich said. “It’s the same when you look at the global economy. “In today’s environment, that’s going to require additional drilling. A lot of that drilling has shifted to unconventional shale plays.” Helmerich & Payne is well-equipped to deal with the change as more producers are focusing on oil and natural gas liquids, so Helmerich believes the company’s progress is sustainable. Juan Pablo Tardio, the company’s chief financial officer, said Helmerich & Payne has 255 land rigs in its U.S. fleet, with 224 of those working, and commitments to build 35 more rigs in this fiscal year. The company also has 24 international rigs and nine offshore drilling platforms. “We would expect to continue taking market share going forward,” he said. Tardio said other drilling companies are building new rigs now too, but many of them are trying to replace aging equipment, with as much as 90 percent of their fleets being made up of older rigs. “Every time they put one new rig out in the field, typically it’s at the expense of letting a very old rig become stagnant,” he said. “They have not gained as much traction as we have.” Helmerich & Payne has built 182 rigs since 2006. “That makes us by far the youngest land fleet in the world,” Tardio said. Helmerich said the company never set out to amass the nation’s largest fleet of land rigs, but that is what happened. “We set about wanting to have the highest per-
A Helmerich & Payne Inc. FlexRig works in the Bakken Shale in western North Dakota earlier this year. PHOTOS PROVIDED
Four Helmerich & Payne FlexRigs are rigged up for initial testing at the company’s Houston yard in May 2006.
forming, most capable drilling rig,” he said. “The market has really just responded by allowing us to have the best market
share. “We’ve been very fortunate.” Helmerich said he expects the company to cap-
italize on its investment in new technology as other drilling companies enter replacement cycle to phase out older assets.
COMPANY PROFILES 10. OGE ENERGY CORP. I Address: 321 N Harvey PO Box 321, Oklahoma City, OK 73101 I Phone: 553-3000 I Website: www.oge.com I Ticker: OGE I Exchange: NYSE I At the top: Peter B. Delaney I Employees: 3,363 I Industry: Electric power distribution I Summary: OGE Energy is the holding company for the largest electric utility in Oklahoma, but its largest revenue producer is its energy marketing and natural gas transmission unit, OGE Energy Resources.
11. ONEOK INC. I Address: 100 W Fifth St., Tulsa, OK 74103 I Phone: (918) 588-7000 I Website: www.oneok.com I Ticker: OKE I Exchange: NYSE I At the top: John W. Gibson I Employees: More than 4,800 I Industry: Natural gas distribution I Summary: The company’s regulated utilities — Oklahoma Natural Gas, Kansas Gas Service and Texas Gas Service — distribute natural gas to more than 2 million customers.
12. MAGELLAN MIDSTREAM PARTNERS LP I Address: One Williams Center, PO Box 22186, Tulsa, OK 74121 I Phone: (918) 574-7000 I Website: www.magellanlp.com I Ticker: MMP I Exchange: NYSE I At the top: Michael N. Mears I Employees: 1,217 I Industry: Pipeline transportation of refined petroleum products I Summary: Magellan Midstream Partners is an energy infrastructure enterprise with ammonia and petroleum products storage, transportation and distribution assets.
13. DOLLAR THRIFTY AUTOMOTIVE GROUP INC. I Address: 5330 E 31st St., Tulsa, OK 74135 I Phone: (918) 660-7700 I Website: www.dtag.com I Ticker: DTG I Exchange: NYSE I At the top: Scott L. Thompson I Employees: 6,000 I Industry: Passenger car rental I Summary: Dollar Thrifty Automotive Group rents cars under the Dollar Rent A Car and Thrifty Car Rental brands.
14. DEVON ENERGY CORP. I Address: 20 N Broadway, Oklahoma City, OK 73102 I Phone: 235-3611 I Website: www.devonenergy.com I Ticker: DVN I Exchange: NYSE I At the top: John Richels I Employees: 5,000 I Industry: Crude petroleum and natural gas extraction I Summary: Devon Energy Corp. focuses on exploration and production assets in Oklahoma, Texas, Wyoming and western Canada.
15. AAON INC. I Address: 2425 South Yukon, Tulsa, OK 74107 I Phone: (918) 583-2266 I Website: www.aaon.com I Ticker: AAON I Exchange: NAS I At the top: Norman H. Asbjornson I Employees: 1,178 I Industry: Refrigeration and heating equipment I Summary: AAON and its subsidiaries make and sell rooftop air conditioning and heating equipment for commercial and industrial buildings, primarily in the U.S.
16. WILLIAMS PARTNERS LP I Address: One Williams Center, Tulsa, OK 74172 I Phone: (918) 573-2000 I Website: www.williamslp.com I Ticker: WPZ I Exchange: NYSE I At the top: Alan S. Armstrong I Employees: n/a I Industry: Pipeline transportation of natural gas I Summary: The company is also engaged in the gathering and processing of natural gas and the storage of NGLs, and the operation of three major interstate natural gas pipelines.
17. POSTROCK ENERGY CORP. I Address: 210 Park Ave., Suite 1350, Oklahoma City, OK 73102 I Phone: 600-7704 I Website: www.pstr.com I Ticker: PSTR I Exchange: NAS I At the top: Terry W. Carter I Employees: 161 I Industry: Crude petroleum and natural gas extraction I Summary: PostRock Energy Corp. is an integrated independent energy company engaged in the acquisition, exploration, development, production and transportation of oil and natural gas.
18. BANCFIRST CORP. I Address: 101 N Broadway, Oklahoma City, OK 73102 I Phone: 270-1086 I Website: www.bancfirst.com I Ticker: BANF I Exchange: NAS I At the top: David E. Rainbolt I Employees: 1,457 I Industry: Commercial banking I Summary: BancFirst Corp. is the holding company for BancFirst, a super-community bank that emphasizes decentralized management and centralized support.
SANDRIDGE AMONG NEWCOMERS EXPECTED TO DEBUT IN OKLAHOMA INC. NEXT YEAR
Deals take state companies into and out of rankings BY DON MECOY Business Writer dmecoy@opubco.com
Several companies have joined the Oklahoma Inc. pantheon, although they’re not in this year’s rankings because they didn’t have a full year of results. These newcomers, which should appear in next year’s editions of Oklahoma Inc., should boost the rankings’ energy-related bent. Among the public offerings over the past year were two from SandRidge Energy Corp., which seemingly set the standard for such offerings this year in introducing investors to
a pair of trusts. The SandRidge Mississippian Trust, which trades as “SDT,” raised $340 million in April, followed by the SandRidge Permian Trust, “PER,” which at its initial offering grossed $621 million. Other successful offerings from Oklahoma companies in 2011 included NGL Energy Partners in May and Compressco Partners in June. Tulsa-based NGL netted $75.5 million from its initial public offering, while Compressco, which trades as “GSJK,” earned $54 million from becoming a public company. Another planned IPO
was canceled in October, robbing investors of a chance to buy into “JAWS.” Oklahoma City-based Great White Energy Services withdrew its plans for an initial public offering after it was acquired by Bermuda-based Archer Limited. The most recent statebased IPO was an offering from Chesapeake Energy Corp., which is selling more than 23 million shares in a new trust. The Chesapeake Grant Wash Trust will own royalty interests conveyed to it by Chesapeake. Some Oklahoma Inc. firms made their final appearances in last year’s
rankings. Pre-Paid Legal Services Inc. went private after the Ada company was acquired for $650 million by a New York-based private equity firm. The company, which sells a subscription to a package of limited legal services, has changed its name to LegalShield. Broken Arrow-based XETA Technologies, a communications technology firm, was acquired by PAETEC Holdings Corp. in a $61 million deal. And Bronco Drilling Co. was bought out by Chesapeake Energy Corp. in a $315 million transaction to merge into its current drilling company.
COMPANY PROFILES 19. MATRIX SERVICE CO. I Address: 5100 E Skelly Drive Suite 700, Tulsa, OK 74135 I Phone: (918) 838-8822 I Website: www.matrixservice.com I Ticker: MTRX I Exchange: NAS I At the top: John R. Hewitt I Employees: 2,818 I Industry: Site Preparation Contractors I Summary: Matrix Service Co. provides construction, repair and maintenance services mainly to the petroleum and power industries.
20. WILLIAMS COS INC.
Coal is loaded onto a barge on the Ohio River from Alliance’s River View operation in Kentucky in 2010. PHOTOS PROVIDED
Tulsa’s Alliance Resource Partners surges forward NO. 5 | FOR FIRST TIME, IT FINISHES AHEAD OF PARENT COMPANY BY JAY F. MARKS Business Writer jmarks@opubco.com
TULSA — For once, Alliance Resource Partners LP managed to finish ahead of the company that owns all of its assets. Alliance ranked No. 5 on this year’s Oklahoma Inc. list of the top public companies in the state, one slot ahead of general partner Alliance Holdings GP LP on the strength of an 81.3 percent increase in total returns. Both companies are fixtures on the list, finishing among the top seven companies each of the past three years. “ARLP and AHGP are honored to again be recognized for our financial performance as one of Oklahoma Inc.’s top 10 publicly traded companies,” CEO Joseph W. Craft III said. Craft said ARLP and
Lights illuminate Alliance’s Tunnel Ridge preparation plant near Wheeling, W.V., in 2010.
AHGP are master limited partnerships that offer investors two ways to pay for a stake in the performance of Alliance Coal LLC, the fourth largest producer and marketer of coal in the eastern United States. ARLP often is the choice of investors seeking immediate dividends. “Over the past year, Alliance successfully increased production and
sales volumes predominantly through the expansion of our River View mine in the Illinois Basin,” he said. “Our coal supplies were met with strong customer demand for Alliance coal qualities, both domestically and abroad. “This resulted in higher average sales prices per ton sold and increased revenues, and allowed us to
grow distributions to both ARLP and AHGP unit holders.” Craft said Alliance expects to post its 11th consecutive year of record financial performance in 2011, but officials still aren’t satisfied. “We have already identified additional growth opportunities,” he said. Alliance’s Tunnel Ridge mine, which is under construction in West Virginia, is expected to begin production next year. The company recently announced two additional development projects: the Gibson South mine in Indiana and an investment in White Oak Resources, a longwall mining operation being built in Illinois. Both are expected to be in production by 2014. “With the strength of this lineup, Alliance is excited about the future,” Craft said.
Alliance Holdings slips in rankings NO. 6 | COMPANY EXPECTED TO BENEFIT FROM SUCCESS OF CORPORATE SIBLING BY JAY F. MARKS Business Writer jmarks@opubco.com
TULSA — It seems investors weren’t looking for a long-term buy last year. Alliance Holdings GP LP, which owns the assets and incentive distribution rights of coal producer Alliance Resource Partners LP, finished behind its corporate sibling in the 2011 Oklahoma Inc. rankings. Alliance Holdings was No. 6 on the annual list of Oklahoma’s top public companies due to a 24 percent increase in revenues, but it was one slot behind Alliance Resource Partners. CEO Joseph W. Craft III said the master limited partnerships offer two ways to invest in the performance of the operating assets of Alliance Coal LLC. Officials have estimated that 10 percent growth for
I Address: One Williams Center, Tulsa, OK 74172 I Phone: (918) 573-2000 I Website: www.williams.com I Ticker: WMB I Exchange: NYSE I At the top: Alan S. Armstrong I Employees: 5,022 I Industry: Natural Gas Distribution I Summary: Williams is primarily engaged in gas marketing and the gathering, storing and processing of natural gas and natural gas liquids (NGLs).
21. CONTINENTAL RESOURCES INC. I Address: 302 N Independence St. Suite 1500, Enid, OK 73701 I Phone: (580) 233-8955 I Website: www.cpmtres.com I Ticker: CLR I Exchange: NYSE I At the top: Harold Hamm I Employees: 408 I Industry: Oil and Gas Extraction I Summary: Continental Resources Inc. engages in the exploration, exploitation and production of oil and natural gas properties primarily in the U.S.
22. BOK FINANCIAL CORP. I Address: Bank of Oklahoma Tower, Tulsa, OK 74192 I Phone: (918) 588-6000 I Website: www.bokf.com I Ticker: BOKF I Exchange: NAS I At the top: Stanley A. Lybarger I Employees: 4,355 I Industry: Commercial Banking I Summary: BOK offers a range of financial services to consumers and regional businesses.
23. PANHANDLE OIL & GAS INC. I Address: 5400 N Grand Blvd. Grand Centre Suite 3, Oklahoma City, OK 73112 I Phone: (405) 948-1560 I Website: www.panhandleoilandgas.com I At the top: Michael C. Coffman I Employees: 18 I Industry: Crude petroleum and natural gas extraction I Summary: Panhandle Oil and Gas Inc. is involved in the acquisition, management and development of oil and natural gas properties.
24. SEMGROUP CORP. I Address: Two Warren Place 6120 S Yale Ave., Tulsa, OK 74136 I Phone: (918) 524-8100 I Website: www.semgroupcorp.com I Ticker: SEMG I Exchange: NYSE I At the top: Norm J. Szydlowski I Employees: 1,622 I Industry: Natural Gas Distribution I Summary: SemGroup moves oil and gas from the well head to the marketplace. Its SemStream unit delivers natural gas liquids (NGLs), propane and feedstock supplies to customers in more than 40 U.S. states.
25. SONIC CORP. I Address: 300 Johnny Bench Drive, Oklahoma City, OK 73104 I Phone: 225-5000 I Website: www.sonicdrivein.com I Ticker: SONC I Exchange: NAS I At the top: J. Clifford Hudson I Employees: 350 I Industry: Restaurants I Summary: Sonic Corp. operates and franchises a chain of quick-service drive-in restaurants in the United States.
Alliance’s Hopkins County Coal preparation plant is seen in 2010 in Madisonville, Ky. PHOTO PROVIDED
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. AHGP’s holdings make it a good long-term in-
vestment, while its counterpart is the more likely choice of those seeking immediate dividends, officials said.
OKC CENTRAL
Covering downtown brick by brick STEVE LACKMEYER at http://blog.newsok.com/okccentral/
COMPANY PROFILES 27. EDUCATIONAL DEVELOPMENT CORP. I Address: 10302 E 55th Place, Tulsa, OK 74146 I Phone: (918) 622-4522 I Website: www.edcpub.com I Ticker: EDUC I Exchange: NAS I At the top: Randall W. White I Employees: 78 I Industry: Book Publishing I Summary: Educational Development Corp., is the exclusive U.S. distributor of a line of about 1,500 children’s books published by the U.K.’s Usborne Publishing Limited.
28. ORCHIDS PAPER PRODUCTS CO. I Address: 4826 Hunt St., Pryor, OK 74361 I Phone: (918) 825-0616 I Website: www.orchidspaper.com I Ticker: TIS I Exchange: AMS I At the top: Robert A. Snyder I Employees: 292 I Industry: Paper Mill I Summary: Orchids Paper Products Co. makes bulk tissue paper and converts it into bathroom tissue, paper napkins and paper towels for the consumer market.
29. GMX RESOURCES INC. I Address: 9400 North Broadway Suite 600, Oklahoma City, OK 73114 I Phone: 600-0711 I Website: www.gmxresources.com I Ticker: GMRX I Exchange: NYSE I At the top: Ken L. Kenworthy Jr. I Employees: 95 I Industry: Crude petroleum and natural gas extraction I 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.
30. BLUEKNIGHT ENERGY PARTNERS LP I Address: Two Warren Place 6120 S Yale Ave., Tulsa, OK 74136 I Phone: (918) 237-4000 I Website: www.bkep.com I Ticker: BKEP I Exchange: NAS I At the top: James C. Dyer IV I Employees: 400 I Industry: Pipeling Transportation of Crude Oil I Summary: Transportation, Communication, Electric, Gas and Sanitary Services; Crude Petroleum Pipeline Special Warehouse/Storage.
31. ADDVANTAGE TECHNOLOGIES GROUP INC. I Address: 1221 E Houston St., Broken Arrow, OK 74012 I Phone: (918) 251-9121 I Website: www.addvantagetech.com I Ticker: AEY I Exchange: NAS I At the top: Kenneth A. Chymiak I Employees: 140 I Industry: Radio and TV communications equipment I Summary: ADDvantage sells new and remanufactured cable TV equipment and provides repair services to cable operators.
32. SOUTHWEST BANCORP INC. I Address: 608 S Main St., Stillwater, OK 74074 I Phone: 742-1800 I Website: www.oksb.com I Ticker: OKSB I Exchange: NAS I At the top: Rick Green I Employees: 466 I Industry: National commercial bank I Summary: Southwest Bancorp Inc., a financial holding company, provides commercial and consumer banking services in Oklahoma, Kansas and Texas.
33. GRAYMARK HEALTHCARE INC. I Address: 210 Park Ave. Suite 1350, Oklahoma City, OK 73102 I Phone: 601-5300 I Website: www.graymarkhealthcare.com I Ticker: GRMH I Exchange: NAS I At the top: Stanton Nelson I Employees: 206 I Industry: Pharmacies and Drugstores I Summary: Graymark Healthcare acquires and operates independent pharmacies and sleep diagnostic centers, many of which are located in smaller U.S. markets.
34. SYNTROLEUM CORP. I Address: 4322 S 49th West Ave., Tulsa, OK 74107 I Phone: (918) 592-7900 I Website: www.syntroleum.com I Ticker: SYNM I Exchange: NAS I At the top: Edward G. Roth I Employees: 19 I Industry: Crude petroleum and natural gas extraction I 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.
CONTRIBUTING This year’s Oklahoma Inc. was compiled from data provided by S&P Capital IQ, with reports by Business reporters Don Mecoy, Jay F. Marks, Paula Burkes, Richard Mize and Jennifer Palmer. Also contributing are graphic artists Chris Schoelen, The Oklahoman’s data team members Darla Lindauer and Margaret Muckleroy, with design by Deaven Coggins.
Unit Corp.’s growth relies on all segments of business NO. 7 | COMPANY ADJUSTED AS DEMAND SHIFTED FROM NATURAL GAS TO OIL BY JAY F. MARKS Business Writer jmarks@opubco.com
TULSA — It took a team effort to propel Unit Corp. into the top tier of Oklahoma companies this year. CEO Larry Pinkston said all three segments of Unit’s business contributed to its success. Fueled by its contract drilling, oil and natural gas and midstream businesses, Unit ranked No. 7 on this year’s Oklahoma Inc. list, with revenues up 33.6 percent. Pinkston said most of the heavy lifting this year was done by Unit’s contract drilling segment, which currently boasts a fleet of 126 land rigs. The company has built five new rigs this year, with plans to add two more in the fourth quarter. He said 82 rigs were running Tuesday, with demand varying due to the type of wells being drilled by producers who contract with Unit. Usage of Unit’s rigs is driven by oil and natural gas liquids prices. “It’s pretty profitable right now to drill for those products,” Pinkston said. He said seven of Unit’s rigs are being used by the company’s oil and gas segment in Oklahoma and Texas.
Unit traditionally has focused on finding natural gas in the Oklahoma Panhandle and East Texas, but Pinkston said the company turned its attention to liquids production due to lower gas prices, like many other producers. The recession that killed natural gas prices basically shut down a lot of exploration activities, so he said it took Unit some time to build up momentum on the production side. Pinkston said natural gas and liquids are plentiful in the areas where Unit operates, so the company didn’t have to acquire any new acreage when it shifted its efforts away from gas. “We had a lot of acreage that had liquids potential,” he said. Unit produced nearly 11,000 barrels of oil equivalent between July 2010 and June 2011, with liquids accounting for 40 percent of that figure. Pinkston said Unit’s production is up about 15 percent, but he expects that figure to go higher over the next 12 months. The performance of Unit’s midstream business, its third segment, tends to follow the health of the oil and gas industry as a whole, he said. The majority of its operations involve third-party operators. Pinkston said Unit is
A Unit Corp. drilling rig is shown in this undated photo. The rig currently is operating in Canadian County. PHOTO PROVIDED
building gas processing plants at unprecedented rates, mostly to serve producers in the growing Mississippian play in northern Oklahoma and southern Kansas. “We’re seeing opportunities right in our back door that we’ve never seen before,” he said. Pinkston said he looks forward to increased domestic oil and gas produc-
tion as the United States tries to become less dependent on foreign oil. He doesn’t expect natural gas prices to rebound soon, but eventually prices will rise enough to spur additional drilling for the commodity he views as the best available alternative to oil. “The country will wake up to it sooner or later,” Pinkston said.
Service sector sees 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. had the strongest showing across the sector but fell to No. 13 from No. 3 last year. Sonic Corp. climbed nine notches to No. 25 from No. 34. The three remaining companies in the sector slid. Educational Development Corp., a Tulsa-based company that sells children’s books, fell to No. 27 from No. 20. ADDvantage Technologies Group Inc., a
Broken Arrow-based company that resells cable TV equipment, plummeted to No. 31 from No. 9. And, GrayMark Healthcare Inc., an Oklahoma City-based company that owns and operates diagnostic sleep centers and a medical equipment company that treats patients for sleep disorders, slipped to No. 33 from No. 29. Jake Dollarhide, chief executive of Longbow Asset Management in Tulsa who follows the services sector, attributes the sector’s poor showing to slow economic recovery. “Since they deal directly with consumers, service companies live and die by the economy,” he said Moreover, service com-
panies play a major role in improving the unemployment rate but aren’t adding jobs, he said, because the economy hasn’t returned to pre-2008 highs. Dollar Thrifty’s respectable showing on the list is largely due to last spring’s bidding war between Hertz and Avis to acquire it, he said. Despite the weakness in leisure and business travel, its share, he said, is tied to the buyout premium of Hertz’s current offer. Though Sonic moved up on this year’s list, it may have been negatively affected because many of its restaurants are in smaller communities that had job losses, Dollarhide said. Sonic has added to its menu and stayed creative,
but it hasn’t gripped the same momentum as McDonald’s, which has pulled the right triggers with salad, breakfast and coffee selections, he said. Despite the lower rankings, services companies are good for Oklahoma, said Lynn Gray, an economist with the state Employment Security Commission. For the 12 months ending August 2011, the goods-producing area grew by 17,800 jobs or 7.6 percent, while service and government grew by 20,100, or 2.11 percent, and 4,800, 1.43 percent, respectively, Gray said. No major industry of the service area grew as fast as even the slowest in the goods sector, he said.
Chesapeake expects bright future NO. 9 | COMPANY TURNS ITS ATTENTION TO PRODUCTION AFTER AMASSING LEASEHOLDS IN MOST OF THE TOP RESOURCE PLAYS BY JAY F. MARKS Business Writer jmarks@opubco.com
The past year was full of highlights for Chesapeake Energy Corp., but a company executive said the best could be yet to come. Chesapeake has ensured a strong revenue stream by locking in commodity prices with its hedging program and signing joint venture deals to get partners to cover a share of its drilling costs, said Jeff Mobley, the company’s senior vice president of investor relations and research. “That gave us extra revenue and profitability,” he said. “That also gave us extra cash flow to grow with.” More money has translated into increased drilling and production growth, Mobley said. Chesapeake has drilled extensively in the Haynesville Shale in Louisiana, in the Marcellus Shale primarily in West Virginia, Pennsylvania and New York and now is ramping up production the Eagle Ford Shale in South Texas. Chesapeake finished the fiscal year as the No. 9 public company in the state, according to the Oklahoma Inc. rankings, on the strength of a 30.4 percent increase in earnings. Mobley said Chesapeake is turning its attention to production after amassing large leaseholds in most of the nation’s top resource plays. The company, which has been the nation’s most active driller since 2004, is shifting its focus from natural gas to oil and liquids. Mobley said that is expected to drive Chesapeake’s earnings from $5 billion this year to $11 billion by 2015 as oil and liquids production increases. The shift also will allow the company’s profit margin and production to increase 50 percent over that period. “That will be the natural outcome of what we’ve built,” he said. Mobley said Chesapeake can stretch its operations budget further due to its vertical integration strategy, assembling its own roster of service companies to offset rising costs. The company aims to drill wells cheaper, faster and better than other producers, he said. “The hard work’s already been done,” Mobley said. “We’ve captured the land. We’ve built the organization. “Now it’s just simple execution.” While Chesapeake is turning its attention away from natural gas production, Mobley said the company that proclaims itself “America’s Champion of Natural Gas” remains committed to ensuring demand matches the newly discovered supply. He said the nation’s ample supply of natural gas can be used in a number of ways, including transportation, power generation, manufacturing and even exports. “We’re working on all of those,” Mobley said. Perhaps the most visible
Workers move a section of well casing into place at a Chesapeake Energy well site April 23, 2010, in Bradford County, Pa.
AP PHOTO
Top: Workers with Chesapeake Energy Corp. subsidiary Nomac Drilling work on a rig near Alva in June 2009.
A Chesapeake Energy Corp. rig in the Marcellus Shale in West Virginia. PHOTO PROVIDED
alternative is on the vehicle front, where Chesapeake is pushing compressed natural gas as a replacement for gasoline and diesel fuel. “It’s happening,” Mobley said. “It’s on the way.” The company is converting its vehicle fleet to run on CNG, which costs as little as 75 cents a gallon, while investing $150 million in Clean Energy Fuels to help build a network of refueling stations for heavy-duty trucks. Mobley said Chesapeake is also working with carmakers to make more CNG vehicles available to drivers.
He said exporting natural gas to other companies remains an option, but Chesapeake officials prefer to use domestic natural gas as a replacement for foreign oil. The numbers make a compelling case for exporting natural gas, however. Mobley said natural gas sells for up to $15 per thousand cubic feet in Asia and $10 in Europe, while the price remains about $4 in the United States. Exporting natural gas would add another $3 to $3.50 to the price, he said, but it could happen as soon as 2015.
Chesapeake Energy Corp. is a proponent of compressed natural gas as an alternative to gasoline or diesel fuel. One of its CNG buses is shown refueling at a local station. PHOTO PROVIDED
Left: A Chesapeake Energy Corp. drilling rig in the Haynesville Shale near Shreveport, La. Chesapeake owns a leading position in the natural gas play. PHOTOS PROVIDED
Rick Sipes, lead compressor technician for Enogex, and OGE subsidiary, levels the frame of a natural gas compressor cooler in Clinton in December 2007.
PHOTO PROVIDED
OGE Energy fueled by employees NO. 10 | COMPANY REPORTED RECORD EARNINGS IN 2010 BY JAY F. MARKS Business Writer jmarks@opubco.com
OGE Energy Corp. boasts Oklahoma’s largest electric utility and a midstream company with 8,000 miles of intrastate gas gathering and transportation pipeline, but CEO Pete Delaney credits OGE’s employees for its success. Delaney said OGE’s 3,500 employees, known internally as members, are devoted to “working together toward our common objective of being the industry leader in helping customers, developing our workforce and delivering shareholder value.” Such drive likely propelled OGE to No. 10 on
this year’s Oklahoma Inc. list with a 42.2 percent increase in total returns. OGE reported record earnings in 2010, as the company embarked on an ambitious $1.4 billion growth program. The company’s utility subsidiary, Oklahoma Gas and Electric Co., currently is in the middle of a $366 million project to update its power grid with smart technology. The company is installing smart meters for about 780,000 customers in Oklahoma and Arkansas. Smart grid technology is expected to help OG&E customers save money if they tailor their electricity use to avoid peak hours, when power is more expensive. The new system also is
expected to significantly lower the company’s operational costs. Other additions to the smart grid will make OG&E’s power grid more reliable and efficient, the company said. “Our customers have responded well to smart meter deployment although many of the benefits are yet to come,” Delaney said. “The full benefits will not be realized until we have fully deployed and integrated all of the systems associated with operating a ‘smarter’ grid.” The company expects to finish installing new meters by the end of 2012. More than 440,000 have been installed already. OGE’s other major subsidiary is Enogex LLC. “Enogex is not as high
Enogex operates a natural gas processing plant near Clinton.
PHOTO PROVIDED
profile as the utility since its customers for the most part are other businesses as opposed to individuals spread out across the state,” Delaney said. “Enogex plays an important role in the natural gas infrastructure system in Oklahoma as one of the largest gatherers, transporters and processors of natural gas.” Enogex is an intrastate
natural gas pipeline and midstream service provider with more than 50 years in the industry. It operates the 11th largest pipeline network in the country. “From a financial standpoint, Enogex’s earnings growth rate is expected to be higher than the utility’s which increases the corporation’s overall earnings growth,” Delaney said. Delaney said he is opti-
mistic about OGE’s future, despite a substantial need for continued investment in the electric and natural gas infrastructure in Oklahoma. “OGE Energy has the financial strength, the operational expertise and the commitment to customers to keep Oklahoma powered for the next 100 years as it has done for the last 109 years,” he said.
BANCFIRST, BOK FINANCIAL AND SOUTHWEST BANCORP EACH PRESENT DISTINCT BUSINESS MODELS
Bank companies offer different strategies BY DON MECOY Business Writer dmecoy@opubco.com
With just three members, Oklahoma’s publicly traded banking sector is an exclusive group. Those three companies are among the largest banks in the state. Oklahoma City-based BancFirst Corp is the parent of BancFirst, the largest state-chartered bank in Oklahoma. Tulsa-based BOK Financial Corp. is the parent company of Bank of Oklahoma, the state’s largest bank. The largest subsidiary of Southwest Bancorp is Stillwater National Bank, also among the top 10 largest banks in the Sooner State. But each has a distinct business model. “It’s almost like they’re not in the same industry,” said Gary Simpson, Oklahoma State University finance professor and Oklahoma Bankers Association chair of banking. “Their strategy is so different, and their performance is different.” BancFirst, which earned the highest Oklahoma Inc. ranking among the three, conducts all of its banking operations within Oklahoma. The company added to its statewide reach with three bank acquisitions in 2010, and closed on a fourth in July. It has bought five banks in the
An exterior view of a new BancFirst branch in Moore.
past year and a half. BancFirst operates more branches in more Oklahoma communities than any of its competitors. The company’s strongest category in the Oklahoma Inc. rankings reflected its nearly 10 percent growth in earnings. BOK Financial is a regional financial power, operating banks in eight states. Its majority shareholder, George Kaiser, is Oklahoma’s wealthiest resident. BOK Financial was the largest commercial bank in the country that rejected federal funds in the wake of the 2008 financial collapse. Despite its broad footprint, much of BOK Financial’s strength comes from its Oklahoma roots. Chief Financial Officer Steven Nell said much of
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
LSB Industries Inc Gulfport Energy Corp SandRidge Energy Inc Helmerich & Payne Inc. Alliance Resource Partners LP ONEOK Inc. Dollar Thrifty Automotive Group Inc. Williams Cos Inc. (The) Unit Corp Alliance Holdings GP LP Continental Resources Inc Matrix Service Co Chesapeake Energy Corp AAON Inc OGE Energy Corp. ONEOK Partners LP Sonic Corp Magellan Midstream Partners LP Williams Partners LP Devon Energy Corp PostRock Energy Corp BOK Financial Corp Panhandle Oil & Gas Inc BancFirst Corp Educational Development Corp Orchids Paper Products Co SemGroup Corp Blueknight Energy Partners LP ADDvantage Technologies Group Inc Syntroleum Corp Southwest Bancorp Inc GMX Resources Inc Ram Energy Resources Inc GrayMark Healthcare Inc
One Year Total Return in Percent
222.5 150.3 82.8 81.9 81.3 77.3 73.1 69.2 50.1 48.3 45.5 43.7 43.3 42.3 42.2 40.6 37.2 34.8 31.5 30.5 23.6 17.8 12.8 8.4 6.2 -1.1 -2.2 -4.2 -7.8 -10.4 -26.3 -31.4 -39.6 -74.0
the company’s recent loan growth and deposit growth was based in Oklahoma and Texas. “I think it bodes pretty well for the state,” Nell said. In the Oklahoma Inc. rankings, BancFirst ranked 18th and BOK Financial was 22nd, precisely the reverse of where the companies finished last year. Southwest Bancorp experienced a big dip in its rankings that reflected investor sentiment of the company’s stock. The company finished dead last in the Oklahoma Inc. rankings in terms of its return to shareholders, who took a 74 percent loss in the July 2010 through June 2011 period. The stock has continued to swoon as Southwest Bancorp works out troubled
Stock Price June 30, 2011
42.92 29.69 10.66 66.12 77.45 74.01 73.74 30.25 60.93 49.88 64.91 13.38 29.69 21.84 50.32 42.65 10.63 59.73 54.18 78.81 5.83 54.77 29.49 38.60 5.39 12.65 25.67 8.05 2.60 1.47 9.79 4.45 1.25 1.25
Stock Price June 30, 2010
13.31 11.86 5.83 36.52 44.97 43.25 42.61 18.28 40.59 35.17 44.62 9.31 20.95 15.54 36.56 32.15 7.75 46.75 43.62 60.92 4.72 47.47 26.43 36.49 5.51 13.00 26.25 8.40 2.82 1.64 13.29 6.49 2.07 4.80
SOURCE: S&P CAPITAL IQIQ CAPITAL SOURCE:
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
Company Name
Dollar Thrifty Automotive Group Inc. Gulfport Energy Corp Williams Partners LP Alliance Holdings GP LP ONEOK Inc. Alliance Resource Partners LP LSB Industries Inc Continental Resources Inc Unit Corp Helmerich & Payne Inc. ONEOK Partners LP Williams Cos Inc. (The) Magellan Midstream Partners LP OGE Energy Corp. AAON Inc ADDvantage Technologies Group Inc Ram Energy Resources Inc Panhandle Oil & Gas Inc Chesapeake Energy Corp BOK Financial Corp Devon Energy Corp Blueknight Energy Partners LP SandRidge Energy Inc Educational Development Corp BancFirst Corp Matrix Service Co Sonic Corp PostRock Energy Corp Southwest Bancorp Inc Syntroleum Corp Orchids Paper Products Co GMX Resources Inc GrayMark Healthcare Inc SemGroup Corp
Two Year Total Return in Percent
428.6 333.4 246.7 191.3 171.6 171.0 165.4 133.9 121.0 116.4 113.0 102.9 94.4 91.2 69.4 57.6 56.1 53.6 53.3 51.6 47.2 29.8 25.1 22.5 17.2 16.6 6.0 1.6 0.8 -34.1 -37.4 -58.2 -84.4 NA
Stock Price June 30, 2011
73.74 29.69 54.18 49.88 74.01 77.45 42.92 64.91 60.93 66.12 42.65 30.25 59.73 50.32 21.84 2.60 1.25 29.49 29.69 54.77 78.81 8.05 10.66 5.39 38.60 13.38 10.63 5.83 9.79 1.47 12.65 4.45 1.25 25.67
An interior view of a new BancFirst branch at 701 SW 19 in Moore. PHOTOS BY NATE BILLINGS, THE OKLAHOMAN
loans, most of which were made outside Oklahoma. CEO and President Rick Green said the company has added staff and boosted its credit analysis as it
Financial major Rank Company Name
Score
1 2 3
1.33 1.67 3.00
BOK Financial Corp BancFirst Corp Southwest Bancorp Inc
One Year Total Return (Stock and dividends) in percent
17.82 8.41 -26.34
sets,” Green said. “Accordingly, we have undertaken a disciplined analysis of all alternatives available to accelerate the resolution process in the near-term.”
Rank
Percent Change in Revenues ‘10 to ‘11
1 2 3
-4.78 6.83 -9.02
Rank
Percent Change in Earnings Per Share ‘10 to ‘11
Rank
2 1 3
18.18 9.69 -73.85
1 2 3
CAPITAL IQ IQ SOURCE: SOURCE: S&P CAPITAL
Best revenue 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
SandRidge Energy Inc Gulfport Energy Corp Helmerich & Payne Inc. LSB Industries Inc Unit Corp Alliance Holdings GP LP Alliance Resource Partners LP GMX Resources Inc Magellan Midstream Partners LP ONEOK Partners LP SemGroup Corp AAON Inc Williams Partners LP OGE Energy Corp. Chesapeake Energy Corp Williams Cos Inc. (The) BancFirst Corp ONEOK Inc. Blueknight Energy Partners LP Matrix Service Co Devon Energy Corp Dollar Thrifty Automotive Group Inc. Orchids Paper Products Co Continental Resources Inc Sonic Corp Educational Development Corp BOK Financial Corp Panhandle Oil & Gas Inc PostRock Energy Corp Ram Energy Resources Inc Southwest Bancorp Inc GrayMark Healthcare Inc ADDvantage Technologies Group Inc Syntroleum Corp
Percent Change in Revenues ‘10 to ‘11
‘11 Total Revenues (in millions)
‘10 Total Revenues (in millions)
75.9 67.5 43.5 33.6 33.6 24.0 24.0 22.7 21.2 20.0 16.9 14.6 12.4 11.5 7.3 7.2 6.8 6.7 6.0 2.4 1.1 0.5 -1.2 -3.2 -3.3 -4.8 -4.8 -6.8 -7.8 -8.8 -9.0 -12.5 -15.7 -55.6
1,215.923 173.285 2,402.100 724.215 1,009.592 1,709.904 1,710.265 114.245 1,630.916 9,700.602 1,589.602 259.701 6,075.000 3,772.500 9,486.000 9,972.000 250.448 13,680.317 161.763 604.149 9,855.000 1,536.079 92.837 877.511 550.036 27.212 1,332.045 44.866 99.064 100.712 150.943 19.354 38.555 4.919
691.366 103.445 1,674.481 541.880 755.915 1,378.479 1,378.832 93.144 1,345.780 8,085.696 1,359.638 226.560 5,405.000 3,382.000 8,844.000 9,304.000 234.427 12,825.295 152.568 589.959 9,745.000 1,528.771 93.917 906.078 568.972 28.576 1,398.879 48.150 107.448 110.373 165.898 22.108 45.740 11.076
SOURCE: S&P CAPITAL CAPITALIQIQ SOURCE:
Best price to earnings ratio
Stock Price June 30, 2009
Rank
13.95 6.85 18.06 19.19 29.49 32.50 16.17 27.75 27.57 30.87 22.90 15.61 34.76 28.32 13.28 1.65 0.80 19.63 19.83 37.67 54.50 6.20 8.52 5.10 34.58 11.48 10.03 5.74 9.76 2.23 20.55 10.64 8.00 NA
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
CAPITAL SOURCE: SOURCE: S&P CAPITAL IQ IQ
works through its problem loans. “However, we are not satisfied with the pace of our resolution of problem and potential problem as-
Company Name
Price to Earnings Stock Price ‘11 Ratio June 30, June 30, Earnings 2011 Per Share 2011
Continental Resources Inc 118.0 Southwest Bancorp Inc 57.6 Sonic Corp 55.9 Matrix Service Co 39.4 AAON Inc 29.6 Panhandle Oil & Gas Inc 27.8 ONEOK Inc. 24.3 Orchids Paper Products Co 22.2 Magellan Midstream Partners LP 19.9 Chesapeake Energy Corp 19.8 ONEOK Partners LP 18.2 Gulfport Energy Corp 17.9 Helmerich & Payne Inc. 17.8 Dollar Thrifty Automotive Group Inc. 17.6 Williams Partners LP 17.3 Unit Corp 17.1 Educational Development Corp 16.3 Alliance Holdings GP LP 15.6 OGE Energy Corp. 15.2 BOK Financial Corp 14.5 BancFirst Corp 13.6 LSB Industries Inc 13.0 Alliance Resource Partners LP 10.6 ADDvantage Technologies Group Inc 10.0 Devon Energy Corp 5.8 PostRock Energy Corp 1.4 GMX Resources Inc -0.7 GrayMark Healthcare Inc -1.4 Blueknight Energy Partners LP -4.9 Syntroleum Corp -6.7 Ram Energy Resources Inc -25.0 Williams Cos Inc. (The) -32.2 SemGroup Corp -32.5 SandRidge Energy Inc -118.4
64.91 9.79 10.63 13.38 21.84 29.49 74.01 12.65 59.73 29.69 42.65 29.69 66.12 73.74 54.18 60.93 5.39 49.88 50.32 54.77 38.60 42.92 77.45 2.60 78.81 5.83 4.45 1.25 8.05 1.47 1.25 30.25 25.67 10.66
0.55 0.17 0.19 0.34 0.74 1.06 3.04 0.57 3.00 1.50 2.34 1.66 3.71 4.20 3.14 3.56 0.33 3.20 3.30 3.77 2.83 3.30 7.33 0.26 13.53 4.28 -6.64 -0.91 -1.63 -0.22 -0.05 -0.94 -0.79 -0.09
Percent Change in Earnings Per Share ‘10 to ‘11
Industry Sector
-64.1 -73.8 -65.5 -44.3 -23.8 1.9 -4.7 -60.7 -3.5 30.4 44.0 97.6 214.4 -1.2 -4.3 30.4 -23.3 39.7 17.4 18.2 9.7 725.0 57.3 -35.0 96.4 496.3 -482.5 -203.3 -219.6 -340.0 58.3 -277.4 -101.0 96.4
Energy Financial/Banks Service Energy Manufacturing Energy Energy Manufacturing Energy Energy Energy Energy Energy Service Energy Energy Service Energy Energy Financial/Banks Financial/Banks Manufacturing Energy Technology Energy Energy Energy Service Energy Energy Energy Energy Energy Energy
CAPITAL IQ IQ SOURCE: SOURCE: S&P CAPITAL
Return on average equity 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
Alliance Resource Partners LP Alliance Holdings GP LP Sonic Corp LSB Industries Inc Devon Energy Corp Gulfport Energy Corp Williams Partners LP Magellan Midstream Partners LP Dollar Thrifty Automotive Group Inc. ONEOK Partners LP AAON Inc OGE Energy Corp. ONEOK Inc. Helmerich & Payne Inc. Panhandle Oil & Gas Inc BOK Financial Corp Unit Corp BancFirst Corp Educational Development Corp Chesapeake Energy Corp ADDvantage Technologies Group Inc Orchids Paper Products Co Continental Resources Inc Matrix Service Co Southwest Bancorp Inc SemGroup Corp SandRidge Energy Inc Williams Cos Inc. (The) Syntroleum Corp Ram Energy Resources Inc GMX Resources Inc GrayMark Healthcare Inc PostRock Energy Corp Blueknight Energy Partners LP
‘11 Return on Average Equity (in percent)
‘11 Adjusted Net Income (in millions)
74.1 58.4 43.3 35.0 30.3 28.7 25.8 25.3 22.5 18.4 16.0 14.3 14.1 13.3 12.1 10.0 9.7 9.5 8.7 7.9 7.9 6.1 6.0 4.8 1.1 -3.8 -4.7 -7.0 -63.2 -70.5 -96.4 -156.3 NM NM
350.730 192.001 11.594 71.090 5796.000 75.432 1179.000 338.050 120.689 605.852 18.444 321.600 323.641 393.056 8.886 255.044 169.002 43.434 1.280 957.000 2.656 4.199 96.042 9.070 3.463 -32.626 -30.515 -541.000 -18.299 -3.705 -216.710 -19.990 34.652 -56.939
Largest revenues
Average Common Equity (in millions)
‘11 Common Equity (in millions)
473.145 329.013 26.780 203.044 19129.000 263.148 4573.500 1336.549 537.581 3292.318 115.091 2242.950 2302.159 2962.883 73.676 2548.228 1734.715 457.994 14.713 12084.000 33.744 68.600 1592.580 187.686 308.395 856.136 653.679 7674.500 28.944 5.256 224.793 12.790 -34.918 -154.367
555.180 363.167 37.739 252.589 21428.000 347.232 5063.000 1457.450 607.307 3295.550 120.029 2387.800 2217.089 3220.238 76.273 2667.717 1813.258 470.397 14.389 12418.000 35.236 70.164 1975.688 193.289 308.846 852.000 1436.837 7716.000 23.909 4.762 193.301 7.789 -10.051 -158.820
‘10 Common Equity (in millions)
391.110 294.859 15.822 153.499 16830.000 179.064 4084.000 1215.648 467.856 3289.086 110.153 2098.100 2387.229 2705.527 71.079 2428.738 1656.173 445.592 15.037 11750.000 32.253 67.035 1209.473 182.084 307.944 860.272 -129.480 7633.000 33.979 5.751 256.285 17.791 -59.786 -149.914
Industry Sector
Energy Energy Service Manufacturing Energy Energy Energy Energy Service Energy Manufacturing Energy Energy Energy Energy Financial/Banks Energy Financial/Banks Service Energy Technology Manufacturing Energy Energy Financial/Banks Energy Energy Energy Energy Energy Energy Service Energy Energy
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
ONEOK Inc. Williams Cos Inc. (The) Devon Energy Corp ONEOK Partners LP Chesapeake Energy Corp Williams Partners LP OGE Energy Corp. Helmerich & Payne Inc. Alliance Resource Partners LP Alliance Holdings GP LP Magellan Midstream Partners LP SemGroup Corp Dollar Thrifty Automotive Group Inc. BOK Financial Corp SandRidge Energy Inc Unit Corp Continental Resources Inc LSB Industries Inc Matrix Service Co Sonic Corp AAON Inc BancFirst Corp Gulfport Energy Corp Blueknight Energy Partners LP Southwest Bancorp Inc GMX Resources Inc Ram Energy Resources Inc PostRock Energy Corp Orchids Paper Products Co Panhandle Oil & Gas Inc ADDvantage Technologies Group Inc Educational Development Corp GrayMark Healthcare Inc Syntroleum Corp
‘11 Total Revenues (in millions)
13,680.317 9,972.000 9,855.000 9,700.602 9,486.000 6,075.000 3,772.500 2,402.100 1,710.265 1,709.904 1,630.916 1,589.602 1,536.079 1,332.045 1,215.923 1,009.592 877.511 724.215 604.149 550.036 259.701 250.448 173.285 161.763 150.943 114.245 100.712 99.064 92.837 44.866 38.555 27.212 19.354 4.919 SOURCE: CAPITAL IQ SOURCE: S&P CAPITAL IQ
SOURCE: SOURCE: S&P CAPITAL CAPITAL IQ IQ
Best dividends Rank
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17
Dividend Yield June ‘11 (Percent)
Company Name
Educational Development Corp ONEOK Partners LP Williams Partners LP Magellan Midstream Partners LP Alliance Resource Partners LP Alliance Holdings GP LP Orchids Paper Products Co ONEOK Inc. OGE Energy Corp. Williams Cos Inc. (The) BancFirst Corp BOK Financial Corp Chesapeake Energy Corp AAON Inc Panhandle Oil & Gas Inc Devon Energy Corp Helmerich & Payne Inc.
Stock Price June 2011
Dividend Rate
5.39 42.65 54.18 59.73 77.45 49.88 12.65 74.01 50.32 30.25 38.60 54.77 29.69 21.84 29.49 78.81 66.12
0.48 2.34 2.87 3.08 3.56 2.22 0.40 2.24 1.50 0.80 1.00 1.10 0.35 0.24 0.28 0.68 0.24
8.9 5.5 5.3 5.2 4.6 4.5 3.2 3.0 3.0 2.6 2.6 2.0 1.2 1.1 0.9 0.9 0.4
Energy major Rank Company Name
SOURCE: CAPITAL SOURCE: S&P CAPITAL IQ IQ
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
LSB Industries Inc Helmerich & Payne Inc. PostRock Energy Corp Gulfport Energy Corp SandRidge Energy Inc Devon Energy Corp Chesapeake Energy Corp Ram Energy Resources Inc Alliance Resource Partners LP ONEOK Partners LP Alliance Holdings GP LP Unit Corp Magellan Midstream Partners LP BOK Financial Corp OGE Energy Corp. BancFirst Corp Dollar Thrifty Automotive Group Inc. Panhandle Oil & Gas Inc Williams Partners LP ONEOK Inc. Blueknight Energy Partners LP Educational Development Corp AAON Inc ADDvantage Technologies Group Inc Matrix Service Co Southwest Bancorp Inc Orchids Paper Products Co Continental Resources Inc Sonic Corp SemGroup Corp Williams Cos Inc. (The) GMX Resources Inc GrayMark Healthcare Inc Syntroleum Corp
Percent Change in Net Income ‘10 to ‘11
707.8 217.3 173.6 108.5 103.9 89.7 70.7 65.0 48.4 42.2 40.2 31.7 26.5 18.3 18.0 9.8 8.6 1.8 1.0 -4.2 -5.6 -24.1 -25.7 -34.4 -42.8 -47.1 -60.1 -62.9 -65.3 -101.0 -276.2 -360.5 -406.2 -518.8
‘11 Net Income (in millions)
71.395 395.811 41.468 75.432 17.485 5811.000 1128.000 -3.705 354.126 605.852 192.001 169.002 338.050 256.880 321.600 43.434 120.689 8.886 1179.000 323.641 -18.756 1.280 18.444 2.656 9.070 7.672 4.199 96.042 11.594 -32.626 -541.000 -211.343 -19.990 -18.299
‘10 Net Income (in millions)
‘11 Return on Average Equity (in percent)
8.838 124.755 -56.316 36.186 -448.807 3064.000 661.000 -10.593 238.635 426.111 136.943 128.290 267.167 217.086 272.500 39.569 111.113 8.727 1167.000 337.750 -17.761 1.686 24.835 4.050 15.850 14.491 10.512 258.649 33.441 3364.049 307.000 -45.891 -3.949 -2.957
35.0 13.3 NM 28.7 -4.7 30.3 7.9 -70.5 74.1 18.4 58.4 9.7 25.3 10.0 14.3 9.5 22.5 12.1 25.8 14.1 NM 8.7 16.0 7.9 4.8 1.1 6.1 6.0 43.3 -3.8 -7.0 -96.4 -156.3 -63.2
Rank Company Name
Score
1 2 3 4 5
1.00 2.67 2.67 4.00 4.67
Dollar Thrifty Automotive Group Inc. Educational Development Corp Sonic Corp ADDvantage Technologies Group Inc GrayMark Healthcare Inc
One Year Total Return (Stock and dividends) in percent
73.1 6.2 37.2 -7.8 -74.0
Rank
Percent Change in Revenues ‘10 to ‘11
Rank
1 3 2 4 5
0.48 -4.77 -3.33 -15.71 -12.46
1 3 2 5 4
Percent Change in Earnings Per Share ‘10 to ‘11
-1.2 -23.3 -65.5 -35.0 -203.3
Service OTC Rank Company Name
Score
1 2 3
1.33 2.33 2.33
-12.5 -58.3 -35.2
Avalon Correctional Services Inc Enxnet Inc Vaughan Foods Inc
Rank
Percent Change in Revenues ‘10 to ‘11
1 3 2
12.1 -100.0 3.2
Rank
Percent Change in Earnings Per Share ‘10 to ‘11
1 -10.7 3 110.0 2 -1400.0
Rank Company Name
1 2
Beard Co Reserve Petroleum Co
Score
1.33 1.67
One Year Total Return (Stock and dividends) in percent
-73.5 80.9
Rank
Percent Change in Revenues ‘10 to ‘11
2 1
220.1 4.1
150.3 82.8 81.9 81.3 48.3 50.1 40.6 43.3 42.2 34.8 77.3 23.6 30.5 31.5 69.2 43.7 45.5 -2.2 -39.6 12.8 -31.4 -4.2 -10.4
Rank
Rank
1 2 3 4 8 7 13 11 12 14 5 17 16 15 6 10 9 19 23 18 22 20 21
67.5 75.9 43.5 24.0 24.0 33.6 20.0 7.3 11.5 21.2 6.7 -7.8 1.1 12.4 7.2 2.4 -3.2 16.9 -8.8 -6.8 22.7 6.0 -55.6
2 97.6 1 96.4 3 214.4 6 57.3 5 39.7 4 30.4 9 44.0 13 30.4 12 17.4 8 -3.5 15 -4.7 21 496.3 18 96.4 11 -4.3 14 -277.4 17 -44.3 19 -64.1 10 -101.0 22 58.3 20 1.9 7 -482.5 16 -219.6 23 -340.0
Rank.
3 4 2 7 9 11 8 10 12 14 16 1 5 15 21 17 18 19 6 13 23 20 22
Rank Company Name
Score
One Year Total Return (Stock and dividends) in percent
1 2 3
1.00 2.00 3.00
222.5 42.3 -1.1
LSB Industries Inc AAON Inc Orchids Paper Products Co
Rank
1 2 3
Percent Change in Revenues ‘10 to ‘11
33.6 14.6 -1.2
Rank
Percent Change in Earnings Per Share ‘10 to ‘11
Rank
1 2 3
725.00 -23.79 -60.69
1 2 3
CAPITAL SOURCE: SOURCE: S&P CAPITAL IQ IQ
Manufacturing OTC Rank Company Name
Score
One Year Total Return (Stock and dividends) in percent
1
1.00
-36.4
Greystone Logistics Inc
Rank
1
Percent Change in Revenues ‘10 to ‘11
Rank
Percent Change in Earnings Per Share ‘10 to ‘11
Rank
1
-450.0
1
22.7
SOURCE: S&P CAPITAL SOURCE: CAPITALIQ IQ
Best earnings per share growth
Rank
1 2 4 3 5
Rank
2 1 3
CAPITAL SOURCE: SOURCE: S&P CAPITAL IQIQ
Energy OTC
2.00 2.33 2.67 5.67 7.33 7.33 10.00 11.33 12.00 12.00 12.00 13.00 13.00 13.67 13.67 14.67 15.33 16.00 17.00 17.00 17.33 18.67 22.00
Manufacturing major
CAPITAL IQ SOURCE: SOURCE: S&P CAPITAL IQ
One Year Total Return (Stock and dividends) in percent
Gulfport Energy Corp SandRidge Energy Inc Helmerich & Payne Inc. Alliance Resource Partners LP Alliance Holdings GP LP Unit Corp ONEOK Partners LP Chesapeake Energy Corp OGE Energy Corp. Magellan Midstream Partners LP ONEOK Inc. PostRock Energy Corp Devon Energy Corp Williams Partners LP Williams Cos Inc. (The) Matrix Service Co Continental Resources Inc SemGroup Corp Ram Energy Resources Inc Panhandle Oil & Gas Inc GMX Resources Inc Blueknight Energy Partners LP Syntroleum Corp
Percent Change in Earnings Per Share ‘10 to ‘11
Percent Change in Revenues ‘10 to ‘11
SOURCE: CAPITALIQIQ SOURCE: S&P CAPITAL
CAPITAL SOURCE: SOURCE: S&P CAPITAL IQ IQ
Service major
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23
Score
One Year Total Return (Stock and dividends) in percent
Rank
Percent Change in Earnings Per Share ‘10 to ‘11
Rank
1 2
52.6 36.0
1 2
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
LSB Industries Inc PostRock Energy Corp Helmerich & Payne Inc. Gulfport Energy Corp SandRidge Energy Inc Devon Energy Corp Ram Energy Resources Inc Alliance Resource Partners LP ONEOK Partners LP Alliance Holdings GP LP Chesapeake Energy Corp Unit Corp BOK Financial Corp OGE Energy Corp. BancFirst Corp Panhandle Oil & Gas Inc Dollar Thrifty Automotive Group Inc. Magellan Midstream Partners LP Williams Partners LP ONEOK Inc. Educational Development Corp AAON Inc ADDvantage Technologies Group Inc Matrix Service Co Orchids Paper Products Co Continental Resources Inc Sonic Corp Southwest Bancorp Inc SemGroup Corp GrayMark Healthcare Inc Blueknight Energy Partners LP Williams Cos Inc. (The) Syntroleum Corp GMX Resources Inc
Percent Change in Earnings Per Share ‘10 to ‘11
725.0 496.3 214.4 97.6 96.4 96.4 58.3 57.3 44.0 39.7 30.4 30.4 18.2 17.4 9.7 1.9 -1.2 -3.5 -4.3 -4.7 -23.3 -23.8 -35.0 -44.3 -60.7 -64.1 -65.5 -73.8 -101.0 -203.3 -219.6 -277.4 -340.0 -482.5
‘11 Earnings Per Share
‘10 Earnings Per Share
3.30 4.28 3.71 1.66 -0.09 13.53 -0.05 7.33 2.34 3.20 1.50 3.56 3.77 3.30 2.83 1.06 4.20 3.00 3.14 3.04 0.33 0.74 0.26 0.34 0.57 0.55 0.19 0.17 -0.79 -0.91 -1.63 -0.94 -0.22 -6.64
0.40 -1.08 1.18 0.84 -2.51 6.89 -0.12 4.66 1.63 2.29 1.15 2.73 3.19 2.81 2.58 1.04 4.25 3.11 3.28 3.19 0.43 0.97 0.40 0.61 1.45 1.53 0.55 0.65 81.26 -0.30 -0.51 0.53 -0.05 -1.14
CAPITALIQIQ SOURCE: SOURCE: S&P CAPITAL
CAPITAL IQ SOURCE: SOURCE: S&P CAPITAL IQ
BULLETIN BOARD STOCKS HAD ABOUT AS MANY NEGATIVES AS POSITIVES AMONG FACTORS USED IN OKLAHOMA INC. RANKINGS
State pink sheet stocks not so pink BY RICHARD MIZE Real Estate Editor richardmize@opubco.com
million and net loss of $1.977 million.
Tulsa company Greystone Logistics designs, manufactures, sells and leases plastic pallets for the food and beverage, automotive, chemical, pharmaceutical and consumer product industries.
Avalon Correctional Energy, plastics, multimedia technology and corrections define Oklahoma’s top companies among the pink sheets — publicly traded but over the counter, not listed on a stock exchange. Of the top six, two are energy companies, Reserve Petroleum Co. and Beard Co., both in Oklahoma City. The plastics company is manufacturer-recycler Greystone Logistics in Tulsa. The tech company is EnXnet Inc., also in Tulsa. The corrections company is Avalon Correctional Services Inc., based in Oklahoma City. Vaughan Foods Inc. in Moore, No. 6 on the Oklahoma Inc. list, sold to Reser’s Fine Foods Inc. in Beaverton, Ore., and is no longer traded, so it’s out. As usual, the numbers weren’t all that defined among the Bulletin Board stocks, with just about as many negatives as positives among the factors going into the Oklahoma Inc. rankings. Below are snapshots of the top five overthe-counter companies.
Reserve Petroleum I No. 1, Reserve Petroleum Co., trading symbol RSRV. The company, founded in 1931, is in oil and natural gas exploration and development and minerals management mainly in Oklahoma, Texas, Kansas and Arkansas. It owned nonproducing mineral interests in 260,470 gross acres; royalty interests in 23 gross wells; and held interests in about 660 producing properties as of March 31, according to Bloomberg BusinessWeek. Cameron R. McLain has been CEO since 2009, president since 2008 and exploration manager since 1982. The company has eight employees and offices at 6801 Broadway Extension, Suite 300. Its website is www.reservepetro.com. As of June 30, Reserve Petroleum, which was No. 4 in the Oklahoma Inc. rankings last year, had a one-year return on stocks and dividends of 80.9 percent; a 4.1 percent increase in revenues; and increase in earnings per share of 36 percent. The company had a market capitalization of $58.765 million, revenues of $12.6 million and net income of $4.7 million.
Beard Co. I No. 2, Beard Co., trading symbol BRCO. The company dates to a sole proprietorship started by founder Joseph G. Beard in 1921 when he drilled his first producing well in Stephens County. It has offices at 301 NW 63, Suite 400. Its website is www.beardco.com. Beard, now led by Herb Mee Jr., president, continues with restructuring begun in late 2010. The company downsized, reducing expenses by about 35 percent; eliminated management perks; and adopted a deferred stock compensation plan for officers and directors to conserve cash. The company said it struggled with operations in the Dilworth Field in northern Oklahoma, its primary asset, in the first four months of this year, but that new financing and infrastructure repair “for the first time, positioned us to aggressively reduce bottom-hole pressures, which should allow us to achieve our ultimate goal of matrix production.” Beard, which was No. 3 in the Oklahoma Inc. rankings last year, had a one-year loss on stocks and dividends of 73.5 percent; a 220.1 percent increase in revenues; and increase in earnings per share of 52.6 percent. The company had a market capitalization of $8.428 million, revenues of $1.149
I No. 3, Avalon Correctional Services Inc., trading symbol CITY. Donald E. Smith founded Avalon in 1985 as an alternative incarceration for drunken drivers. The company has expanded to 10 locations and 2,600 beds. The company operates facilities and manages programs in Oklahoma, Texas and Wyoming, with plans to expand into other states. Smith continues as chairman and chief executive officer. The recession and declining state revenues caused Avalon to concentrate on “new opportunities in existing community corrections operations” and in states new to “the positive results of utilizing community corrections programs,” Smith said in a shareholder letter posted on the company website, www.avaloncorrections. com. In Oklahoma, Avalon closed a leased facility in Tulsa in late 2010, and new projects were put on hold. However, Smith said, “Our optimism about the company’s future is greater today than when we started the company in 1985. Our mission continues to be offering cost-effective alternatives with lower recidivism rates to the everincreasing prison population. Virtually all states and governmental agencies have experienced tremendous increases in the cost of maintaining and operating their prison systems. Many states are evaluating their incarceration policies and considering the utilization of a greater number of community-based corrections beds and services to reduce costs and reduce the rate of recidivism while continuing to provide public safety. We believe we have an excellent opportunity to participate in this national movement to significantly increase the utilization of community based correctional services.” Avalon, which was not in the Oklahoma Inc. rankings last year, had a one-year loss on stocks and dividends of 12.5 percent; a 12.1percent increase in revenues; and loss in earnings per share of 10.7 percent. The company had a market capitalization of $11.9 million, revenues of $26.453 million and net income of $6.375 million.
Greystone Logistics I No. 4, Greystone Logistics, trading symbol GLGI. The Tulsa company, founded in 1968 as a marine paint manufacturer, suffered significant losses before going dormant, then several years ago launched a high-risk, capital-intensive plan to become a leading manufacturer in the growing plastic pallet industry. Warren Kruger, who had placed a significant private investment, took over as CEO in 2003. Greystone, with a manufacturing plant in Bettendorf, Iowa, designs, manufactures, sells and leases plastic pallets for the food and beverage, automotive, chemical, pharmaceutical and consumer product industries. “The technology in its injection molding equipment, proprietary blend of recycled petrochemical resins and patented pallet designs allow production of high-quality pallets more quickly and at a lower cost than competitors. The recycled plastic for its pallets helps control material costs while reducing environmental waste and provides cost advantages over users of virgin resins,” the company says on its website, www.greystone logistics.com. “In five years Greystone has moved from the research and development phase to become the leading pallet manufacturer in the beer industry with over 3 million of their patented recy-
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cled plastic pallets delivered to major customers. In the next five years, the company intends to continue double-digit growth in sales in manufacturing and leasing with exceptional return on assets.” Greystone, which was not in the Oklahoma Inc. rankings last year, had a one-year loss on stocks and dividends of 36.4 percent; a 22.7 percent increase in revenues; and loss in earnings per share of 450 percent. The company had a market capital-
ization of $1.828 million, revenues of $19.313 million and net loss of $865,000.
EnXnet Inc. I No. 5, EnXnet Inc., trading symbol, EXNT. Tulsa-based EnXnet, formerly Southern Wireless, was founded in 1999 and develops, markets and licenses technologies, business strategies and practices for multimedia management products and services. Its products include DVDplus, a dualsided hybrid optical disc
with DVD on one side and CD on the other; Thin Disc, an optical disc with reduced thickness; Disc Security Tag, which provides unique item identification for customers and clients; and others. The company, in partnership with BAHF LLC, develops Medical D-TectOR, a “retained foreign object detection system, which detects surgical instruments and surgical products, such as gauze, laparoscopy sponges, and operating room towels that
are left in the body during a surgical procedure,” according to Yahoo! Finance. Ryan Corley, is chairman, CEO and president. EnXnet “spent its early years finding and developing new technologies with great potential for making valuable impacts in the multimedia environment,” the company says on its website, www.enxnet. com. “Our unique products offer our clientele new methods to deter theft, improve listening and viewing experiences and present information in exciting interactive formats. These technologies and related products, while at the leading edge in their respective applications, are affordable and provide needed solutions to multiple problems.” EnXnet, No. 5 in the Oklahoma Inc. rankings last year, had a one-year loss on stocks and dividends of 58.3 percent; a 100 percent decrease in revenues; and increase in earnings per share of 110 percent. The company had a market capitalization of $2.152 million, no revenues and net loss of $220,000.