Oklahoma Inc. 2013 Edition
Read the 2013 edition of The Oklahoman's Oklahoma Inc. special publication.
Oklahoma energy firms shine in latest rankings Adam Six of the eight Another big year Wilmoth leading energy for the oil industry awilmoth@ opubco.com companies this helped boost the year are midstate economy and stream partnerland eight energy ships involved in firms on the Okla- ENERGY EDITOR pipelines, prochoma Inc. top 10. While energy led the way essing plants and other ways to again, the tide has shifted, at move and treat oil and natural least among the top ranking gas. A seventh company builds storage tanks to support that companies on the list. business. Last year, oil and natural gas producers led the list. While much of the energy industry is experiencing growth, Tulsa money manager Jake Dollarhide said midstream companies are benefiting from increased oil and natural gas production without facing the risk of commodity prices. “Midstream is the sweet spot, dragging a lot of investors into the play,” said Dollarhide, CEO of Longbow Asset Management Co. in Tulsa. “Midstream companies are making a toll on the oil and gas regardless of prices.” Only four companies from last year’s top 10 have claimed SEE RANKINGS, PAGE 2T PHOTO BY STEVE SISNEY, THE OKLAHOMAN Rankings: Changes are seen FROM PAGE 1T seats among the elite again this year: Compressco Partners, SemGroup Corp., Matrix Service Co. and Orchids Paper Products Co. Three of the four are related to midstream oil and natural gas operations. Ranking methods For more than 15 years, The Oklahoman, with the help of S&P Capital IQ, has ranked the state’s publicly traded companies using a system aimed at evaluating profitable growth. Companies are ranked on three measures, and those with the best composite score rise to the top. To measure growth, S&P ranked each company according to how quickly its revenues grew in the year ending June 30. To gauge profitability, each company was ranked according to its percentage change in earnings per share over the period. NGL Energy Corp. led both of those categories, boasting a nearly 279 percent rise in revenues and an almost 337 percent improvement in earnings per share. The Oklahoma Inc. rankings also consider change in share price, including dividends, over the period. By that measure, Gulfport Energy Corp. generated the best reward for its shareholders. Typically, it’s tough for any one company to excel in all three rankings, which helps weed out firms that get a rankings boost in a category by rebounding from a tough year. We take the rankings and average them to produce our overall list. NGL Energy claimed the top spot after leading two of the three categories and finishing with an average of 4.0. Compressco Partners, which ranked fifth in total return and revenue growth, claimed second overall with an average score of 6.0. ENERGY BOOM BENEFITS STATE AS LOCAL ECONOMIES DIVERSIFY Despite efforts to increase the state’s economic diversity, energy continues to lead the state. The energy boom has benefited all of Oklahoma, said Roy Williams, president and chief executive officer of the Greater Oklahoma City Chamber. “The successful energy companies are very committed to the community,” he said. “They’re significant contributors to nonprofits, the arts and to sports and recreational and cultural activities. ... They’re huge supporters of our educational institutions because they draw from them for employees.” State and city leaders worked hard for years to attract and grow companies from outside the energy sector to help protect the economy from another energy bust. Despite the energy sector’s continued dominance on Oklahoma Inc., Williams said the local economies are diverse. “We have a much more diversified economy today than what we’ve ever had in our history,” Williams said. “Whether you look at the gross metropolitan product, employment or annual earnings, we now have a very vibrant and diverse economy, including aviation and aerospace, a large bioscience sector and a hospitality industry, which we haven’t had before a decade ago. “You don’t want to build a community on one economy. You want diversification.” Still, some in the oil industry say the sector’s historic boom-bust cycle may be over. Harold Hamm, chairman and CEO of Oklahoma City-based Continental Resources Inc., said the state and city should continue to diversify their economies, but that there is little risk of an oil bust anytime soon. “The boom-bust cycles of the past historically have been because you have had such a small petroleum demand,” Hamm said. “Back in the ’20s, there were not a whole lot of cars. It didn’t take much to glut the market. “Today, that’s changed. We have 90 million barrels per day of demand shared across the world. It’s not easy to glut that.” Others, however, are not so certain. “No industry is immune from a bust, particularly one with such a consistent history of them,” said Jake Dollarhide, CEO of Longbow Asset Management Co. in Tulsa. “We’re experiencing a miniboom in oil now because of alternative drilling technologies. But it’s expensive, and it’s not as profitable as many companies hoped. “Hopefully the next bust doesn’t happen for 10 or 20 years down the line, but there will be another bust.” One Year Total Return (Stock and dividends) in percent Rank Prior Rank Rank Company Name Score 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 4.00 6.00 7.33 10.67 11.00 11.33 11.33 12.67 12.67 14.33 15.00 15.33 16.00 16.33 17.33 17.67 18.00 19.00 19.00 20.00 20.67 21.00 21.33 22.00 22.33 22.67 22.67 23.33 23.33 23.67 24.67 26.00 28.33 29.67 31.00 31.00 34.33 NGL Energy Partners LP Compressco Partners LP AAON Inc. Helmerich & Payne Inc. Access Midstream Partners LP Rose Rock Midstream LP Alliance Holdings GP LP SemGroup Corp. Orchids Paper Products Co. Matrix Service Co. Sonic Corp. Continental Resources Inc. Alliance Resource Partners LP Magellan Midstream Partners LP Gulfport Energy Corp. Southwest Bancorp Inc. Williams Cos Inc. BancFirst Corp. Apco Oil and Gas International OGE Energy Corp. BOK Financial Corp. Blueknight Energy Partners LP WPX Energy Inc. Chesapeake Energy Corp. Syntroleum Corp. Panhandle Oil & Gas Inc. Laredo Petroleum Holdings ONEOK Inc. Unit Corp. ADDvantage Technologies Group SandRidge Energy Inc. ONEOK Partners LP Williams Partners LP PostRock Energy Corp. Educational Development LSB Industries Inc. Devon Energy Corp. NM: Not meaningful NR: Not ranked Prior Rank Rank Company Name NR 1 6 NR 5 NR 4 NR NR NR Steve Lackmeyer slackmeyer@ opubco.com BUSINESS WRITER With the prospect of General Electric joining the Oklahoma City skyline with the construction of a new research center, the range of public companies planting their flags locally has spread far beyond hometown favorites like Devon Energy and Chesapeake Energy to global players including Boeing and even Rolls-Royce. Without such public companies, the skyline would certainly lack the new 50-story Devon Energy Center, a renovated Braniff Building and SandRidge Building, or the bustling Boathouse District along the Oklahoma River. Their generosity is felt throughout the community. But amid the growing presence of diverse publicly-held companies, Oklahoma City in 2013 also saw the downside of the market as investordriven challenges ousted CEOs at both Chesapeake and SandRidge Energy, and led to layoffs at Chesapeake. Long-term benefits Roy Williams, president of the Greater Oklahoma City Chamber, advises residents to keep perspective of the long-term benefits of public compa- Percent Change in Revenues ‘12 to ‘13 Rank Percent Change in Earnings Per Share ‘12 to ‘13 Rank Market Value (in Millions) June 28, 2013 ‘13 Total Revenues (in Millions) Drama student Jackson Bugg, 17, dances with a paper fish during an assembly at John Marshall Mid-High School in Oklahoma City. Devon Energy gave the school its $25,000 Devon Science Giant grant during a surprise end to an assembly. The money will be used to build a Touch Tank interactive marine ecosystems lab. PHOTO BY NATE BILLINGS, THE OKLAHOMAN ARCHIVES nies investing in the community. “What people tend to forget is there was a time when we didn’t have either one (Chesapeake or SandRidge),” Williams said. “Chesapeake came out of nowhere to employing 4,000. SandRidge didn’t even exist and then went to buying the KerrMcGee campus and employing hundreds.” Despite turmoil that included CEOs Aubrey PSM Holdings Inc. Greystone Logistics Inc. Reserve Petroleum Co. MacroSolve Inc. Enxnet Inc. St Joseph Inc. Webco Industries Inc. Nitro Petroleum Inc. Empire Petroleum Corp. GrayMark Healthcare Inc. Score 2.33 2.67 3.33 4.00 5.67 6.00 6.67 7.33 7.67 9.33 ‘13 Return on Average Equity (in percent) ‘12 Net Income (in Millions) 46.1 10 278.8 1 336.6 1 1,618.878 5,477.288 54.957 67.9 5 21.9 5 32.1 8 295.348 119.993 16.979 78.3 3 9.6 14 59.5 5 810.559 312.898 32.844 44.7 12 10.9 13 35.7 7 6,648.115 3,352.525 733.957 84.1 2 28.6 3 -40.5 28 8,433.408 788.642 203.234 57.4 8 7.3 15 20.1 11 788.538 615.938 32.198 62.5 6 11.7 10 0.3 18 3,816.266 2,162.114 213.369 69.3 4 -11.7 32 254.5 2 2,286.949 1,205.628 65.339 55.9 9 2.8 17 13.9 12 206.876 105.654 10.734 37.5 15 17.3 7 -11.3 21 406.108 841.876 18.427 45.2 11 -1.7 24 21.4 10 812.515 534.723 39.005 29.2 18 20.2 6 -11.4 22 15,976.437 2,983.682 728.504 34.9 17 11.7 11 -10.3 20 2,610.696 2,162.477 364.159 60.9 7 -8.6 28 4.0 14 12,354.006 1,705.396 470.932 128.3 1 -6.3 26 -30.0 25 3,651.735 242.574 104.772 40.3 13 -19.9 36 118.9 4 259.948 96.674 13.662 17.2 19 -9.3 29 48.4 6 22,177.011 7,198.000 607.000 14.1 23 0.1 19 4.0 15 710.167 267.514 52.131 -36.1 37 22.6 4 3.8 16 339.455 147.289 39.758 35.3 16 -4.8 25 -2.3 19 6,763.871 3,611.100 338.800 14.9 22 -1.6 23 1.2 17 4,402.733 1,416.830 337.843 40.0 14 3.1 16 -75.0 33 198.928 185.943 25.612 17.1 20 -19.2 35 29.8 9 3,799.364 2,950.000 -268.000 11.5 24 16.7 8 -161.4 34 13,585.936 14,607.000 -1,074.000 2.2 27 -52.4 37 223.3 3 68.531 6.773 3.624 -4.5 33 11.3 12 -13.7 23 234.270 55.534 8.424 -1.2 29 13.9 9 -63.0 30 2,660.814 638.109 41.665 0.5 28 0.3 18 -18.7 24 8,517.750 13,579.380 290.201 15.4 21 -1.5 22 -36.0 27 2,090.933 1,312.325 89.252 6.1 25 -11.9 33 13.3 13 22.795 33.478 1.750 -28.8 36 81.2 2 -219.8 36 2,330.572 2,895.573 -958.099 -3.3 32 -0.1 20 -32.8 26 10,900.144 10,748.883 801.646 5.2 26 -9.4 30 -48.4 29 21,357.285 7,018.000 1,158.000 -1.9 31 -1.1 21 -4,012.5 37 37.581 65.197 -37.425 -13.8 35 -6.5 27 -64.9 31 12.435 24.883 0.520 -1.6 30 -10.0 31 -66.0 32 682.461 712.413 25.627 -9.2 34 -14.7 34 -172.0 35 21,063.280 9,509.000 -1,732.000 One Year Total Return (Stock and dividends) in percent Rank -23.1 462.5 16.4 -40.0 -35.0 60.4 -9.6 -36.8 -71.4 -44.7 5 1 3 8 6 2 4 7 10 9 6.7 9.4 23.1 18.4 4.9 12.0 48.2 7.0 13.8 8.4 71.4 22.6 49.6 30.7 9.3 4.9 15.9 10.1 13.2 12.5 11.5 NM -5.0 -9.7 7.6 9.7 4.9 13.9 4.4 4.6 -42.9 18.0 13.1 NM 3.8 7.3 -8.2 Industry Sector Energy Energy Manufacturing Energy Energy Energy Energy Energy Manufacturing Energy Service Energy Energy Energy Energy Financial/Banks Energy Financial/Banks Energy Energy Financial/Banks Energy Energy Energy Energy Energy Energy Energy Energy Technology Energy Energy Energy Energy Service Manufacturing Energy SOURCE: S&P CAPITAL IQ TIES: The percent change in earnings per share was used as a tiebreaker Top OTC companies 1 2 3 4 5 6 7 8 9 10 ECONOMY | LAYOFFS IN 2013 PROVIDE REALITY CHECK FOR REGION ADAM WILMOTH, ENERGY EDITOR Top major companies 13 8 25 19 17 NR 23 9 3 6 16 1 27 4 15 34 2 20 NR 26 18 10 NR 11 12 22 NR 21 28 33 7 5 24 36 30 32 29 Public companies pay big dividends for area ALSO ... Percent Change in Revenues ‘12 to ‘13 Percent Change in Earnings Per Share ‘12 to ‘13 Rank Rank 118.4 3.8 30.2 48.7 0.0 -20.6 -13.9 2.0 0.0 -22.4 1 77.3 4 60.0 3 9.8 2 73.9 6 0.0 9 -40.0 8 -57.7 5 -1,400.0 7 0.0 10 -78.3 1 3 4 2 5 7 8 10 6 9 Market Value (in Millions) June 28, 2013 8.821 11.750 48.803 5.540 3.169 10.039 89.859 3.018 0.916 3.511 ‘13 Total Revenues (in Millions) 21.374 23.990 17.494 2.955 0.000 0.373 448.810 0.399 0.000 13.636 ‘12 Net Income (in Millions) -1.277 2.656 5.594 -0.853 -0.276 -0.724 7.239 -1.027 -0.226 -19.470 ‘13 Return on Average Equity (in percent) -19.6 NM 18.8 -685.1 NM NM 4.8 -171.9 -139.5 NM Industry Sector Financial/Banks Manufacturing Energy Technology Technology Service Manufacturing Energy Energy Service SOURCE: S&P CAPITAL IQ McClendon leaving Chesapeake and Tom Ward leaving SandRidge, Williams notes both companies still employ sizable workforces and are still significant contributors to community events and nonprofits. Mayor Mick Cornett has seen an influx of hundreds of jobs brought in by public companies including the relocated Continental Resources headquarters, Boeing relocating its engineering and training operations from Long Beach, Calif., and Wichita, Kan., and the pending site location announcement of a General Electric Global Research Center. Cornett noted the city, with the Greater Oklahoma City Chamber, has worked hard to expand the presence of public corporations locally, and for good reason. “In general, they have higher wages, better benefits than most business,” Cornett said. “Though job cuts are high profile, percentage-wise there are lower job cuts at larger businesses than small companies.” Love of community The very nature of public companies, especially those that start as homegrown private enterprises, translates into outside money coming into Oklahoma City, Williams said. “When these companies go public, it means they are growing fast and they need capital,” Williams said. “And that brings significant financial infusion that wasn’t here before.” The community contributions made by the city’s public companies range from free outdoor movie nights at the Myriad Gardens sponsored by Sonic, an array of recreational venues along the Oklahoma River created by Chesapeake, Devon and SandRidge, to a variety of nonprofits. “They have been phenomenally good corporate citizens and they have made huge contributions to our community,” Williams said. “They do this because they love our city, but also to recruit and retain good employees by building a better, more diverse community.” BAM into Oklahoma’s entertainment scene blog.newsok.com/bamsblog Acquisitions help power growth for Tulsa-based NGL Energy Tulsa-based NGL Energy Partners uses water trucks and pipelines to haul produced water from storage tanks to the partnership’s processing facilities. The water is then either recycled or dumped in disposal wells deep below the surface. PHOTOS PROVIDED BY NGL ENERGY PARTNERS NO. 1 | COMPANY HAS 23 TERMINALS IN ITS INVENTORY TULSA — Backed by 10 acquisitions over the past two years, Tulsa-based midstream partnership NGL Energy Partners soared to No. 1 on Oklahoma Inc. “Our objective was to put together a master limited partnership with multiple asset classes and segments,” CEO Michael Krimbill said. “That diversifies our risk. If one segment is doing well, that will offset any others that are not doing as well.” As it turns out, demand is strong for all of NGL Energy’s segments. NGL Energy is divided into four sections in the midstream oil and natural gas sector: crude oil logistics, water treatment services, natural gas liquids logistics and retail propane. Together, the company has 23 terminals, 4,000 rail cars, marine terminals, barges and tows. “We can go to a producer and say we can market your crude oil, we can market your liquids and we can get rid of your dirty Adam Wilmoth awilmoth@ opubco.com ENERGY EDITOR water,” Krimbill said. “We’re a bit of a one-stop shop. “We also wanted to be vertically integrated, taking product from the wellhead all the way to the end customers.” Oklahoma City money manger Greg Womack said the partnership’s use of multiple segments is an important part of why it has been so successful. “They complement each other,” said Womack, president of Womack Investment Advisers Inc. “It makes for good efficiencies of scale.” Multiple divisions also allow the partnership to grow more quickly. “When you’re acquiring as many businesses as we are, integration is always a concern,” Krimbill said. Michael Krimbill NGL Energy Partners CEO “With four segments, we have four separate management teams. So if we do one acquisition in each segment, even though the company has done four, each team only has to integrate one.” One of the NGL Energy’s fastest-growing segments has to do with water disposal and recycling. The partnership in September bought more wastewater disposal properties in the south Texas Eagle Ford basin for $116 million. “We can take it to distilled water quality, which is NGL Energy Partners’ water treatment division cleans produced water to betterthan-drinking-water quality. better than drinking water quality, and put it back into the lakes and streams. We’re the tech-heavy company in water disposal. While many in the oil and natural gas industry express concern about increasing regulation, such new rules actually benefit NGL Energy. “To the extent that regulations demand cleaner water, we can meet whatever water quality standards the states or federal government impose.” Drilling in new oil fields and dramatically increased activity in old oil fields have created demand for new pipelines and other methods of transportation, including rail and barges. “Having the assets we have like rail cars and barges allows us to take the right crude oil to the right end user.” Oklahoma City’s Compressco profits from niche energy market NO. 2 | COMPANY ADAPTS TO CHANGES IN THE OIL, NATURAL GAS INDUSTRY A rapidly changing oil and natural gas industry over the past decade has forced companies that service the industry to adjust as well. The companies that have adjusted quickly have gained both in market share and in profits. Oklahoma City-based Compressco Inc. surged to No. 2 on this year’s Oklahoma Inc. list as the company developed a new product to better take advantage of the new oil and gas industry. “Compressco has always been a niche market player. This year, we expanded that niche into an adjacent area,” President Ronald Foster said. Compressco is a spinoff of Tetra Technologies Co. that went public in 2011 as a master limited partnership. The company has more than 340 employees. Compressco’s primary product, the GasJack, is designed to increase production of older, dry natural gas wells. Over the past five years, the industry has quickly moved toward pricier oil and away from natural gas. The company’s new SuperJack is designed to help both oil producers and the environment. Adam Wilmoth awilmoth@ opubco.com ENERGY EDITOR When producers recover oil, natural gas is mixed with it. Historically, producers have vented that mixed gas out of storage tanks and into the atmosphere. New environmental regulations over the past several years have blocked the practice. Compressco’s SuperJacks help companies comply with those new rules by capturing the waste natural gas and allowing producers to use it and sell it. The new equipment also revives operations to an earlier, more profitable stage for the producers. GasJacks are used later in a well cycle to extend the life of a well. Foster compared the maintenance to buying new tires for an old car. SuperJacks, however, are installed at the beginning of the well’s life. “It’s the sexier side of the business,” Foster said. “We see it as a growing market, one that is sustainable for the future.” Manufacturing sector finds its role in state’s economy Though energy companies account for 28 of Oklahoma’s 37 publicly traded companies, their few manufacturing counterparts more than held their own in this year’s Oklahoma Inc. — as the only non-energy companies to break into the top 10. Tulsa-based AAON Inc. — which makes industrial and commercial air conditioning and heating equipment Paula primarily for the U.S. Burkes and Canada — shot to pburkes@ opubco.com No. 3 from No. 25 last year, while Pryorbased Orchids Paper BUSINESS WRITER Products Co. — which makes toilet paper, towels and napkins that are sold largely regionally — claimed the No. 9 spot, down six spaces from last year. Oklahoma City-based LSB Industries Inc. — which produces climate control devices and chemicals for mining and agriculture, for clients in Canada, the Middle East, Mexico, Central and South America, Europe, and South and East Asia — slipped to No. 36 from No. 32 last year, after taking the No. 1 spot in 2011. The three manufacturers’ gains in earnings per share ranged from 59.5 percent to 13.9 percent to a negative 66 percent, respectively. Two other Oklahoma manufacturing companies that are ranked on the over-the-counter list had a mixed bag on Oklahoma Inc. Tulsa-based recyclable plastic pallet manufacturer Greystone Logistics posted a gain in earnings per share of 60 percent, but Webco Industries Inc. — a Sand Springs company that makes carbon steel, stainless steel and other metal tubular products for various industries — posted a 13.9 percent drop in share price. Chuck Prucha, president of the Oklahoma Manufacturing Alliance, said economic uncertainty continues to be a serious problem as state manufacturers plan for the near future. “It’s important to remember the vast majority of production is done by small and medium-sized companies,” he said. “These manufacturers are flexible and better able than large companies to adapt to changing conditions. That’s a real advantage when dealing with economic uncertainty.” The manufacturing workforce is back above pre-recession levels, Prucha said. “Production output continues to increase, and if we can get to a more stable political climate, I think we will see a corresponding increase in employment,” he said. Within the industry some sectors are doing better than others, said Lynn Gray, an economist with the Oklahoma Employment Commission. The fabricated metal products subsector is growing employment at an annual rate of 5.4 percent, while food manufacturing is shedding jobs. Jake Dollarhide, CEO of Longbow Asset Management Co. in Tulsa, said manufacturing remains an important part of the state’s economy. With a talented workforce and reasonable operational and labor costs, Oklahoma has a competitive edge over neighboring states in attracting manufacturers, he said. Mike Turner, production manager, and Ronald Foster, Compressco president, stand next to a wellhead gas compressor being built at Compressco in Oklahoma City. PHOTOS BY PAUL B. SOUTHERLAND, THE OKLAHOMAN Climate control market heats up NO. 3 | AAON INC.’S STOCK VALUE HITS $1B IN SEPTEMBER TULSA — These are hot times for AAON Inc. — the Tulsa-based manufacturer of industrial heating, ventilation and air conditioning (HVAC) equipment. The company shot to No. 3 on the Oklahoma Inc. list, from No. 25 last year. Its earnings per share grew 59.5 percent; stocks and dividends, 78.3 percent; and revenues, 9.6 percent. Meanwhile, its stock market value hit $1 billion on Sept. 30 — the same day president and chief executive Norm Asbjornson rang the opening bell at Nasdaq. Asbjornson — who recently gave The Oklahoman a tour of the 1.3 million-square-foot plant situated on 91 acres at 2425 S Yukon Ave., in Tulsa — said his goal for the 25year-old, debt-free AAON is $1 billion in annual sales. The company is on track to exceed $320 million in total revenues this year, he said. AAON, which also has a 300,000-square-foot facility in Longview, Texas, ships about 1,250 HVAC units a month, mostly across the U.S., Asbjornson said. They’ve supplied some equipment to businesses in Canada and, this past year, to a large shopping center in Turkey, he said. The company has 100 percent of the business of Kroger groceries and Dillard’s stores, Asbjornson said, and 25 percent of Walmart stores. “We do a lot of fast-food restaurants,” he said, including the majority of Wendy’s restaurants, 70 percent of McDonald’s restaurants and the local Arby’s restaurants. A single unit sells for about $20,000, he said. Jake Dollarhide, chief executive of Longbow Asset Management Co. in Tulsa, said “AAON has taken off the last two Paula Burkes pburkes@ opubco.com BUSINESS WRITER years, particularly this last year, when its stock has almost doubled in price.” The HVAC business cycles with the economy, Dollarhide said. “2011 was tough, with what was happening in Europe spilling over into U.S. confidence,” he said. But AAON’s entry into the parts business over the past several years has helped its success, Dollarhide said. Plus building by big-box retailers is returning following the recession, he said. Asbjornson said commercial building hasn’t yet come back, based on the Architecture Billings Index, which leads actual building by nine to 12 months. “But I think it (a recurrence) is beginning to show up marginally,” he said, noting the index, which bombed in 2008 and crossed over the 50 percent line at the end of 2010, went positive a year ago. Asbjornson credits his company’s successful past year to the same thing that’s made it flourish since it formed in 1988 to acquire the former heating and air conditioning division of John Zink Co. “The reason we’re growing, when our industry isn’t, is we continue to take business away from our competitors,” Asbjornson said. How has it done that? By being the technological leader in the industry, he said. AAON, he said, features the biggest automatic sheet metal shop in the world, with multifunctional, multi-million-dollar machines that churn out parts for the compa- COMPANY PROFILES 1. NGL ENERGY PARTNERS LP I Address: 6120 S Yale Ave., Suite 805, Tulsa, OK 74136 I Phone: (918) 481-1119 I Website: www.nglenergy partners.com I Ticker: NGL I Exchange: NYSE I At the top: H. Michael Krimbill I Employees: 1,970 I Industry: Petroleum bulk stations and terminals I Summary: NGL Energy Partners retails, wholesales and stores propane and other natural gas liquids. 2. COMPRESSCO PARTNERS LP I Address: 101 Park Ave., Suite 1200, Oklahoma City, OK 73102 I Phone: 677-0221 I Website: www.compressco.com I Ticker: GSJK I Exchange: NAS I At the top: Ronald J. Foster I Employees: 420 I Industry: Oil and gas field services I Summary: Compressco Partners LP offers compression, liquids separation and gas metering services, as well as the GasJack units that perform these operations. 3. AAON INC. I Address: 2425 S Yukon Ave., 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: 1,450 I Industry: Refrigeration and heating equipment I Summary: AAON makes and markets air conditioning and heating equipment for commercial and industrial buildings, primarily in the U.S. 4. HELMERICH & PAYNE INC. I Address: 1437 S Boulder Ave. Suite 1400, Tulsa, OK 74119 I Phone: (918) 742-5531 I Website: www.hpinc.com I Ticker: HP I Exchange: NYSE I At the top: Hans Helmerich I Employees: 9,410 I Industry: Drilling oil and gas wells I Summary: Helmerich & Payne Inc. engages in the contract drilling of oil and gas wells in the United States and internationally. ny’s HVAC equipment. The shop, which operates 23 hours a day, builds 16,000 parts a day, or one part every 30 to 90 seconds, he said. “We never have more than three days’ worth of stock metal at any time,” Asbjornson said. “That requires a well-coordinated effort.” Asbjornson said AAON’s machines are better designed, more energy efficient and more easily maintained than those of its competitors. “Ours are set up for flexibility,” he said, “where customers can buy options, such as the ability to take humidity out of room and not cool it.” The company on May 22 announced a three-fortwo stock split of the company’s common stock to be paid in the form of a stock dividend on July 2. It also announced it, post split, was increasing its semiannual cash dividend 25 percent to 10 cents per share. Asbjornson said in a news release that he believed the decision would increase his compa- Norm Asbjornson stands by an industrial heating, ventilation and air conditioning unit that his Tulsa-based company, AAON Inc., manufactures. PHOTO BY PAULA BURKES, THE OKLAHOMAN ny’s liquidity in the market. On May 23, AAON opened a retail parts store on its premises, where HVAC repairmen and other contractors can buy compressors, motors and a multitude of other AAON parts and even aftermarket parts for HVAC systems. AAON parts, and AAON residential systems, sold to enrolled contractors, also can be ordered online. “The on-site store is a small part of our business, but an important part,” Asbjornson said, “kind of like the parts department of a Chevrolet dealership.” Marketing Director Eric Taylor said the company will share the knowledge gained from the store with AAON sales representatives nationwide, “so they can provide the same level of storefront parts support to their local customers.” AAON currently employs 1,140 workers in Tulsa and 310 in Longview. COMPANY PROFILES 5. ACCESS MIDSTREAM PARTNERS LP I Address: 525 Central Park Drive, Oklahoma City, OK 73105 I Phone: 935-7800 I Website: www.access midstream.com I Ticker: ACMP I Exchange: NYSE I At the top: J. Mike Stice I Employees: 1,255 I Industry: Natural gas gathering and processing I Summary: Access Midstream Partners LP is a midstream gathering company that owns, operates, develops and acquires natural gas, natural gas liquids (NGLs) and oil gathering assets in the U.S. 6. ROSE ROCK MIDSTREAM LP I Address: 2 Warren Place, 6120 S Yale Ave. Suite 700, Tulsa, OK 74136 I Phone: (918) 524-7700 I Website: www.rrmidstream.com I Ticker: RRMS I Exchange: NYSE I At the top: Norman J. Szydlowski I Employees: 80 I Industry: Crude oil gathering, transport and storage I Summary: Rose Rock Midstream LP engages in the business of crude oil gathering, transportation, storage and marketing. 7. 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: NAS I At the top: Joseph W. Craft III I Employees: 4,345 I Industry: Bituminous coal and lignite surface mining I Summary: Alliance Holdings GP LP owns the assets of Alliance Resource Partners LP. 8. SEMGROUP CORP. I Address: 6120 S Yale Ave., Suite 700, Tulsa, OK 74136 I Phone: (918) 5248100 I Website: www.semgroupcorp.com I Ticker: SEMG I Exchange: NYSE I At the top: Norm J. Szydlowski I Employees: 690 I Industry: Petroleum gathering and processing I Summary: SemGroup Corp. moves oil and gas from the wellhead to the marketplace. 9. ORCHIDS PAPER PRODUCTS CO. I Address: 4826 Hunt St., Pryor, OK 74361 I Phone: (918) 8250616 I Website: www.orchidspaper.com I Ticker: TIS I Exchange: NYSE I At the top: Robert A. Snyder I Employees: 290 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. 10. MATRIX SERVICE CO. I Address: 5100 E Skelly Drive, Suite 700, Tulsa, OK 74135 I Phone: (918) 8388822 I Website: www.matrixservice.com I Ticker: MTRX I Exchange: NAS I At the top: John R. Hewitt I Employees: 4,800 I Industry: Oil and gas field services I Summary: Matrix Service Co. provides construction, repair, and maintenance services mainly to the petroleum and power industries. 11. 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: 11,514 I Industry: Quick service restaurants I Summary: Sonic Corp. operates and franchises a chain of quick-service drive-in restaurants in the United States. Helmerich & Payne Inc. boosts its market share NO. 4 | LARGE FLEET OF RIGS HELPS COMPANY CONTINUE GROWTH Jay F. Marks jmarks@ opubco.com BUSINESS WRITER TULSA — It has been a strange year for contract driller Helmerich & Payne Inc. The company saw its rig count dip slightly last year, but CEO Hans Helmerich said its market share of active rigs rose from 12 percent to 15 percent. Helmerich has a simple explanation for that phenomenon. “We have the most modern land fleet in the world,” he said. The Tulsa-based company has built a 340-rig fleet that has made it the most active land driller in the United States. At the Governor’s Energy Conference last month in Tulsa, Helmerich said the company had about 50 more active rigs than its nearest competitor. He said H&P’s 10,000 employees are the reason the company has been able to establish its position in the industry. Earns customer trust H&P is a market leader because it has earned the trust of its customers for its ability to reduce well cycle times safely with minimal environmental impact. Even in a flat or down market, H&P continues to receive premium rates, Helmerich said, because its rigs are safe and dependable. “The customer is willing to pay for that premium reliability,” he said. H&P fared well in the metrics tracked in the Oklahoma Inc. rankings, led by a 35.7 percent increase in earnings a share. The company also logged a 10.9 percent increase in revenues for the year. The 93-year-old drilling company’s future seems bright as well. Helmerich said H&P recently started receiving new build orders again after a six-month lull. “Hopefully we can keep the momentum moving into 2014,” he said. H&P has benefited from its focus on the domestic market, which is home to more than 300 of its rigs, but Helmerich said he expects to see some opportunities internationally in the next few years as more countries try to duplicate the success of drillers in the U.S. “I think there’s considerable headroom to grow our international business,” he said. 12. CONTINENTAL RESOURCES INC. I Address: 20 N Broadway, Oklahoma City, OK 73102 I Phone: 234-9000 I Website: www.clr.com I Ticker: CLR I Exchange: NYSE I At the top: Harold Hamm I Employees: 609 I Industry: Crude petroleum and natural gas I Summary: Continental Resources Inc. engages in the exploration, exploitation and production of oil and natural gas properties primarily in the U.S. Helmerich & Payne, with its modern land rig fleet, has seen a 35.7 percent increase in earnings a share. Helmerich & Payne Inc. has the most modern land fleet of rigs in the United States. PHOTOS PROVIDED COMPANY PROFILES 13. 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: 4,345 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. 14. MAGELLAN MIDSTREAM PARTNERS LP I Address: One Williams Center, 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: 1,339 I Industry: Crude petroleum pipelines. I Summary: Magellan Midstream Partners is an energy infrastructure enterprise with ammonia and petroleum products storage, transportation and distribution assets. 15. GULFPORT ENERGY CORP. I Address: 14313 N May Ave., Oklahoma City, OK 73134 I Phone: 848-8807 I Website: www.gulfportenergy.com I Ticker: GPOR I Exchange: NAS I At the top: James D. Palm I Employees: 128 I Industry: Crude petroleum and natural gas. I Summary: Gulfport Energy Corp. is an oil and natural gas exploration and production company. 16. 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: Mark W. Funke I Employees: 422 I Industry: Financial banks I Summary: Southwest Bancorp Inc., a financial holding company, provides commercial and consumer banking services in Oklahoma, Kansas and Texas. 17. WILLIAMS COS INC. 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: 4,639 I Industry: Natural gas transmission I Summary: Williams Cos. Inc. is primarily engaged in gas marketing and the gathering, storing, and processing of natural gas and natural gas liquids (NGLs). 18. BANCFIRST CORP. I Address: 101 N Broadway, Suite 200, Oklahoma City, OK 73102 I Phone: 270-1086 I Website: www.banc first.com I Ticker: BANF I Exchange: NAS I At the top: David E. Rainbolt I Employees: 1,635 I Industry: National commercial banks. I Summary: BancFirst Corp. is the holding company for BancFirst, a super-community bank that emphasizes decentralized management and centralized support. Access Midstream Partners grows through acquisitions NO. 5 | COMPANY’S FLAT FEES REMOVE RISK FROM SWINGS IN COMMODITY PRICES Operations in all the right places, and growth through acquisitions and new projects pushed Access Midstream Partners LP to almost double its asset base last year. Access Midstream came in at No. 5 on this year’s Oklahoma Inc. ranking of the state’s best-performing public companies, as tallied by S&P Capital IQ. That’s up from No. 17 in 2012. “We’re in every major unconventional basin except the Bakken,” said CEO Mike Stice. “This is a significant footprint across the midstream sector. Our business model, which is what’s delivering on those financial results, is to have no commodity price risk whatsoever. It’s all fixedfee, midstream services.” The company has more than 1,350 employees across the country, including more than 600 people in Oklahoma City at two Central Park office blocks at Interstate 44 and North Lincoln Boulevard. Access Midstream remodeled the offices and now has a stateof-the-art pipeline control center in the basement of one of the buildings. Access Midstream, which gathers, treats and processes natural gas and natural gas liquids, began as the pipeline division of Chesapeake Energy Corp. and later became a publicly traded spinoff called Chesapeake Midstream Partners LP. The company changed its name to Access Midstream last year after being bought out by its initial backer, Houston-based private equity firm Global Infrastructure Partners LP. Williams Cos. Inc. made a large investment in December about the same time Access Midstream acquired the rest of Chesapeake’s midstream assets in in the Utica, Niobrara and Eagle Ford shale plays. Access Midstream spent much of 2013 integrating those assets, which also included expansions of its existing positions in the Mid-Continent, Haynesville and Marcellus areas. “We became a much bigger company, as well as a completely independent company,” Stice said. “That led to an enormous amount of challenges that don’t necessarily show up in the numbers. We called it our transition effort. We grew significantly in regard to organizational capability in order to do all those functions on our Paul Monies pmonies@ opubco.com BUSINESS WRITER own.” Chesapeake remains Access Midstream’s largest customer, although Stice is working to lower that share as the partnership grows. Chesapeake was 80 percent of Access Midstream’s business in December; that has since fallen to about 74 percent. Other Access Midstream customers include Total SA, Statoil ASA, Anadarko Petroleum Corp., Mitsui & Co. Inc. and Royal Dutch Shell PLC. Stice said Access Midstream delivers value to its unit holders by charging flat fees for its services, removing the risk from swings in commodity prices. By focusing on intrastate midstream gathering and processing services, the partnership also doesn’t have to deal with federal energy regulators on interstate tariffs and rates. “This has really been the home run for us with regard to our unit price uplift,” Stice said. “The market loves businesses that can predict what their cash flows are. We call it the best-in-class business model. It is so predictable that we can basically articulate to the Street how we’re going to deliver and then just do it.” Christopher Sighinolfi, an analyst at Jefferies who has a “buy” rating on Ac- Access Midstream Partners operates gathering pipelines and natural gas processing plants in most of the nation’s unconventional shale plays. PHOTO PROVIDED cess Midstream’s units, said he’s impressed by the partnership’s cash flow. “Though many MLPs (master-limited partnerships) tout ‘fee-based’ business models, few offer ACMP’s contracted feefor-service cash flow security and regional diversity,” Sighinolfi said in a recent research report. Access Midstream also benefits from the expertise of its general partners, Global Infrastructure Partners and Williams. Stice said the partnership benefited from its early association with Chesapeake as that company was capturing acreage across the country. Stice said Global Infrastructure Partners offers both financial backing and management consulting, which was helpful as the company integrated its acquisition of Chesapeake’s remaining midstream assets. Stice said he’s particularly proud of Access Midstream’s safety record, which he called the best among midstream companies. Safety regulators measure the number of recordable incidents for every 200,000 hours worked. So far this year, the partnership has a total recordable incident rate of 0.39, Stice said. “The industry has not always been this safe,” Stice said. “I think in general it’s getting safer across the board, but there’s no doubt we stand out in the safety area as well.” COMPANY PROFILES 19. APCO OIL & GAS INTERNATIONAL INC. I Address: One Williams Center, No. 35, Tulsa, OK 74172 I Phone: (918) 573-2164 I Website: www.apcooilandgas.com I Ticker: APAGF I Exchange: NAS I At the top: Ralph A. Hill I Employees: 28 I Industry: Crude petroleum and natural gas I Summary: Apco Oil and Gas International Inc. exploits oil and gas resources internationally. 20. 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: 3,377 I Industry: Electric services I Summary: OGE Energy is the holding company for the largest electric utility in Oklahoma. Its Enogex unit was spun off into a combined company with CenterPoint Energy’s pipeline business. 21. BOK FINANCIAL CORP. I Address: Bank of Oklahoma Tower, Tulsa, OK 74192 I Phone: (918) 588-6000 I Website: investor.bokf.com I Ticker: BOKF I Exchange: NAS I At the top: Stanley A. Lybarger I Employees: 4,704 I Industry: National commercial banks I Summary: BOK Financial Corp offers a range of financial services to consumers and regional businesses. 22. BLUEKNIGHT ENERGY PARTNERS LP I Address: 201 NW 10, Suite 200, Oklahoma City, OK, 73103 I Phone: 278-6400 I Website: www.bkep.com I Ticker: BKEP I Exchange: Pink I At the top: Mark Hurley I Employees: 535 I Industry: Crude petroleum pipelines I Summary: Blueknight Energy Partners provides gathering, transporting, terminalling and storage of crude oil in Oklahoma, Kansas and Texas. 23. WPX ENERGY INC. I Address: One Williams Center, Tulsa, OK 74172 I Phone: (918) 573-2000 I Website: www.wpx energy.com I Ticker: WPX I Exchange: NYSE I At the top: Ralph A. Hill I Employees: 1,200 I Industry: Oil and gas exploration services I Summary: WPX Energy Inc. is an oil and gas exploration, production and marketing company, which owns producing oil, natural gas and natural gas liquids (NGL) properties in the Rocky Mountains, North Dakota and Pennsylvania. 24. CHESAPEAKE ENERGY CORP. I Address: 6100 N Western Ave., Oklahoma City, OK 73118 I Phone: 935-8000 I Website: www.chk.com I Ticker: CHK I Exchange: NYSE I At the top: Doug D. Lawler I Employees: 12,000 I Industry: Crude petroleum and natural gas I Summary: Chesapeake Energy Corp. builds oil and natural gas reserves through the acquisition and development of oil and gas assets across the U.S. 25. SYNTROLEUM CORP. I Address: 4322 S 49th West Ave., Tulsa, OK 74107 I Phone: (918) 5927900 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 I Summary: Syntroleum Corp. converts natural gas into synthetic fuel. 26. PANHANDLE OIL & GAS INC. I Address: 5400 N Grand Blvd., Suite 300, Grand Centre Suite, Oklahoma City, OK 73112 I Phone: 948-1560 I Website: www.panhandleoilandgas.com I At the top: Michael C. Coffman I Employees: 20 I Industry: Crude petroleum and natural gas I Summary: Panhandle Oil and Gas Inc. owns mineral interests, both working and royalty, in oiland gas-producing properties in 10 states. ENERGY TEAM http://newsok.com/ business/energy and in Friday’s Business Rose Rock built around oil, future growth is expected NO. 6 | 57.4 PERCENT INCREASE IN RETURNS SHOWN FOR SEMGROUP SUBSIDIARY Jay F. Marks jmarks@ opubco.com BUSINESS WRITER Rose Rock Midstream LP is expanding its presence in the pipeline world. The SemGroup Corp. subsidiary was created to operate its parent company’s crude oil business. Rose Rock logged a 57.4 percent increase in oneyear total returns on its stock and dividends. It also boosted its earnings a share by 20.1 percent. CEO Norm Szydlowski said Rose Rock will continue to grow as it takes on more of its parent company’s midstream assets, eventually leaving SemGroup as a holding company. Rose Rock went public in late 2011 as a master limited partnership. Szydlowski said the arrangement reduces taxes, creating an incentive to build infrastructure around natural resources. Rose Rock, which is based in Oklahoma City, operates more than 1,100 miles of gathering and transport pipeline in Colorado, Kansas and Oklahoma. Rose Rock Midstream LP owns storage tanks capable of holding 7 million barrels of oil at Cushing. PHOTO PROVIDED Its primary asset is its stake in the 526-mile White Cliffs pipeline, the only line moving crude oil directly from Colorado’s Denver-Julesburg Basin to the storage hub at Cushing. Rose Rock owns 17 percent of the line, while SemGroup owns 35 percent. Rose Rock also owns 7 million barrels of oil storage at Cushing. Company employees can monitor and control all of Rose Rock’s operations remotely from a secure room at its Oklahoma City headquarters. The room is staffed 24 hours a day so employees can keep an eye on pipeline pressure, flow rates and storage tank levels. Employees sit at a massive desk equipped with six computer monitors, along with a telephone so they can take calls about problems in the field. It seems like an impossible task, but “it becomes second nature,” supervisor Dane Gaither said. He said the people working in Rose Rock’s monitoring center are well trained and heavily regulated. Pete Schwiering, Rose Rock’s chief operating officer, said the company is focused on crude oil now because it is a preferable commodity at this point. Rose Rock eventually will add more natural gas assets, he said, thanks to SemGroup’s acquisition of $300 million in pipelines and other assets from Chesapeake Energy Corp. earlier this year. Energy industry continues to lead Oklahoma BY JAY F. MARKS Business Writer email@example.com This year’s list of Oklahoma’s top public companies leaves no doubt this is an energy state. Eight of the top 10, and 15 of the top 20, are energy companies, led by Tulsa-based midstream company NGL Energy Partners LP. Those figures didn’t surprise Oklahoma Independent Petroleum Association spokesman Cody Bannister “Oil and natural gas is our definitive industry,” he said. The bulk of the Oklahoma’s leading companies this year are midstream or service companies, a phenomenon Bannister attributes to the country’s renewed emphasis on oil and gas production. He said producers need new pipeline and other infrastructure to transport oil out of areas like North Dakota’s Bakken Shale. Russell Evans Oklahoma City University economist “All that comes through Oklahoma,” he said. Bannister also noted the continued growth of Cushing’s oil storage hub as the ongoing oil boom continues. “We’ve essentially hit the reset button on oil and natural gas in Oklahoma,” he said. “That’s a great thing.” Economist Russell Evans said energy companies are dealing with a new operating paradigm based on the realization that natural gas prices are unlikely to reach $10 per thousand cubic feet again. Companies are scrambling to maximize returns in a capital-intensive industry with little hope of securing such a return from higher commodity prices, so Evans said there are plenty of opportunities for midstream and service companies to make their mark. “Pressure is on to incorporate new technologies and innovate at every stage of the value chain,” said Evans, director of the Economic Research and Policy Institute at Oklahoma City University. “This will put greater emphasis on the ability of midstream, processing, logistics and transportation partners to innovate new cost savings in those segments of the value chain.” Evans said companies that do the best job of innovating will be in the best position to succeed in the future. Alliance Holdings mines continued support for coal NO. 7 | RETURNS JUMP 62 PERCENT FOR LOW-COST ENERGY COMPANY TULSA — Coal may be the country’s most unpopular fuel source, but that doesn’t appear to be hampering Alliance Holdings GP LP. Alliance is a regular among the state’s top companies. This year, the holding company that owns coal company Alliance Resource Partners LP’s assets ranked No. 7 on the Oklahoma Inc. list, buoyed by a 62.5 percent increase in total returns. CEO Joseph W. Craft III said coal remains an important resource in the U.S., despite regulations seemingly meant to curb its use. “Low-cost energy has been the driver of the U.S. economy,” he said Oct. 9 at the Governor’s Energy Jay F. Marks jmarks@ opubco.com BUSINESS WRITER Conference in Tulsa. “We’re seeing that today all across the globe.” He said cheap coal is one of the reasons Oklahoma has the fifth-lowest retail electricity price in the United States. Craft said coal production is expected to reach about 1 billion tons in the United States this year, with about 90 percent of that to be used domestically. Alliance is the sixthlargest coal producer in the nation, with a footprint primarily in the eastern U.S. He said domestic utility companies are Alliance’s primary customer, noting coal is responsible for about 40 percent of the country’s electric generation. The U.S. Energy Information Administration projects coal still will account for about 37 percent of the country’s electricity in 2035, so Craft remains optimistic about coal’s future. He said he expects coal to remain a significant part of the country’s energy mix, despite becoming a partisan issue in Washington, D.C. “Coal will continue to be competitive, primarily because it is a low-cost fuel,” Craft said. Alliance has about 4,000 employees, includ- ing 100 at its Tulsa headquarters. Craft said it adds about 400 or so a year as production increases. In July, Alliance reported record coal production for the first half of 2013, with revenues topping $1.1 billion. The company expects to produce nearly 40 million tons of coal this year, while revenues could climb as high as $2.25 billion, despite lower coal prices, Chief Financial Officer Brian Cantrell said in Alliance’s July 26 earnings call. Craft said Alliance is on track for its 13th consecutive year of record results. The holding company has announced distributions 12.5 percent higher than 2012, he said during the July earnings call. Sonic zooms to the top of service industry Jennifer Palmer jpalmer@ opubco.com Sonic Corp.’s Bricktown restaurant is shown. BUSINESS WRITER The roster of Oklahoma’s publicly traded service sector companies got slimmer this year, after Dollar Thrifty was bought by The Hertz Corp. and Graymark Healthcare dropped off the Nasdaq Stock Market. Sonic Corp., based in Oklahoma City, was this year’s leading service industry company and 11th ranked overall — up from 16th last year. The company, which has more than 3,500 drive-in restaurants nationwide, saw a 45 percent total return in stock and dividends. Revenue dipped 1.7 percent to $535 million, compared to 2012. Other service sector companies include ADDvantage Technologies Group PHOTO BY STEVE LACKMEYER, THE OKLAHOMAN Inc., a Broken Arrow-based company that resells cable TV equipment, which climbed three spots to No. 30, and Tulsa children’s bookmaker Educational Development Corp., which fell to No. 35 from No. 30. Auto rental company Dollar Thrifty, which last year ranked No. 14 overall, was bought by Hertz, the world’s second largest car rental chain for $2.3 billion. The deal received final approval by the Federal Trade Commission in July. Another company absent from this year’s Oklahoma Inc. rankings, Graymark Healthcare, could come back. Oklahoma City-based Graymark, which specialized in diagnosing and treating sleep apnea, had its stock removed from the Nasdaq last November after failing to meet minimum stock price requirements. It is now trading over the counter under the symbol GRMH. In July, the company completed a reverse merger with Foundation Surgery Affiliates. The new company will focus on the surgical facility business and is looking at re-listing its stock. COMPANY PROFILES 27. LAREDO PETROLEUM HOLDINGS INC. I Address: 15 W 6th St., Suite., 1800, Tulsa, OK 74119 I Phone: (918) 513-4570 I Website: www.laredopetro.com I Ticker: LPI I Exchange: NYSE I At the top: Randy A. Foutch I Employees: 266 I Industry: Crude petroleum and natural gas I Summary: Laredo Petroleum Holdings Inc. is engaged in the exploration, development and acquisition of oil and natural gas properties in the Permian and Mid-Continent regions of the U.S. 28. ONEOK INC. I Address: 100 W 5th 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: 4,859 I Industry: Gas transmission and distribution. I Summary: ONEOK Inc. focuses on marketing natural gas across the U.S. 29. UNIT CORP. I Address: 7130 S 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: 2,309 I Industry: Crude petroleum and natural gas I Summary: Unit Corp conducts onshore drilling of oil and natural gas wells for customers in the Gulf Coast, Midcontinent and Rocky Mountain regions of the U.S. 30. 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: 122 I Industry: Radio and TV communications equipment I Summary: ADDvantage Technologies Group Inc. sells new and remanufactured cable TV equipment and provides repair services to cable operators. SemGroup builds for boom times in oil, gas NO. 8 | COMPANY CAPITALIZES ON ENERGY INDUSTRY’S NEED FOR INFRASTRUCTURE Jay F. Marks jmarks@ opubco.com BUSINESS WRITER I Address: 123 Robert S. Kerr Ave., Oklahoma City, OK 73102 I Phone: 429-5500 I Website: www.sandridge energy.com I Ticker: SD I Exchange: NYSE I At the top: James Donald Bennett I Employees: 2,510 I Industry: Crude petroleum and natural gas extraction. I Summary: SandRidge Energy Inc. produces oil and natural gas, primarily in northern Oklahoma and in the Gulf of Mexico. I Address: 100 W Fifth St., Tulsa, OK 74103 I Phone: (918) 5887000 I Website: www.oneokpartners.com I Ticker: OKS I Exchange: NYSE I At the top: John W. Gibson I Employees: 4,859 I Industry: Natural gas transmission I Summary: ONEOK Partners LP is engaged in natural gas pipelines; gas gathering and processing; and natural gas liquids (NGLs). 33. WILLIAMS PARTNERS LP SemGroup is an energy transport company that owns a network of pipelines, terminals and storage tanks. PHOTO PROVIDED Szydlowski said SemGroup recently purchased a trucking company to help the company “follow the drill.” The company, which has 114 trucks, can serve producers until SemGroup can build gathering lines to the well site. “We’re really feeling good about that acquisition,” he said. Szydlowski said SemGroup’s strategy is to think long-term, looking for sustainable projects in areas with predictable growth opportunities. “Everything we do in our business takes a long time,” he said. “It’s really a long-term business.” Szydowlski said SemGroup was able to survive its 2008 bankruptcy because of the strength of its people. “It’s been a bumpy road, but people stuck with it,” he said. SemGroup has about 800 employees, including 200 in the United States. SemGroup also has offices in Canada, Mexico and the United Kingdom. Major retailers benefit Orchids Paper NO. 9 | BULK TISSUE PAPER MAKER PROFITS WITH POPULARITY OF PRIVATE LABELS PRYOR — Orchids still blooms among Oklahoma’s public companies. The tissue and paper towel maker in Pryor landed at No. 9 in this year’s Oklahoma Inc. — the ninth-best publicly traded stock in the state. Orchids Paper Products makes and sells bulk tissue paper — known as parent rolls — and converts parent rolls into bathroom tissue, paper towels and paper napkins for the consumer or “at home” market. Sales are nationwide, but mostly within 500 miles of Pryor, mainly through discount retailers. The company sells products under the brand names Colortex and Velvet, but mainly through store chains’ private labels — and private labels are gaining market share, according to analyst John Nobile of New York smallcap brokerage Taglich Brothers Inc. “Private label products continue to increase in popularity due to their improved quality and lower price compared to national brands,” Nobile said in a recent research note. Private-label toilet paper sales, for example, have boosted market share from 13.1 percent to 17.6 percent since 2007, he said. Further, Target and Walmart are focusing more on private-label products for their higher margins, Nobile said. For its part, Orchids is realigning sales and marketing away from bulk sales and toward valueadded products. Nobile said the company is on pace to increase converted product tonnage by 21 percent and decrease parent roll sales by 55 percent this year and that the trend should continue in 2014. Orchids aims to get out 31. SANDRIDGE ENERGY INC. 32. ONEOK PARTNERS LP TULSA — SemGroup Corp. is pros- pering thanks to a series of wise investments. CEO Norm Szydlowski said the company is capitalizing on the need for infrastructure that has accompanied the ongoing oil and natural gas boom in the United States. “It’s absolutely chaos because all the oil and gas is in the wrong place,” he said. “We love it.” Szydlowski praised exploration and production companies for developing technology to unlock new petroleum reserves. That in turn created opportunities for midstream companies like SemGroup. SemGroup is an energy transport company that owns a network of pipelines, terminals and storage tanks. SemGroup operates as a family of companies through its subsidiaries, including Oklahoma City-based Rose Rock Midstream LP. SemGroup also owns a stake in NGL Energy Partners LP. “The story is we have a lot more (projects) to come for a long, long time,” Szydlowski said. SemGroup ranked No. 8 among Oklahoma’s public companies, buoyed by a 254.5 percent increase in earnings per share. SemGroup also logged an impressive one-year return of nearly 69 percent on its stock and dividends. Szydlowski said SemGroup has invested well, pointing to its construction of the Glass Mountain oil pipeline in western Oklahoma and a natural gas processing plant in northwest Oklahoma. “The financials reflect the good performance and the good returns,” he said. COMPANY PROFILES Richard Mize richardmize @opubco. com REAL ESTATE EDITOR of bulk sales completely, Nobile noted, and to that end installed a new converting line in 2010 and invested in equipment and improved operations in 2011 to develop higherquality products. Last year, manufacturers of papermaking equipment in Italy honored Orchids Paper with an award, and in September, Dollar General awarded the company with its 2012 Pride Award for Private Label Vendor of the Year. “Orchids plans to expand into other retail channels such as grocery stores, mass merchandise and other discount retail sectors,” Nobile said. “Initial efforts to expand into these other channels previously had limited success due to capacity constraints and the inability to produce higher-grade products. However, these shortcomings have been partly overcome by the additional converting line and new product initiatives — higher-grade products.” Orchids position and increased earnings estimates led Nobile to reiterate the company’s “speculative buy” rating in August and to increase his 12month price target from $25.50 to $30. Orchids trades under the ticker symbol TIS on the New York Stock Exchange. However, Nobile noted, with just three customers accounting for 74 percent of converted product sales in 2012 — Dollar General, Family Dollar and Wal- I Address: One Williams Center, Tulsa, OK 74172 I Phone: (918) 5732000 I Website: www. williamslp.com I Ticker: WPZ I Exchange: NYSE I At the top: Alan S. Armstrong I Employees: 3,455 I Industry: Natural gas transmission I Summary: Williams Partners LP is engaged in the gathering and processing of natural gas, and the storage of NGLs, and the operation of three major interstate natural gas pipelines. 34. POSTROCK ENERGY CORP. I Address: 210 Park Ave. 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: 301 I Industry: Crude petroleum and natural gas 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. 35. EDUCATIONAL DEVELOPMENT CORP. I Address: 10302 E 55th Place, Tulsa, OK 74146 I Phone: (800) 4754522 I Website: www.edcpub.com I Ticker: EDUC I Exchange: NAS I At the top: Randall W. White I Employees: 69 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 Ltd. 36. LSB INDUSTRIES INC. Soft’N Fluffy is a brand of toilet tissue made by Orchids Paper Products. PHOTO PROVIDED mart, and on order, not by sales contract — “any substantial decrease or delay in sales to one or more of Orchids’ key customers would harm sales and financial results.” Further, competitors have moved into Orchids’ operating region, reducing competitive cost advantages and putting pressure on selling prices, Nobile said. Nonetheless, Orchids smelled sweet in the year ending June 30, the period analyzed by suburban Denver-based S&P Capital IQ for ranking in Oklahoma Inc., although the No. 9 placement was down from No. 3 last year. Profitable year Orchids saw its earnings per share rise 13.9 percent over the year. Revenues rose 2.8 percent and total return per share increased 55.9 percent over the same period. The $206.8-million company saw total revenues of $105.6 million and net income of $10.7 million during the period. The second quarter of 2013 was especially positive. Orchids reported record total net sales and record converted product net sales. Converted product shipments were 2,080,000 cases, surpassing the previous record of 1,864,000. Net income was $3.1 million, an increase of $906,000, or 41 percent, compared with $2.2 million of net income in the same period of 2012. “We continued to exhibit solid performance during the second quarter of 2013,” Robert Snyder, president and CEO, said in a statement. “Our achievement of record net sales and converted product net sales in the second quarter of this year follows on the heels of a strong first quarter in which we also equaled or exceeded our previous sales records.” Snyder added, “As evidenced by our record sales achievements in the quarter, our previously announced new business is coming on line within our expectations. We anticipate converted product shipments in the second half of 2013 of an annualized run rate between 8.6 million and 9.1 million cases. I Address: 16 S Pennsylvania Ave., Oklahoma City, OK 73107 I Phone: 235-4546 I Website: www.lsbokc.com I Ticker: LXU I Exchange: NYSE I At the top: Jack E. Golsen I Employees: 1,881 I Industry: Nitrogenous fertilizers I Summary: LSB Industries Inc. makes a wide variety of chemicals (including nitric acid) and climate-control 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. 37. DEVON ENERGY CORP. I Address: 333 W. Sheridan Ave., Oklahoma City, OK, 73102 I Phone: 235-3611 I Website: www.devon energy.com I Ticker: DVN I Exchange: NYSE I At the top: John Richels I Employees: 5,700 I Industry: Crude petroleum and natural gas I Summary: Devon Energy Corp. focuses on exploration and production assets in Oklahoma, Texas, Wyoming and western Canada. RICHARD MIZE Oklahoma Property Lines http://blog.newsok.com/ok-propertylines and in Saturday’s Business Matrix targets investment in energy infrastructure NO. 10 | COMPANY SEES ITS REVENUE RISE 21 PERCENT TO $892.6 MILLION Paul Monies Gary Story, who died in September, poses inside Frontier City in February 2011. pmonies@ opubco.com PHOTO BY JOHN CLANTON, THE OKLAHOMAN Gary Story, thanks for the thrill rides BUSINESS WRITER TULSA — Shifting sources of oil and natural gas supplies across North America and the continued demand for energy infrastructure and support services helped land Matrix Service Co. among the best-performing public companies in Oklahoma. Matrix ranked No. 10 on this year’s list, which was compiled by S&P Capital IQ. The company was No. 6 last year. Matrix operates across four divisions: storage solutions; oil, gas and chemical; electrical infrastructure; and industrial cleaning. The company has more than 500 customers. Its biggest customer, Enbridge Inc., accounted for about 10 percent of its total revenues. Revenue grew to $892.6 million in fiscal year 2013, which ended June 30. That’s up 21 percent from $739 million in 2012. Net income was $24 million, up from $17.2 million in 2012. “Many of our midstream and downstream clients are investing considerable amounts of capital to expand or upgrade processing, transportation and storage terminal as- Matrix Service Co. has an exclusive contract to build oil and natural gas storage terminals for TransCanada Corp. over the next five years. PHOTO PROVIDED sets, which is driving our growth,” said John Hewitt, Matrix’s president and CEO, in a September call with analysts. Matrix has more than 4,800 employees in North America. The company has a large fabrication yard and warehouses in Catoosa and built numerous storage tanks in Cushing. In the past year, Matrix bought Pelichem, an industrial cleaning company in Louisiana. It also booked major repairs on electric transmission infrastructure in the wake of Hurricane Sandy, which hit the Eastern United States in October 2012. Jake Dollarhide, CEO of Longbow Asset Management Co. in Tulsa, said Matrix has put together an impressive string of quarterly results in the past few years. Its customers are building additional infrastructure and again making capital investments. “This energy boom is in its infancy,” Dollarhide said. “Some of the industries that were hardest hit by the recession put their investments on hold, and that’s beginning to pick up again in many markets.” Hewitt said as Matrix continues to grow, so does its emphasis on safety. “We believe a safety culture built on corporate commitment and individual accountability is making a difference on our business and further differentiates us from our competition,” Hewitt said in the September conference call. Matrix had an order backlog of almost $627 million at the end of June. The company is poised for future growth, too. It signed an exclusive contract with Canadian pipeline giant TransCanada Corp. in September. Matrix will build oil and natural gas storage terminals for TransCanada over the next five years. “Based on the favorable conditions of our end markets, our near record backlog, strong client relationships and robust bidding activity, we’re expecting continued controlled growth in fiscal 2014,” Hewitt said. Oklahoma banking companies continue to see strong returns Oklahoma’s banking sector has shown strong performance over the past year with all three of the state’s publicly traded banking companies posting double-digit total returns. Brianna Bailey bbailey@ opubco.com BUSINESS WRITER Southwest Bancorp The state’s top-performing company for the year in the banking sector, Southwest Bancorp, the parent company of Stillwater National Bank, is in the process of rebuilding after leadership changes. It also sold off a troubled portfolio of real estate and nonperforming loans in 2011. Southwest investors saw total returns of 40.3 percent over the past year including dividends, while earnings per share rose more than 118 percent over the past year. Mark Funke, who took over as president and CEO of Southwest in October 2012, said in a recent conference call that the company is still in the process of rebuilding and restructuring. In October, the company announced that it would consolidate its Stillwater National Bank and Trust Co. and Bank of Kansas brands under the same charter and operate both under the name Bank SNB beginning Nov. 16. The change will affect all of the banking companies branches in Oklahoma, Kansas and Texas. “Everything that we are doing will help develop and drive a culture that produces consistent and stable earnings,” Funke said. Southwest Bancorp CFO Joe Shockley, who took charge of the compa- ny’s balance sheet in December, said during a conference call that the company’s financials were continuing to show improvement in 2013. “I feel good about the progress we are making and I like our momentum,” Shockley said. BancFirst Investors in Oklahoma City-based BancFirst Corp. saw total returns of more than 14 percent over the past year earnings per share rose 4 percent over 2012. “In a public company there are some things you can control, but in the short run, the market is not one of them,” BancFirst CEO David Rainbolt said. “In 2012, BancFirst was able to increase earnings per share by over 14 percent, grow loans, and improve asset quality. We know that when we achieve similar results over the long-term, our shareholders do well.” BOK Financial Tulsa-based BOK Financial Corp, the parent company of Bank of Oklahoma, increased earnings per share by 1.2 percent in 2013. Total returns grew by 14.9 percent. BOK saw strong earnings growth over the past year, despite continuing challenging economic conditions, said Steve Bradshaw, BOK president and CEO elect. “BOK Financial produced record earnings in 2012 with our highest earning quarter in company history in the second quarter,” Bradshaw said. “Earnings have continued to be strong in the first two quarters of 2013. Our mix of fee-based business and traditional banking services has created very stable earnings for the company during the recent recession.” One of the best beats I had as a reporter included covering the theme park business. It was intriguing to follow how a Clytie little company that Bunyan began as Tierco cbunyan@ Corp. evolved into opubco.com Premier Parks Inc., which later became publicly traded, DIR. BUSINESS/LIFESTYLES which gobbled up the giant Six Flags Entertainment Corp. Industry analysts saw the latter as a gutsy, surprising and exciting move. It made work fun. Our coverage of Tierco increased after Gary Story was brought in to rehab Frontier City, then a deteriorating 40-acre park near Interstate 35 and Hefner Road. Frontier City — and Premier Parks — thrived and grew financially during the years that Story led operations. By the late 1990s, Premier Parks was in full acquisition mode, posting record earnings and gains in revenue as well as growth in attendance for properties that included parks in Belgium, The Netherlands and France. In 1998, the company made the top 10 list of the state’s best performing companies in rankings by Standard & Poors for The Oklahoman and acquired Six Flags. Story often recalled how he first came to Oklahoma City in 1984 after working in Australia and sat in the dismal park on a cold fall day wondering what he’d gotten into. He never intended to stay, but fell in love with the park. Years later he described Frontier City as a first girlfriend — you just can’t forget her. He never regretted coming here, and it’s probably fair to say Frontier City may not have survived past the 1980s without Story’s passion for the industry and a genuine love for the Oklahoma City property. It was because of Story that financier Kieran Burke became a partner in Premier Parks, pooling their talents to build a formidable company. The two shared a vision for what Frontier City — and Premier Parks — could become. Story wasn’t exactly a fan of the media, but we were fortunate that he granted The Oklahoman access to interviews that, among other things, allowed us to get a good idea of his vision for the park and his passion for the industry. He was a chief executive who when he spoke investors and customers — or guests, as they’re called in that business — could understand what he was saying. Story’s death in September after years battling Type 1 diabetes made me reflect on just how significant that 40-acre spot along I-35 became in the 1990s and the years following. As president and chief operating officer for Six Flags, he remained in Oklahoma City — so the city shared headquarters billing with New York. It meant investment bankers, ride manufacturers, amusement vendors and national media were constantly traveling to Oklahoma City for meetings and presentations. Maintaining a headquarters in Oklahoma City exposed the community to business leaders from around the world. Story left Six Flags in 2005 and the company closed its Oklahoma City office the following year. There’ll be no more live quotes or chasing down his response to something that happened in the industry, but Story’s imprint remains in Oklahoma City with the team that now manages Frontier City and White Water Bay. We bid him a fond farewell. At 58, he truly was one of those people gone too soon. State’s OTC companies aspire to grow, jump to major exchange BY BRIANNA BAILEY Business Writer firstname.lastname@example.org Oklahoma’s top-performing over-thecounter company for the year, PSM Holdings Inc., which operates the mortgage brokerage firm PrimeSource Mortgage, relocated to Oklahoma City from New Mexico last year with the goal of expanding and eventually moving to a major exchange. “The future growth of the company will dictate when we make that move. Based on everything I can see, it will be in 18 months to two years,” said Jeffrey Smith, PSM chairman and president and CEO of PrimeSource. PSM decided to relocate from Roswell, N.M., in 2012 because a lack of air travel, financial resources and talent in the mostly rural surrounding area. Oklahoma City’s business-friendly atmosphere and low cost of living also helped the company choose, Smith said. “We visited both Dallas and Oklahoma City and it wasn’t difficult to choose Oklahoma,” he said. PSM saw its revenue increase by more than 118 percent and earnings per share grew 77 percent in fiscal year 2013 over the previous year. While the company clears about $50 million in mortgages each month, it is poised to double in size over the next few years as it works to build a national lending platform, Smith said. PrimeSource operates more than 20 branches scattered mostly across the West and Midwest. The company recently partnered with Oklahoma State Bank to provide mortgage brokerage services for the bank. Joining with community banks is a new line of business for PrimeSource, but an area where Smith believes there is room to grow. With all of the new regulations from the Dodd-Frank Act that are being implemented through the federal Consumer Financial Protection Bureau, many small community banks have decided to stop doing mortgage lending, giving PrimeSource an opportunity to expand, Smith said. PrimeSource also is in the process of opening a retail branch at 900 36th Ave. NW in Norman. Oklahoma’s worst performing overthe-counter company for the year, Oklahoma City-based Graymark Healthcare, Inc., also hopes to eventually move back onto a major exchange next year after its reverse merger with Foundation Surgery Affiliates. Graymark had a rocky year — its stock was removed from Nasdaq in November 2012 for failing to meet minimum stock price requirements. The company saw its revenues decrease by 22 percent from 2012 to 2013. Earnings per share dropped more than 78 percent. The reverse merger allows Foundation, which operates and develops surgical centers and hospitals, to become a public company without the expense of an IPO. “We’re very excited about this merger because it brings the necessary revenue and earnings to Graymark to properly scale the company,” Graymark CEO Stanton Nelson said in a recent conference call. “We plan to focus on surgery and other ancillary opportunities such as imaging, oncology and sleep diagnostics — expanding our scope will allow us to have a fully integrated health care system.” As a public company, newly merged Graymark will be able to raise the capital necessary to acquire and develop more surgical centers and hospitals, said Tom Michaud, founder of Foundation and chairman for the new Graymark. “Being a public company, we now have new options to grow the company,” Michaud said during the conference call. Oklahoma Inc. companies grow, contract and even vanish with passing of years Oklahoma Inc. gives us an annual perspective on our state’s publicly traded companies. That has value in a world in which we track stock prices on a minute-by-minute basis. Perhaps one can gain an even broader view by looking back at the results over longer periods of time. So I decided to travel back in time to review Oklahoma Inc. from five, 10 and 15 years ago, and offer a few observations. 2008 The massive economic collapse was peaking even as we were compiling Oklahoma Inc. Share prices of many state stocks were sliding, along with the broader market, as Oklahoma Inc. was published. I Top dog: In its first year as a public company, Continental Resources offered signs of things to come. The firm ranked first in total returns and was published. The Dow Jones industrial average plunged below 8,000 as U.S. policymakers cut interest rates and craft a bailout package. Don Mecoy dmecoy@ opubco.com BUSINESS EDITOR 2003 earnings growth. CEO Harold Hamm graced the cover of Oklahoma Inc. along with the truck he used to start his energy business. Hamm’s penchant for oil has served his shareholders well. I Gone, but not forgotten: GMX Resources Inc. The Oklahoma City energy company finished second in the 2008 rankings. This year, GMX shares fell off the stock exchange as the company sought bankruptcy protection. I Memories: Sarah Palin and Joe Biden staged their only debate between the two vice presidential candidates the same month Oklahoma Inc. Best 1-year Total Return Rank Company Name 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 Gulfport Energy Corp. Access Midstream Partners LP AAON Inc. SemGroup Corp. Compressco Partners LP Alliance Holdings GP LP Magellan Midstream Partners LP Rose Rock Midstream LP Orchids Paper Products Co. NGL Energy Partners LP Sonic Corp. Helmerich & Payne Inc. Southwest Bancorp Inc. Blueknight Energy Partners LP Matrix Service Co. OGE Energy Corp. Alliance Resource Partners LP Continental Resources Inc. Williams Cos. Inc. WPX Energy Inc. Unit Corp. BOK Financial Corp. BancFirst Corp. Chesapeake Energy Corp. ADDvantage Technologies Group Inc. Williams Partners LP Syntroleum Corp. ONEOK Inc. Laredo Petroleum Holdings Inc. LSB Industries Inc. PostRock Energy Corp. ONEOK Partners LP Panhandle Oil & Gas Inc. Devon Energy Corp. Educational Development Corp. SandRidge Energy Inc. Apco Oil and Gas International Inc. One Year Total Return in Percent Energy companies reasserted their dominance in the Oklahoma Inc. rankings, with half of the top 10 companies from that industry. However, the top 10 included a healthy mix of firms, including a gadgetmaker (Lowrance Electronics Inc.), bookseller (Educational Development Corp.) and phone company (Dobson Communications Corp.). I Top dog: Matrix Service Co., a Tulsa company that builds and maintains equipment and sites for other energy companies, vaulted to the head of the list after completing a merger that doubled the business’ size. Matrix was the only Oklahoma public company that doubled its Stock Price June 28, 2013 128.3 84.1 78.3 69.3 67.9 62.5 60.9 57.4 55.9 46.1 45.2 44.7 40.3 40.0 37.5 35.3 34.9 29.2 17.2 17.1 15.4 14.9 14.1 11.5 6.1 5.2 2.2 0.5 -1.2 -1.6 -1.9 -3.3 -4.5 -9.2 -13.8 -28.8 -36.1 47.09 47.70 22.05 53.86 19.04 63.75 54.50 36.62 26.25 30.19 14.55 62.45 13.20 8.77 15.58 34.10 70.63 86.06 32.47 18.94 42.58 64.05 46.55 20.38 2.28 51.60 6.90 41.31 20.56 30.41 1.53 49.52 28.50 51.88 3.13 4.76 11.53 Stock Price June 29, 2012 20.63 27.21 12.57 31.93 12.40 41.48 35.32 24.43 17.68 22.15 10.02 43.48 9.41 6.66 11.33 25.90 56.12 66.62 28.82 16.18 36.89 58.20 41.91 18.60 2.15 52.24 6.75 42.31 20.80 30.91 1.56 53.75 30.14 57.99 4.04 6.69 18.05 shareholders’ money during the year. I Gone, but not forgotten: Pre-Paid Legal Services Inc., an Ada-based company that sold legal services through a multilevel marketing model, managed to finish sixth in the rankings despite wild swings in the company’s stock throughout the year. Pre-Paid Legal was taken private after a private equity firm bought the business in 2011. I Memories: The Concorde passenger jet made its final flight days after 2003’s Oklahoma Inc. is published. Former energy giant Enron Inc. continued working through its bankruptcy, filed nearly two years earlier. The scandal-plagued Houston company would not exit bankruptcy until it had disposed of essentially all of its assets. 1998 Fifteen years is a long I Gone, but not forgotten: Commander Aircraft Co., Oklahoma Inc.’s No. 9 ranked company in 1998, went public in 1993, five years after buying a single-engine aircraft line from Gulfstream Aerospace. The company, from hangars at Wiley Post Airport, produced about 200 Commander 114B planes before the 9/11 attacks gutted the private aerospace industry. The company sought bankruptcy protection before shutting down and selling all its assets in 2005. I Memories: Around the same time that Oklahoma Inc. was published, Google Inc. was founded in Menlo Park, Calif., by Stanford University Ph.D. candidates Larry Page and Sergey Brin; Eric Robert Rudolph was charged with the 1996 Olympic bombing in Atlanta; and Matthew Shepard was fatally beaten in Laramie, Wyo. time in the life of most public companies. Eight of the top 10 companies in 1998’s Oklahoma Inc. rankings no longer exist, most having been absorbed by other firms. Typical of those vanishing brands is Xeta Corp., a Broken Arrow telecom company ranked No. 3 in 1998, which changed its name to Xeta Technologies before being bought out in 2011 in a $61 million deal. I Top dog: Earning the top spot was Eateries Inc., an Oklahoma City restaurant firm led by Vince Orza, a former television reporter and anchor who later became dean of the Oklahoma City University business school after selling his Eateries holdings. Eateries was bought out in 2007 by a Dallas-based company that closed some of its trademark Garfield’s Restaurant and Pub locations in local malls. 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 35 36 37 NGL Energy Partners LP SandRidge Energy Inc. Access Midstream Partners LP Apco Oil and Gas International Inc. Compressco Partners LP Continental Resources Inc. Matrix Service Co. Chesapeake Energy Corp. Laredo Petroleum Holdings Inc. Alliance Holdings GP LP Alliance Resource Partners LP Panhandle Oil & Gas Inc. Helmerich & Payne Inc. AAON Inc. Rose Rock Midstream LP Blueknight Energy Partners LP Orchids Paper Products Co. ONEOK Inc. BancFirst Corp. ONEOK Partners LP PostRock Energy Corp. Unit Corp. BOK Financial Corp. Sonic Corp. OGE Energy Corp. Gulfport Energy Corp. Educational Development Corp. Magellan Midstream Partners LP Williams Cos. Inc. Williams Partners LP LSB Industries Inc. SemGroup Corp. ADDvantage Technologies Group Inc. Devon Energy Corp. WPX Energy Inc. Southwest Bancorp Inc. Syntroleum Corp. 278.8 81.2 28.6 22.6 21.9 20.2 17.3 16.7 13.9 11.7 11.7 11.3 10.9 9.6 7.3 3.1 2.8 0.3 0.1 -0.1 -1.1 -1.5 -1.6 -1.7 -4.8 -6.3 -6.5 -8.6 -9.3 -9.4 -10.0 -11.7 -11.9 -14.7 -19.2 -19.9 -52.4 5,477.288 2,895.573 788.642 147.289 119.993 2,983.682 841.876 14,607.000 638.109 2,162.114 2,162.477 55.534 3,352.525 312.898 615.938 185.943 105.654 13,579.380 267.514 10,748.883 65.197 1,312.325 1,416.830 534.723 3,611.100 242.574 24.883 1,705.396 7,198.000 7,018.000 712.413 1,205.628 33.478 9,509.000 2,950.000 96.674 6.773 SOURCE: S&P CAPITAL IQ Best dividends Rank 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 Dividend Yield June ‘13 (Percent) Company Name Educational Development Corp. Compressco Partners LP Williams Partners LP Alliance Resource Partners LP NGL Energy Partners LP ONEOK Partners LP Blueknight Energy Partners LP Orchids Paper Products Co. Alliance Holdings GP LP Rose Rock Midstream LP Williams Cos. Inc. Access Midstream Partners LP Magellan Midstream Partners LP ONEOK Inc. BancFirst Corp. OGE Energy Corp. BOK Financial Corp. Chesapeake Energy Corp. Devon Energy Corp. SemGroup Corp. Panhandle Oil & Gas Inc. Helmerich & Payne Inc. AAON Inc. Stock Price June 2013 Dividend Rate 3.13 19.04 51.60 70.63 30.19 49.52 8.77 26.25 63.75 36.62 32.47 47.70 54.50 41.31 46.55 34.10 64.05 20.38 51.88 53.86 28.50 62.45 22.05 0.32 1.70 3.45 4.52 1.91 2.86 0.48 1.40 3.05 1.72 1.41 1.87 2.03 1.44 1.16 0.84 1.52 0.35 0.88 0.76 0.28 0.60 0.20 10.2 8.9 6.7 6.4 6.3 5.8 5.5 5.3 4.8 4.7 4.3 3.9 3.7 3.5 2.5 2.4 2.4 1.7 1.7 1.4 1.0 1.0 0.9 SOURCE: S&P CAPITAL IQ Manufacturing major Rank Company Name Score One Year Total Return (Stock and dividends) in percent 1 2 3 1.00 2.00 3.00 78.3 55.9 -1.6 AAON Inc. Orchids Paper Products Co. LSB Industries Inc. Rank Percent Change in Revenues ‘12 to ‘13 1 2 3 9.6 2.8 -10.0 Rank 1 2 3 Percent Change in Earnings Per Share ‘12 to ‘13 59.5 13.9 -66.0 Rank 1 2 3 SOURCE: S&P CAPITAL IQ Manufacturing OTC Rank Company Name Score One Year Total Return (Stock and dividends) in percent 1 2 1.00 2.00 462.5 -9.6 Greystone Logistics Inc. Webco Industries Inc. Rank Percent Change in Revenues ‘12 to ‘13 1 2 3.8 -13.9 Rank Percent Change in Earnings Per Share ‘12 to ‘13 Rank 1 2 60.0 -57.7 1 2 SOURCE: S&P CAPITAL IQ ‘12 Total Revenues (in millions) ‘13 Total Revenues (in millions) Percent Change in Revenues ‘12 to ‘13 1,446.063 1,597.661 613.189 120.164 98.449 2,482.926 717.813 12,512.000 560.159 1,935.440 1,935.806 49.900 3,023.106 285.521 573.949 180.427 102.791 13,544.256 267.342 10,757.672 65.920 1,331.931 1,440.021 543.974 3,793.000 258.813 26.603 1,865.453 7,940.000 7,750.000 791.664 1,365.489 37.993 11,143.000 3,650.000 120.675 14.237 SOURCE: S&P CAPITAL IQ 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 NA NA NA Company Name Orchids Paper Products Co. SemGroup Corp. Magellan Midstream Partners LP Access Midstream Partners LP NGL Energy Partners LP Gulfport Energy Corp. AAON Inc. OGE Energy Corp. Alliance Holdings GP LP Williams Cos. Inc. Sonic Corp. Southwest Bancorp Inc. Continental Resources Inc. ONEOK Partners LP BancFirst Corp. BOK Financial Corp. Blueknight Energy Partners LP Compressco Partners LP ONEOK Inc. Matrix Service Co. Williams Partners LP Alliance Resource Partners LP Panhandle Oil & Gas Inc. Helmerich & Payne Inc. ADDvantage Technologies Group Inc. Educational Development Corp. LSB Industries Inc. Chesapeake Energy Corp. Unit Corp. Devon Energy Corp. Syntroleum Corp. SandRidge Energy Inc. PostRock Energy Corp. Apco Oil and Gas International Inc. Laredo Petroleum Holdings Inc. Rose Rock Midstream LP WPX Energy Inc. Two Year Total Return in Percent 127.0 110.6 99.8 84.7 71.6 58.6 55.7 43.4 42.5 40.0 36.9 34.8 32.6 27.8 27.4 25.2 23.9 20.4 18.3 16.4 7.0 3.5 -1.5 -4.3 -12.3 -28.6 -29.1 -29.3 -30.1 -32.4 -53.1 -55.3 -73.8 -86.7 NA NA NA Stock Price June 28, 2013 26.25 53.86 54.50 47.70 30.19 47.09 22.05 34.10 63.75 32.47 14.55 13.20 86.06 49.52 46.55 64.05 8.77 19.04 41.31 15.58 51.60 70.63 28.50 62.45 2.28 3.13 30.41 20.38 42.58 51.88 6.90 4.76 1.53 11.53 20.56 36.62 18.94 Stock Price June 30, 2011 12.65 25.67 29.87 28.70 19.94 29.69 14.56 25.16 49.88 30.25 10.63 9.79 64.91 42.65 38.60 54.77 8.05 18.68 37.01 13.38 54.18 77.45 29.49 66.12 2.60 5.39 42.92 29.69 60.93 78.81 14.70 10.66 5.83 86.93 NA NA NA SOURCE: S&P CAPITAL IQ 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 35 36 37 Sonic Corp. Alliance Resource Partners LP Alliance Holdings GP LP Magellan Midstream Partners LP AAON Inc. Continental Resources Inc. Helmerich & Payne Inc. ONEOK Partners LP Williams Cos. Inc. ONEOK Inc. Orchids Paper Products Co. Apco Oil and Gas International Inc. Williams Partners LP OGE Energy Corp. Rose Rock Midstream LP BOK Financial Corp. BancFirst Corp. Panhandle Oil & Gas Inc. Compressco Partners LP Gulfport Energy Corp. Matrix Service Co. Syntroleum Corp. LSB Industries Inc. SemGroup Corp. NGL Energy Partners LP Laredo Petroleum Holdings Inc. Southwest Bancorp Inc. Access Midstream Partners LP ADDvantage Technologies Group Inc. Unit Corp. Educational Development Corp. WPX Energy Inc. Devon Energy Corp. Chesapeake Energy Corp. SandRidge Energy Inc. PostRock Energy Corp. Blueknight Energy Partners LP ‘13 Return on Average Equity (in percent) 71.4 49.6 48.2 30.7 23.1 22.6 18.4 18.0 15.9 13.9 13.8 13.2 13.1 12.5 12.0 11.5 10.1 9.7 9.4 9.3 8.4 7.6 7.3 7.0 6.7 4.9 4.9 4.9 4.6 4.4 3.8 -5.0 -8.2 -9.7 -42.9 NM NM ‘13 Adjusted Net Income (in millions) 39.005 360.814 213.369 470.932 32.844 728.504 730.332 801.646 607.000 290.201 10.721 39.758 1,158.000 338.800 32.198 335.109 52.131 8.424 16.979 104.772 18.427 3.624 25.327 65.339 54.957 41.665 12.119 158.091 1.750 89.252 0.520 -268.000 -1,739.000 -1,325.000 -1,013.625 -50.693 4.048 Average Common Equity (in millions) 54.660 726.870 442.466 1,533.199 142.255 3,217.419 3,964.807 4,452.273 3,827.500 2,087.445 77.883 300.382 8,842.500 2,713.150 268.702 2,921.786 517.261 86.853 179.895 1,131.000 219.392 47.608 345.727 932.199 820.760 848.881 247.591 3,253.140 38.088 2,039.964 13.673 5,361.000 21,145.500 13,669.000 2,361.849 -9.875 -146.539 ‘13 Common Equity (in millions) Largest revenues ‘12 Common Equity (in millions) 60.436 48.885 774.376 679.364 462.532 422.400 1,555.315 1,511.083 152.520 131.989 3,643.340 2,791.497 4,295.023 3,634.590 4,433.078 4,471.469 4,694.000 2,961.000 2,085.349 2,089.540 80.792 74.975 320.187 280.577 9,353.000 8,332.000 2,811.300 2,615.000 227.051 310.353 2,957.637 2,885.934 534.961 499.561 89.978 83.729 176.467 183.322 1,569.286 692.714 230.009 208.775 49.574 45.643 359.757 331.697 1,003.828 860.570 839.226 802.294 875.705 822.058 249.420 245.763 4,048.748 2,457.533 38.812 37.364 2,079.549 2,000.378 13.242 14.104 5,179.000 5,543.000 20,066.000 22,225.000 12,973.000 14,365.000 1,888.202 2,835.497 -21.199 1.449 -149.182 -143.895 Industry Sector Service Energy Energy Energy Manufacturing Energy Energy Energy Energy Energy Manufacturing Energy Energy Energy Energy Financial/Banks Financial/Banks Energy Energy Energy Energy Energy Manufacturing Energy Energy Energy Financial/Banks Energy Technology Energy Service Energy Energy Energy Energy Energy Energy Rank Company Name ‘13 Total Revenues (in millions) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 Chesapeake Energy Corp. ONEOK Inc. ONEOK Partners LP Devon Energy Corp. Williams Cos. Inc. Williams Partners LP NGL Energy Partners LP OGE Energy Corp. Helmerich & Payne Inc. Continental Resources Inc. WPX Energy Inc. SandRidge Energy Inc. Alliance Resource Partners LP Alliance Holdings GP LP Magellan Midstream Partners LP BOK Financial Corp. Unit Corp. SemGroup Corp. Matrix Service Co. Access Midstream Partners LP LSB Industries Inc. Laredo Petroleum Holdings Inc. Rose Rock Midstream LP Sonic Corp. AAON Inc. BancFirst Corp. Gulfport Energy Corp. Blueknight Energy Partners LP Apco Oil and Gas International Inc. Compressco Partners LP Orchids Paper Products Co. Southwest Bancorp Inc. PostRock Energy Corp. Panhandle Oil & Gas Inc. ADDvantage Technologies Group Inc. Educational Development Corp. Syntroleum Corp. 14,607.000 13,579.380 10,748.883 9,509.000 7,198.000 7,018.000 5,477.288 3,611.100 3,352.525 2,983.682 2,950.000 2,895.573 2,162.477 2,162.114 1,705.396 1,416.830 1,312.325 1,205.628 841.876 788.642 712.413 638.109 615.938 534.723 312.898 267.514 242.574 185.943 147.289 119.993 105.654 96.674 65.197 55.534 33.478 24.883 6.773 SOURCE: S&P CAPITAL IQ SOURCE: S&P CAPITAL 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 35 36 37 NGL Energy Partners LP SemGroup Corp. Syntroleum Corp. Southwest Bancorp Inc. AAON Inc. Williams Cos. Inc. Rose Rock Midstream LP Helmerich & Payne Inc. Compressco Partners LP WPX Energy Inc. Orchids Paper Products Co. Sonic Corp. ADDvantage Technologies Group Inc. BancFirst Corp. Magellan Midstream Partners LP Apco Oil and Gas International Inc. BOK Financial Corp. Alliance Holdings GP LP OGE Energy Corp. Alliance Resource Partners LP Gulfport Energy Corp. Access Midstream Partners LP Continental Resources Inc. Matrix Service Co. Panhandle Oil & Gas Inc. ONEOK Partners LP ONEOK Inc. Williams Partners LP Unit Corp. Blueknight Energy Partners LP Laredo Petroleum Holdings Inc. Educational Development Corp. LSB Industries Inc. Chesapeake Energy Corp. Devon Energy Corp. SandRidge Energy Inc. PostRock Energy Corp. 649.5 254.8 242.1 123.4 61.3 58.5 36.8 34.6 32.8 28.9 17.4 15.2 12.3 4.5 4.2 2.9 1.4 0.2 -2.1 -2.7 -6.4 -7.0 -9.1 -12.6 -14.3 -15.9 -19.2 -19.6 -35.4 -52.9 -64.4 -64.7 -65.7 -145.9 -171.7 -219.7 -819.8 ‘12 Net Income (in millions) ‘13 Net Income (in millions) Percent Change in Net Income ‘12 to ‘13 54.957 65.339 3.624 13.662 32.844 607.000 32.198 733.957 16.979 -268.000 10.734 39.005 1.750 52.131 470.932 39.758 337.843 213.369 338.800 364.159 104.772 203.234 728.504 18.427 8.424 801.646 290.201 1158.000 89.252 25.612 41.665 0.520 25.627 -1074.000 -1732.000 -958.099 -37.425 -10.002 18.418 -2.550 -58.458 20.361 383.000 23.542 545.350 12.783 -377.000 9.140 33.869 1.559 49.885 451.847 38.641 333.337 212.902 346.100 374.218 111.969 218.450 801.857 21.085 9.833 953.595 359.180 1441.000 138.158 54.328 117.022 1.471 74.630 2339.000 2415.000 800.287 5.199 ‘13 Return on Average Equity (in percent) 6.7 7.0 7.6 4.9 23.1 15.9 12.0 18.4 9.4 -5.0 13.8 71.4 4.6 10.1 30.7 13.2 11.5 48.2 12.5 49.6 9.3 4.9 22.6 8.4 9.7 18.0 13.9 13.1 4.4 NM 4.9 3.8 7.3 -9.7 -8.2 -42.9 NM Best price to earnings ratio Rank SOURCE: S&P CAPITAL IQ 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 Company Name ‘13 Price to Earnings Stock Price Ratio June 30, June 30, Earnings 2013 Per Share 2013 Laredo Petroleum Holdings Inc. Blueknight Energy Partners LP Access Midstream Partners LP Williams Cos. Inc. SemGroup Corp. Williams Partners LP Gulfport Energy Corp. NGL Energy Partners LP ONEOK Inc. Panhandle Oil & Gas Inc. LSB Industries Inc. Magellan Midstream Partners LP AAON Inc. Educational Development Corp. Unit Corp. Matrix Service Co. Rose Rock Midstream LP Continental Resources Inc. Southwest Bancorp Inc. Sonic Corp. ONEOK Partners LP OGE Energy Corp. Orchids Paper Products Co. Syntroleum Corp. Alliance Holdings GP LP Compressco Partners LP BancFirst Corp. ADDvantage Technologies Group Inc. BOK Financial Corp. Alliance Resource Partners LP Helmerich & Payne Inc. Apco Oil and Gas International Inc. PostRock Energy Corp. SandRidge Energy Inc. Chesapeake Energy Corp. Devon Energy Corp. WPX Energy Inc. 60.5 58.5 54.2 35.3 34.5 32.5 32.0 31.1 29.3 28.2 26.9 26.2 24.7 24.1 23.0 21.9 21.9 21.7 21.6 21.4 20.0 19.8 18.9 18.6 17.9 17.8 13.6 13.4 13.0 10.6 9.1 8.5 -0.5 -2.2 -9.8 -12.1 -14.1 20.56 8.77 47.70 32.47 53.86 51.60 47.09 30.19 41.31 28.50 30.41 54.50 22.05 3.13 42.58 15.58 36.62 86.06 13.20 14.55 49.52 34.10 26.25 6.90 63.75 19.04 46.55 2.28 64.05 70.63 62.45 11.53 1.53 4.76 20.38 51.88 18.94 Percent Change in Earnings Per Share ‘12 to ‘13 0.34 -63.0 0.15 -75.0 0.88 -40.5 0.92 48.4 1.56 254.5 1.59 -48.4 1.47 -30.0 0.97 336.6 1.41 -18.7 1.01 -13.7 1.13 -66.0 2.08 4.0 0.89 59.5 0.13 -64.9 1.85 -36.0 0.71 -11.3 1.67 20.1 3.96 -11.4 0.61 118.9 0.68 21.4 2.48 -32.8 1.72 -2.3 1.39 13.9 0.37 223.3 3.56 0.3 1.07 32.1 3.42 4.0 0.17 13.3 4.94 1.2 6.68 -10.3 6.88 35.7 1.36 3.8 -3.29 -4,012.5 -2.12 -219.8 -2.08 -161.4 -4.30 -172.0 -1.34 29.8 Industry Sector Energy Energy Energy Energy Energy Energy Energy Energy Energy Energy Manufacturing Energy Manufacturing Service Energy Energy Energy Energy Financial/Banks Service Energy Energy Manufacturing Energy Energy Energy Financial/Banks Technology Financial/Banks Energy Energy Energy Energy Energy Energy Energy Energy SOURCE: S&P CAPITAL IQ Energy major Rank Company Name 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 NGL Energy Partners LP Compressco Partners LP Alliance Holdings GP LP Access Midstream Partners LP Helmerich & Payne Inc. Rose Rock Midstream LP SemGroup Corp. Matrix Service Co. Continental Resources Inc. Magellan Midstream Partners LP Alliance Resource Partners LP Gulfport Energy Corp. Williams Cos. Inc. Apco Oil and Gas International Inc. OGE Energy Corp. Blueknight Energy Partners LP WPX Energy Inc. Syntroleum Corp. Chesapeake Energy Corp. Panhandle Oil & Gas Inc. ONEOK Inc. Laredo Petroleum Holdings Inc. Unit Corp. SandRidge Energy Inc. ONEOK Partners LP Williams Partners LP PostRock Energy Corp. Devon Energy Corp. Score 3.33 5.00 8.67 8.67 9.00 9.67 10.00 10.67 11.67 12.33 12.33 13.33 14.00 14.00 14.67 16.33 16.67 17.00 17.00 17.67 18.00 18.00 18.67 18.67 20.00 21.67 23.00 26.00 One Year Total Return (Stock and dividends) in percent 46.1 67.9 62.5 84.1 44.7 57.4 69.3 37.5 29.2 60.9 34.9 128.3 17.2 -36.1 35.3 40.0 17.1 2.2 11.5 -4.5 0.5 -1.2 15.4 -28.8 -3.3 5.2 -1.9 -9.2 Rank 8 4 5 2 9 7 3 11 14 6 13 1 15 28 12 10 16 20 18 25 21 22 17 27 24 19 23 26 Percent Change in Revenues ‘12 to ‘13 278.8 21.9 11.7 28.6 10.9 7.3 -11.7 17.3 20.2 -8.6 11.7 -6.3 -9.3 22.6 -4.8 3.1 -19.2 -52.4 16.7 11.3 0.3 13.9 -1.5 81.2 -0.1 -9.4 -1.1 -14.7 Rank Percent Change in Earnings Per Share ‘12 to ‘13 1 336.6 5 32.1 10 0.3 3 -40.5 13 35.7 14 20.1 25 254.5 7 -11.3 6 -11.4 22 4.0 11 -10.3 21 -30.0 23 48.4 4 3.8 20 -2.3 15 -75.0 27 29.8 28 223.3 8 -161.4 12 -13.7 16 -18.7 9 -63.0 19 -36.0 2 -219.8 17 -32.8 24 -48.4 18 -4,012.5 26 -172.0 Rank. 1 6 11 21 5 8 2 14 15 9 13 18 4 10 12 24 7 3 25 16 17 23 20 27 19 22 28 26 SOURCE: S&P CAPITAL IQ Financial major Rank Company Name Score One Year Total Return (Stock and dividends) in percent 1 2 3 1.67 2.00 2.33 40.3 14.1 14.9 Southwest Bancorp Inc. BancFirst Corp. BOK Financial Corp. Rank Percent Change in Revenues ‘12 to ‘13 1 3 2 -19.9 0.1 -1.6 Rank Percent Change in Earnings Per Share ‘12 to ‘13 Rank 3 1 2 118.9 4.0 1.2 1 2 3 SOURCE: S&P CAPITAL IQ Best earnings per share growth Rank Company Name Percent Change in Earnings Per Share ‘12 to ‘13 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 NGL Energy Partners LP SemGroup Corp. Syntroleum Corp. Southwest Bancorp Inc. AAON Inc. Williams Cos. Inc. Helmerich & Payne Inc. Compressco Partners LP WPX Energy Inc. Sonic Corp. Rose Rock Midstream LP Orchids Paper Products Co. ADDvantage Technologies Group Inc. Magellan Midstream Partners LP BancFirst Corp. Apco Oil and Gas International Inc. BOK Financial Corp. Alliance Holdings GP LP OGE Energy Corp. Alliance Resource Partners LP Matrix Service Co. Continental Resources Inc. Panhandle Oil & Gas Inc. ONEOK Inc. Gulfport Energy Corp. ONEOK Partners LP Unit Corp. Access Midstream Partners LP Williams Partners LP Laredo Petroleum Holdings Inc. Educational Development Corp. LSB Industries Inc. Blueknight Energy Partners LP Chesapeake Energy Corp. Devon Energy Corp. SandRidge Energy Inc. PostRock Energy Corp. 336.6 254.5 223.3 118.9 59.5 48.4 35.7 32.1 29.8 21.4 20.1 13.9 13.3 4.0 4.0 3.8 1.2 0.3 -2.3 -10.3 -11.3 -11.4 -13.7 -18.7 -30.0 -32.8 -36.0 -40.5 -48.4 -63.0 -64.9 -66.0 -75.0 -161.4 -172.0 -219.8 -4,012.5 ‘13 Earnings Per Share ‘12 Earnings Per Share 0.97 1.56 0.37 0.61 0.89 0.92 6.88 1.07 -1.34 0.68 1.67 1.39 0.17 2.08 3.42 1.36 4.94 3.56 1.72 6.68 0.71 3.96 1.01 1.41 1.47 2.48 1.85 0.88 1.59 0.34 0.13 1.13 0.15 -2.08 -4.30 -2.12 -3.29 -0.41 0.44 -0.30 -3.23 0.56 0.62 5.07 0.81 -1.91 0.56 1.39 1.22 0.15 2.00 3.29 1.31 4.88 3.55 1.76 7.45 0.80 4.47 1.17 1.74 2.10 3.69 2.89 1.48 3.08 0.92 0.37 3.32 0.60 3.39 5.97 1.77 -0.08 SOURCE: S&P CAPITAL IQ