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MIDCENTRAL ENERGY I PROFILE
INthe 1968 novel “True Grit” by Charles Portis, young Mattie Ross explained why she sought out hard-drinking US Marshal Reuben ‘Rooster’ Cogburn: “They told me you had true grit and that is why I came to you.” MidCentral Energy’s GRIT philosophy is part of the company’s USP that continues attracting customer and talent alike.
MidCentral Energy began in 2010 as a drilling-focused business serving West Texas and Oklahoma. In 2019, owner Kristian Kos expanded the company into completions, then built up the man ufacturing arm of MidCentral. Since this diversification at MidCentral, Senior Vice President Justin Loven explained how the business model has evolved and strengthened: “In 2018, drilling was 100% of the revenue: by 2021 our revenue streams were much more diversified, consisting of a strong contribution from completions and manufacturing as well.”
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MidCentral Energy has 12-years experience providing drilling, completion and manufacturing services to the energy industry. CEO, Kristian Kos, Senior Vice President Justin Loven, and Management Consultant Jacquelyn Berney discuss the company and its distinctive corporate philosophy in conversation with Phil Nicholls.
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Mr Loven outlined the range of offerings at MidCentral: “For completions site services we offer best in class large bore iron rental, sales, and services. In our drilling site services business, we offer BOP assembly, disassembly, and testing. Finally, in our manufacturing and remanufacturing segment, we have the best power end rebuild teams in the nation.”
As the market evolved, so did MidCentral’s business model. Currently, the company employs 180 people with headquarters in Oklahoma City and field offices in Colorado, Oklahoma, Pennsylvania, Utah, and Texas.
MidCentral has a strong foothold in the Permian Basin in West Texas and New Mexico a 220,000km2 sedimentary basin that accounts for 50% of the oil and gas activity in the US. About half of MidCentral’s services are performed in the Permian, with the remainder to be found in other basins across the US.
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Downturn opportunities During the downturn, MidCentral invested heavily in the com pany. “While other organizations were pumping the brakes, we were pumping the gas!” Mr Loven said. Since prices were low, MidCentral identified the opportunity and increased its asset base and inventory levels. When the upswing arrived, MidCentral was prepared to operate, with a strong foundation in place.
GRIT to the core At the heart of the MidCentral Energy Services caring corporate culture is GRIT. As an acronym, GRIT was created and adopted to encompass the company’s core values: Grit, Reciprocity, Innovation and Trust. These foundational principles are ubiquitous throughout the company and evident through the services they deliver to the industry.
The MidCentral experience Working closely with customers and suppliers is a key aspect of MidCentral’s modus operandi. The company enjoys a network of supply chain touch points across the world. This diverse selec tion of suppliers gives MidCentral access to equipment which may not be available to competitors. Combined with its boosted inven tory, MidCentral is in a strong position to support its customer base-even with the current global supply chain disruptions.
In the near future, MidCentral will focus on scaling the business upon the MidCentral Business System platform “We have a proven
“There are two secret ingredients in our recipe,” Mr Loven said. “Number one is the culture of our organisation. We have a very strong culture with very strong core values, and exercising those values internally shows in our external performance. Number two, we are focused on service and being there for the customers, which we deliver on extremely well.”
Another innovation during the downturn was the development of a MidCentral app by a team of former MIT professors and students engaged by MidCentral for this project. Over the course of two years, the app was fine-tuned to refine MidCentral’s processes and assist both customers and the internal team monitor the progress of assets within the company. Version one of the app was designed for purely internal use. The updated second version of the app will be available to customers with an anticipated launch in the first half of 2023.
“The industry we’re in is a difficult one, and winning never comes easy, but that never stops us from achieving results. We’re a big believer that our GRIT core values drive our current and future success as a team,” Mr. Loven explained.
“Our approach was driven by a core belief in what we offer our customer base. Our job is to focus on efficiency and drive to opti mise our customer’s bottom line,” added Kristian Kos.
ENERGY I PROFILE
MIDCENTRAL
“From a holistic perspective,” added Management Consultant Jacquelyn Berney, “I have witnessed how much MidCentral cares about their people , it is an innate part of their culture.”
“MidCentral’s long-term objective is to continue to drive efficiency, increasing our customers’ bottom line across the energy space at large,” said Mr Kos, “The purpose of this and our adopted tech nology systems is to optimise throughput for our company, which in turn can drive significant efficiency gains for our cus tomers. This is an exceptionally exciting place to be, given the current dynamics of the world.”
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Moving forward, MidCentral Energy continues to build the company’s experience on the solid foundations of its iconic true GRIT values. “We are all so very proud of our culture and team at MidCentral,” Mr. Kos said, “And we plan to scale this out across the energy space to meet our current and future customers needs!” n
MidCentral Energy business model,” concluded Mr Loven, “Consisting of centralized support and trust in decentralised leadership. Energy as a whole is an underserved market, and we plan to scale the MidCentral model and ultimately diversify our energy-focused products and services. The domestic opportunity in energy is so vast, and as such we plan to continue to focus these efforts in and around the US.”
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