Prairie Business January 2015

Breath e easy.

Nor th Dakota is meeting higher energy demands and exceeding tougher environmental standards.

While the nation’s energy demands keep rising, EPA standards keep getting tougher Not to worry: North Dakota power companies are meeting the challenge of demand and actually exceeding the EPA’s environmental standards. Our air quality is among the best in the nation. Lear n how we’re working for both a healthy economy and a healthy environment at SecureEnergyFuture.org

KRIS BEVILL

MATTHEW D. MOHR

Hack Fargo attendees work in teams to develop mobile apps during a four-hour mini-hackathon held Dec. 3 at Myriad Mobile headquarters in downtown Fargo.

PHOTO: KRIS BEVILL/PRAIRIE BUSINESS MAGAZINE

KRIS BEVILL Editor kbevill@prairiebizmag.com

New Year, new sections

Congratulations on making it to another New Year! As a child, I never quite embraced the significance of celebrating the end of one year and the beginning of another — the 1st of January felt and looked exactly the same as the 31st of December, so what was the big deal? While I still think there’s something to be said for that, as I have grown older I have come to appreciate the reasons people commemorate the annual changing of the calendars — an awful lot can happen over the course of 12 months and the New Year is often the only time we give ourselves to look back at what we’ve achieved and endured, and look forward with an optimistic eye toward learning from the past year’s experiences.

While I’m not a rabid resolution-maker, I do see the New Year as a great opportunity to make changes, and we’ve made a few here at the magazine that I’m happy to introduce to you this month. First, we’ve opened up our column section to include contributions on all topics related to the region’s business community. By inviting businesses, researchers and community leaders to share their insight with us, we hope to better inform our readers on the many areas of interest in the northern Plains — from leadership advice to research breakthroughs, financial wisdom and industry updates.

Second, we’re going to profile an influential business person each month in a section called Business Insider. We kick off this new section with contributing writer Rob Swenson’s profile of McGowen Capital Group founder Gene McGowan — a self-made man by all accounts who turned a love of music into a 20-year career in the military before ultimately diving into the financial industry. He’s highly regarded among the Sioux Falls business community for his financial expertise and business know-how and, as you will quickly see in reading Rob’s piece, for being a really nice guy. Read more in “From music man to financial expert.”

We’re also launching a new section this month called Construction Corner which will highlight a different major construction project under way in our region each month. Construction trades and project developers are well aware of the many projects taking place throughout the northern Plains, but we realize that it’s hard for many others to keep up on the tremendous pace of development occurring throughout the area. This section aims to offer a few details on some of the most unique and largest projects being built.

I encourage readers to contact me with suggested subjects for the Business Insiders and Construction Corner sections. Also, if you are interested in submitting a column for consideration, contact me for details. We love to hear from readers and are happy to consider your suggestions.

Finally, it is with a bit of sadness that we say good-bye to our executive editor, Rona Johnson, who managed to find a place colder than North Dakota to call home. She is moving on to serve as publisher for a suite of publications in Alaska, and we wish her the best of luck. We’ll visit in the summer.

Asset turnover balancing

BY MATTHEW D. MOHR

Financial advisers are often quick to produce evidence to support rebalancing assets to fit a client’s risk tolerance and desired asset mix after a new year begins. A business owner probably wants to evaluate the asset balance within an enterprise as well.

It is a good idea to review your balance sheet each year and compare your asset levels to similarly sized businesses in your industry. How much cash, accounts receivable, inventory, equipment and other assets do you have as a percentage of sales? What percentage of your total assets does each represent to others in your industry of similar size, and how do these asset levels compare to the big players and top producers?

By comparing your asset levels to others in your industry, you can identify where opportunities for better managing a business exist. Underutilized assets are very common as a business and industry matures.

As you evaluate your asset base and asset mix, pay attention to the difference between your book value of the asset and what the market value may be. Accumulated depreciation can drastically affect your comparison.

It is not unusual for an older established business to have a large portion of its assets depreciated down to low or nearly no value. As a result, the “production” of these assets can look very good compared with a relatively young business with newer assets and little depreciation.

A good friend of mine was able to calculate a business’s volume based on the number of vehicles employed. When he uncovered a business had more vehicles per dollar sale than average, he would aggressively work to grow the business, and he was very successful when growing the enterprises under his influence. He discovered he could be much more aggressive than what was considered “normal” by employing those underutilized assets better.

After receiving year-end financial statements, a worthwhile exercise is calculating your dollar asset (by category) per dollar sales and dollar profit. Comparing your ratios with industry averages will point you to opportunity. PB

Matthew D. Mohr CEO, Dacotah Paper Co. mmohr@dacotahpaper.com

Eric Newell

‘Traction’ is gaining

BY ERIC NEWELL

As any entrepreneur knows, running a business is not easy. I enjoy it every day — but it is definitely a challenge. I am personally driven by the challenge of running our business as well as a business can be run. To that end, I’m always looking for ways to run the business better.

About ‘Traction’

On his first day with the company in May 2013, our vice president of business development said, “You really need to read this book called ‘Traction’ by Gino Wickman.” He said a number of companies in Minneapolis have been following the roadmap to success outlined in the book and they’ve been extremely successful.

The book talks about six different components of business: your vision (where you define your mission, values, niche and 10-, three- and one-year plans), your people (how to define accountabilities and put people in the right seat on the bus), your data (the importance of scorecards), your issues (how to bring up issues quickly, discuss them and move to resolution quickly), your process (how to take advantage of your unique processes) and Traction. “Traction” is the way you adopt and make all these components real within your business. Without that, you miss out on the execution necessary to make your business successful.

How it works at Stoneridge Software

We introduced Traction as a way to run our business in July 2013 and have been building on it ever since. Implementing this method of management has led to several practical differences for us: We have a common set of values and vision which has helped guide our decision making and build a cohesive team, we implemented a weekly scorecard which tells us in great detail what we’re doing and where we

need to apply attention as a leadership team, and we have weekly meetings that bring us together as a leadership team to tackle issues, make decisions and keep the pressure on key initiatives within the company.

More companies adopting the concept

Having never heard of Traction before last spring, I’ve been surprised at how many successful companies are using it and how much it’s helped devotees improve as business leaders. I recently joined a group of regional CEOs who get together each month to talk about how we can run our businesses together, and all of us are implementing Traction. The winner of the Barnesville Business Pitch competition last August is also planning to implement it as his new business takes off.

I encourage all business leaders to check out the concepts in “Traction: Get a Grip on Your Business” and consider how they can help you run your business. I was amazed by the clarity with which the book brings together these best practices into a system that has helped our business thrive. It’s been a key element of our success and is being used at many other successful companies in the area. PB

Eric Newell President Stoneridge Software eric@stoneridgesoftware.com

Revitalized fertilizer industry will benefit nation

BY SHAWN RANA

Implementation of new technologies within the energy sector has unleashed an energy revolution. Horizontal drilling and advanced hydraulic fracturing have unlocked significant stores of domestic shale oil and natural gas. Access to oil shale resources has significantly lowered North American natural gas prices, and in turn, prompted a manufacturing boom. As more shale gas is recovered, the cost benefit to manufacturers improves, thus providing an optimistic economic outlook.

Inexpensive gas resources have fueled billions in manufacturing investment. Within the fertilizer industry alone, new plant investment is likely to reach $12.7 billion by 2020. In southeast Iowa, OCI N.V. has invested $1.8 billion into the Iowa Fertilizer plant. It will be a natural gas-based fertilizer plant, and will represent the first of its size and class built in this country within the last 25 years. A revitalization of an entire industry has begun. In previous decades, our industry saw companies leaving the United States, in turn, devastating the local communities that relied on the fertilizer company’s business. Now, jobs and facilities are returning to the United States to revitalize local communities, many of which are located in rural areas of the Midwest.

The Iowa Fertilizer facility will transform southeast Iowa and Lee County with the addition of thousands of jobs and increased revenue. The products will provide local farmers with a stable and domestic supply of fertilizer, which will provide significant savings.

While the construction of Iowa Fertilizer is certainly good for Iowa, it represents a larger trend in the United States. Lower energy prices are spurring the return of many companies back to U.S. soil. In a globalized economy, outsourcing jobs has become commonplace. The advanced manufacturing realm

has been particularly hard hit, and countless communities have been devastated, primarily in rural parts of the Midwest. Affordable gas, along with the growing demand for fertilizer, has prompted companies like OCI N.V. to build and invest in the United States.

Iowa Fertilizer and other American fertilizer plants create much needed global competition. American farmers have long been forced to import the bulk of their fertilizer from foreign manufacturers. This makes them vulnerable to international price spikes and beholden to companies based overseas. As the No. 1 consumers of fertilizer, and the national leader in corn production, Iowa’s famers have long been forced to pay premium prices for this essential product. This also holds true for our Midwestern neighbors. Healthy competition and a stable supply of affordable fertilizer will save Midwestern famers millions of dollars each year.

At the national level, the country’s fertilizer manufacturing industry is responsible for more than 25,000 jobs and billions in annual investments. The indirect or induced impact of the industry can be linked to more than 200,000 jobs.

The American fertilizer industry is significant, with production plants and distribution facilities across the country. It is a sector with indisputable longevity, and plants providing both immediate and long-lasting revitalization to rural communities most in need. While the industry represents an important component to Midwestern economic stability, a national movement of fertilizer expansion and investment will position the United States to compete on a global scale with foreign companies who have long dominated the market. PB

Shawn Rana President Iowa Fertilizer shawn.rana@iowafertilizer.com

Shawn Rana

Minot International Airport Terminal

Minot—North Dakota’s Gateway to the Bakken™.

Minot investment opportunities are smart, grounded, and proven.

That’s what happens when a city has added more than 10,000 residents in the last several years. And is home to 53 energy and oil companies with almost 3,000 employees—in a city where more than half the business community is affected by the oil industry.

Because of energy’s impact on Minot, we have more than $350 million slated for improvements to roads, our airport, water and sewer mains, the landfill, buildings, and more. There’s no better region in the nation to put your investments. As a city, we're doing our part to keep pace, and continued state investment feeds an economic engine.

To learn more on the amazing potential of Minot, please email madc@minotusa.com or call us at 1-701-852-1075 to sign up for our comprehensive e-newsletter to stay informed on all of our latest news.

One of the nation’s most promising investments isn’t a company, but a city.

New

Streamlining thin film processing saves time, energy

BY CHRISTIE DELFANIAN

Energy storage devices and computer screens may seem worlds apart, but they’re not.

When associate professor Qi Hua Fan of South Dakota State University’s electrical engineering and computer science department set out to make a less expensive supercapacitor for storing renewable energy, he developed a new plasma technology that will streamline the production of display screens. For his work on thin film and plasma technologies, Fan was named the 2014 researcher of the year for the Jerome J. Lohr College of Engineering at SDSU. His research focuses on nanostructured materials used for photovoltaics, energy storage and displays.

Making electrodes for supercapacitors

Last spring Fan received a proof-of-concept grant from the U.S. Department of Energy through the North Central Regional Sun Grant Center to determine if biochar, a byproduct of the process that converts plant materials into biofuel, could be used in place of expensive activated carbon to make electrodes for supercapacitors.

The Sun Grant promotes collaboration among researchers from landgrant institutions, government agencies and the private sector to develop and commercialize renewable, bio-based energy technologies. The proofof-concept grants allow researchers to advance promising research to the next level of product development and commercialization.

Qi Hua Fan, associate professor at South Dakota State University, is the 2014 researcher of the year at SDSU’s Jerome J. Lohr College of Engineering.

PHOTO: SOUTH DAKOTA STATE UNIVERSITY

“The amount of charge stored in a capacitor depends on the surface area, and the biochar nanoparticles can create an extremely large surface area which can then hold more charge,” Fan says.

He deposits the biochar on a substrate using a patent-pending electrochemical process he developed and licensed to Applied Nanofilms LLC, in Brookings, S.D. Applied Nanofilms and Wintek, a Taiwan-based company that makes flat panel displays for notebooks and touch screens in Ann Arbor, Mich., provided matching funds.

Through this project, Fan developed a faster way of treating the biochar particles using a new technology called plasma activation. “Treating means you use plasma to change the material surface, such as creating pores,” he says.

The plasma treatment activates the biochar in 5 minutes and at room temperature, Fan explains. Conventional chemical activation takes several hours to complete and must be done at high temperatures — approximately 1,760 degrees Fahrenheit.

“This saves energy and is much more efficient,” Fan says. In this project, he has been collaborating with assistant professor Zhengrong Gu in the agricultural and biosystems engineering department, whose research focuses on energy storage materials and devices. They plan to use these promising results to apply for federal funding.

Applying plasma process

The technique that treats biochar electrodes for supercapacitors can also be used in making displays, explains Fan, who was a research scientist at Wintek more than 10 years ago. Since fall 2013, Fan has been collaborating with Wintek on ways of producing more efficient, better performing materials, such as silicon and carbon thin films, for the company’s displays.

“Plasma processing is a very critical technology in modern optoelectronic materials and devices,” Fan explains. The high-energy plasma can deposit highly transparent and conductive thin films, create high quality semiconductors, and pattern micro- or nano-scale devices, thus making the display images brighter and clearer.

Fan will work with Wintek to develop a prototype plasma system. The activation method has the potential to improve production efficiency, saving time and energy. PB

Christie Delfanian Research writer South Dakota State University christie.delfanian@sdstate.edu

Twin Cities brokerage firm buys Thune Insurance

St. Paul, Minn.-based North Risk Partners has merged with Thief River Falls, Minn.-based Thune Insurance Network.

Insurance, St. Cloud-based Apollo, Rochester-based C.O. Brown, and St. Paul-based Johnson McCann.

150-employee insurance brokerage that is now comprised of four independently operated Minnesota-based

Thune Insurance was founded 40 years ago and employs 25 insurance professionals at offices in Thief River Falls, Roseau and Baudette, Minn.

Eide Bailly boosts tech resources

Regional certified public accounting and business advisory firm Eide Bailly LLP has acquired Accounting Systems Inc., a Fort Collins, Colo.-based business, accounting and enterprise resource planning solution provider. The acquisition adds 10 employees to Eide Bailly and will help establish the firm as a thought leader in ERP and business technology solutions, according to Scott Kost, Eide Bailly’s director of technology consulting.

Researchers make degradable plastic breakthrough

A multidisciplinary team of researchers at North Dakota State University have discovered a potential method of creating biomass-based plastic which could be degraded when desired by exposing the product to ultraviolet light. In a proof of concept experiment, the group used fructose to ultimately create plastic, which was then degraded back to its originating molecules after three hours of exposure to ultraviolet light.

The group will continue to examine the process over the next two years, focusing research efforts on durability and strength of plastics created through this process and how the process might be applied to plastics used in cars, electronics and other items.

Study ranks region high for ‘successful aging’

A study recently released by the Milken Institute ranked several northern Plains’ cities among the top 10 small metropolitan areas for

Pat McCann, left, CEO of North Risk Partners and Mark Thune, founder and president of Thune Insurance Network . PHOTO: NORTH RISK PARTNERS

North Risk Partners is a

networks — Thune

older adults. Sioux Falls and Rapid City, S.D., ranked second and fifth on the list, respectively. Bismarck and Fargo, N.D., took the fourth and tenth place spots. Iowa City, Iowa, was named the best small metro for older adults in the country.

According to the Milken Institute, results were based on public data, as opposed to household surveys. The institute defines “successful aging” as living in a safe, affordable, engaging and connected community that offers quality health care and an active lifestyle with ready access to transportation, education, employment and recreation. While weather was indeed a consideration in the study, the institute noted that the strong economies, abundant health care options and low cost of care in many of the top-ranking cities overcame any downsides of inclement weather.

To view the complete results, visit http:// successfulaging.milkeninstitute.org/bcsa2014. html.

Altru, USDA partner to expand rural medical access

The USDA Rural Development agency has awarded Grand Forks, N.D.-based Altru Health System an approximately $196,000 grant through its Distance Learning and Telemedicine program to help expand health care to rural communities. Altru intends to use the grant to establish a video conferencing network so that medical professionals can diagnose and treat rural patients without requiring them to leave their communities.

NDPC creates online easement info center

The North Dakota Petroleum Center has launched an Easement Information Center on its website to provide informational resources to landowners and land agents. Resources available include the Land Agent Code of Conduct, pipeline company contact information, a pipeline incident report form, a summary of project scope form, answers to frequently asked easement and pipeline questions. To access the information, visit http://www.ndoil.org/ oil_can_2/easementinfocenter.

designing solutions for 60 years

Providing our clients with personal attention and professional expertise in all aspects of architectural and engineering projects.

Spherion gives back to American Red Cross

Spherion Staffing Services, a recruitment, staffing and workforce solutions provider with offices in Bismarck, Fargo and Minot, N.D., recently donated $5,500 to the Dakotas Region of the American Red Cross as part of the company’s national Community Giveback program.

Spherion owner Jill Berg said the donation helps the company further its commitment to its local community. “The more often we are involved with organizations like the American Red Cross, the better we understand the needs of North Dakota’s citizens,” she said in a news release. “Our priority is putting the people of North Dakota to work and contributing to the health of local community organizations and businesses.”

From left: Judy Green, CEO, American Red Cross, Dakotas Region; Jill Berg, Spherion franchise owner; Karen Witzel, Spherion regional sales manager; Lynn Speral, chief development officer, American Red Cross

PHOTO: SPHERION STAFFING SERVICES

Midcontinent announces gigabit network plan

Midcontinent Communications has announced plans to deliver gigabit Internet speed to approximately 600,000 homes and 55,000 businesses in the upper Midwest through a 7,600-mile, high-capacity fiber network. The multi-year Gigabit Initiative will begin this year. The first cities targeted for gigabit service include Fargo, Bismarck and Grand Forks, N.D., and Sioux Falls and Rapid City, S.D. For more information, visit midcogig.com.

University of Mary adds year-round option

Bismarck, N.D.-based University of Mary has it will begin offering a year-round campus option this year, which will allow students to complete a bachelor’s degree in less than three years and a master’s degree in four years. The year-round campus offers the same course load as traditional full-time degree programs, but provides the education in eight consecutive

semesters, which the university believes will help address the cost, time and debt challenges faced by students. The university indicated the shortened time span to obtain a degree could also help address North Dakota’s low unemployment and workforce demand.

Raven Industries buys Integra Plastics

Sioux Falls, S.D.-based Raven Industries Inc. recently announced that its engineered films division has acquired Madison, S.D.-based Integra Plastics Inc. for approximately $48 million in cash and stock. Integra specializes in the manufacture and conversion of high-quality plastic film and sheeting. It employs more than 100 people at locations Madison, Brandon, S.D., and Midland, Texas. The acquisition will expand Raven’s engineering film production capacity, broaden its product offerings and enhance current converting capabilities, the company said in a news release.

EERC Bakken program earns leadership award

The Energy & Environmental Research Center (EERC) at the University of North Dakota recently received the 2014 Chairman’s Stewardship Award in Environmental Partnership from the Interstate Oil and Gas Compact Commission for its Bakken Production Optimization program, which is focused on improving Bakken system oil recovery while simultaneously reducing its environmental footprint. Project partners include Continental Resources, ConocoPhillips, Hess Corp., Hitachi Data Systems, Marathon Oil, Nuverra Environmental Solutions, Oasis Petroleum, SM Energy, Whiting and XTO Energy. The North Dakota Industrial Commission’s oil and gas research program is also involved in the three-year project.

Van Vlaenderen joins Western State Bank

Ed Van Vlaenderen recently joined West Fargo-based Western State Bank as a senior network engineer. His duties include supporting and maintaining IT systems for the company, focusing on various types of networks. He has more than 20 years of IT experience, most recently as a network engineer at Sanford Health.

Metz joins Arctic Cat as CEO

Christopher Metz has been named president and CEO of Arctic Cat. He replaces Christopher Twomey, who remains the company’s board chairman. Twomey temporarily served as CEO following the stepping down of Claude Jordan after disappointing financial results early in 2014.

Prior to joining Arctic Cat, Metz served as managing director of private investment firm Sun Capital Partners Inc. He previously served as president of Black & Decker.

Alvine joins Fredrikson & Byron

Fredrikson & Byron recently announced the addition of Elizabeth Alvine as an associate attorney in the firm’s litigation and employment and labor groups. Alvine litigates primarily business and employment disputes, including contract disputes, business torts, tax controversy claims and employment discrimination claims, focusing primarily on commercial litigation. She is based at the firm’s Fargo office.

Thiessen named ND Economic Developer of Year

The Economic Development Association of North Dakota awarded Klaus Thiessen as the 2014 Governor’s Choice for Economic Developer of the Year during the group’s fall meeting held in November in Grand Forks. Thiessen is the president and CEO of the Grand Forks Region Economic Development Corp.

“Klaus focuses on the fundamentals of economic development and consistently and collaboratively drives projects and initiatives,” says Al Anderson, North Dakota commerce commissioner.

“Under his leadership, the region has maintained a focus on new wealth creation that results from primary sector growth.”

Thiessen has led the Grand Forks Region EDC since 2004. Prior to that, he served as president and CEO of the Winnipeg Economic Development Corp. for 10 years.

StarMark Cabinetry adds staff

Sioux Falls, S.D.-based StarMark Cabinetry has hired Dennis Henson to serve as financial analyst and Jenny Weber as training and development specialist.

Henson has more than 15 years of accounting experience and most recently served as accounting manager for Sioux Steel Co. in Sioux Falls.

Weber has eight years of training and employee development experience. She worked most recently as the new hire and training manager at Lawrence & Schiller Teleservices in Sioux Falls.

Regional Health names new CEO

Brent Phillips has been named president/ CEO of Rapid City, S.D.-based Regional Health. He succeeds Dr. Charles Hart, who announced his intent to retire last year after serving in the role for a decade.

Prior to joining Regional Health, Phillips served as president of the greater Milwaukee (Wis.) south region for Aurora Health Care, where he oversaw four hospitals. Previously roles included senior vice president of medical group operations for Aurora Health Care and senior leadership at Mayo Clinic in Rochester, Minn.

Pete Cappa, chairman of Regional Health’s search committee, said in a news release that Phillips was selected from more than 100 applicants based on his experience with larger health care systems and vision for building a culture of teamwork and respect among Regional Health employees.

Ackerman-Estvold hires senior civil engineer

John Schumacher has joined the AckermanEstvold Williston, N.D. office as a senior civil engineer in the municipal divison. He has nearly 40 years of civil engineering experience throughout the U.S. and the Middle East and holds a bachelor’s degree in civil engineering from the University of Texas.

Elizabeth Alvine

Ed Van Vlaenderen

Klaus Thiessen

John Schumacher

Christopher Metz

Dennis Henson

Jenny Weber

Brent Phillips

Fargo Moorhead West Fargo 2015 State of the Cities

Thursday, January 15 | 8 a.m.

Ramada Plaza & Suites and Conference Center Breakfast is included.

Register at www.fmwfchamber.com or call 218.233.1100.

Presented by

From music man to financial expert

McGowan Capital Group founder exemplifies the power of positivity

BY ROB SWENSON

Kurt Loudenback credits Gene McGowan for saving his company and helping turn it into a successful business. Loudenback is the president and CEO of Grand Prairie Foods, a food production and distribution company in Sioux Falls, S.D., that did more than $22 million in business in 2014.

“It’s not an understatement to say that we wouldn’t exist today if Gene McGowan hadn’t been there for us. We were literally on the verge of bankruptcy as a result of our startup struggles,” Loudenback says.

McGowan, a prominent investment executive in Sioux Falls, runs his own private equity firm — McGowan Capital Group — and led a group that invested early in Grand Prairie to help the company get its footing and grow. He is also a college dropout and an accomplished pianist who once made his living playing in bars.

“He started with virtually nothing and has worked his way up in a very positive manner,” says Dale Froehlich, a longtime friend and business associate. “It’s just remarkable. He’s one of the pillars of the Sioux Falls business community.”

McGowan is 78 but looks younger. He typically begins work days at 6:30 a.m. in a gym and keeps a busy schedule, even when he and his wife, Susan, take winter vacations at their condominium in Venice, Fla. Despite his age and success, he has no plans to stop working. “I’d rather think like a rookie than a has-been,” he says. “We’re just going to keep going, keep learning.”

A Lakefield, Minn., native, McGowan attended St. Thomas University in St. Paul for a year before joining the U.S. Navy. He played music and directed military bands during his 20 years of service, including 18 months of training at the Navy School of Music. He retired from the military in 1975 and

Gene McGowan, founder of McGowan Capital Group and accomplished pianist, plays the piano at his firm’s downtown Sioux Falls, S.D., offices.

PHOTO: ROB SWENSON

moved to Sioux Falls, which was the largest city near his hometown area near Worthington, Minn.

During his early days in Sioux Falls, McGowan was a single father raising six children, aged 3 to 17. To support his family, he sold residential real estate sales during the day and played piano at night. His life changed dramatically for the better, he says, when he met Susan Henkin, who at the time was a prominent newswoman on local TV. A mutual friend introduced them and she says she found him to be a fascinating man with a twinkling smile who seemed happiest when he was playing music. She was not put off by the fact that he was struggling to raise a half-dozen children. He needed a little convincing to get married eight months after they met, she says. “I didn’t.” They married in 1978.

Susan took control of the household, encouraged him to pursue his dreams and helped him launch a financial career, McGowan says. Without her, he says, he’d probably be playing the piano in dive bars.

He’s played the piano since third grade. He still occasionally plays at public events and at private parties. But investing is his life, he says.

Educational Challenges

In his youth, McGowan suffered the symptoms of Attention Deficit Hyperactivity Disorder. Difficulty staying focused caused him problems in school. He was “invited to leave” two private schools before returning to his hometown to complete high school.

“I was very eager to go out and set the world on fire. I wasn’t sure why I had to go through this,” he says. “I didn’t fit in the harness very well.”

He gave college a try, but at the same time he worked in a brewery and played the piano at a bar. He was asked to leave a rooming house near campus for violating curfew.

He joined the Navy in December 1955 and got accepted in the Navy music program for the piano and the trumpet. The structured environment of military service proved to be a great fit. He got promoted 12 times and retired from military service as a lieutenant. He also got to play music and conduct bands around the world for the enjoyment of military personnel and foreign audiences.

He had an especially memorable day after being transferred back to Washington, D.C., to serve on the faculty of the School of Music. He and a friend were performing in train cars that were transporting dignitaries to and from Philadelphia for the annual Army-Navy football game. McGowan was playing an accordion and his friend was on the guitar.

President John F. Kennedy, a former Navy officer, was riding in one of the cars. McGowan and his friend were standing in the background when the president turned to them and said, “Let’s hear from the Navy.” The request for a song caught them off guard, but they responded with a Mexican cowboy song, and people started singing along.

McGowan hadn’t realized it, but the Mexican ambassador to the United States was among the dignitaries with the president. After the performance, as McGowan recalls, Kennedy turned to the ambassador and said: “Mr. Ambassador, when you return to your country, be sure to tell your people what we are singing up here.”

The president and his brother, Robert, who was the U.S. attorney general, signed McGowan’s train ticket — creating a keepsake that he still owns.

McGowan has a college degree now, too. He recently was awarded an honorary bachelor’s degree in entrepreneurship and music from South Dakota State University. SDSU President David Chicoine recommended the degree, and the heads of the economics and music departments at SDSU,

the Faculty Senate and South Dakota Board of Regents supported the recommendation.

“People were very impressed with his credentials and accomplishments,” SDSU Provost Laurie Nichols says.

Business Successes

McGowan credits his wife for getting him started in financial services. An executive with Merrill Lynch contacted Susan to see if she would be interested in becoming an investment adviser. She had no interest, but Gene did. He pursued the opening, got the job and began studying harder than he ever had in his life to learn everything he could about economics, business and investing.

He started with Merrill Lynch in 1981. He switched to U.S. Bancorp Piper Jaffray in 1985 and worked as assistant branch manager and branch manager in Sioux Falls before being promoted to corporate headquarters in Minneapolis, where he served first as a training director and then as COO of the company’s retail business unit.

After four years he left Minneapolis and the business of public securities. He returned to Sioux Falls and started working in private investments, initially with Bluestem, before forming his own company a decade ago. To date, McGowan Capital has invested about $25 million in 12 businesses. It also owns about $45 million in troubled commercial mortgages.

McGowan Capital employs seven people, including McGowan, at its downtown Sioux Falls office. The office hosts monthly meetings of the CEO Roundtable, a gathering of 10 local executives who discuss business issues. McGowan has chaired the group for a decade, but he is quick to deflect credit and downplay his influence. In presentations to groups, he sometimes follows his observations with remarks such as “but I’m just a piano player.”

Dan Newell, president of the McGowan Capital Group, says McGowan will use any experience, good or bad, as a teaching opportunity. “That, to me, is a great characteristic of a leader,” he says. “It’s not uncommon for him to walk through the office, when he’s leaving, and thank everyone for what they do. That’s a great trait, also. He loves to give credit to the team and goes out of his way to do it.”

McGowan is especially close to Grand Prairie Foods because he chairs the company’s board of directors. Loudenback started Grand Prairie 11 years ago, after acquiring the assets of a struggling meat-distribution company. He essentially closed the business and started over with a new name and new products. The company struggled the first five years, but it has been profitable the past six.

Grand Prairie hooked up early with McGowan to get financial help. Loans were converted to stock, giving McGowan’s company partial ownership and a seat on the board.

Other than Loudenback, there was not much reason to initially invest in Grand Prairie, McGowan says. The company had problems, but Loudenback wasn’t one of them. “Kurt’s a star,” McGowan says of Loudenback.

The investment in Grand Prairie reflects McGowan’s philosophy of investing in people rather than ideas. “Ideas are a dime a dozen,” he says. “It takes the right person to make them work.”

Loudenback says McGowan has contributed significantly to Grand Prairie’s success and done so in a fond way. “He’s probably our biggest fan and our greatest challenger,” Loudenback says. “I call him Uncle Gene. He’s a great adviser.” PB

Rob Swenson Contributing writer RobSwensonMediaServices@gmail.com

Shift in Play

Bakken production expected to shift in response to lower oil prices

BY KRIS BEVILL

Crude oil prices have been on a steady march downward since last June, a consequence of a worldwide surplus — largely due to growing production at North American shale plays — and compounded by OPEC’s (Organization of the Petroleum Exporting Countries) decision to maintain its production output despite that global oversupply, according to experts. By Dec. 9, West Texas Intermediate, which traded above $100 per barrel in June, was trading at about $63 per barrel, after an even lower dip earlier in the month. Regionally, Flint Hills Resources, which operates a refinery at Rosemount, Minn., posted a purchase price of just $45.50 per barrel for North Dakota light sweet crude

on Dec. 9, down more than $5 per barrel from the beginning of the month.

The downturn in pricing has inspired much speculation as to a potential slowdown of domestic oil production as well as what impacts that slowdown could have on North Dakota’s prolific Bakken region. Mike Warren, senior vice president at consulting firm Stratas Advisors, a Hart Energy company, says that while the decline in prices is certainly not positive news for shale plays in general, each play will be impacted differently depending on its stage of development.

Stratas divides shale plays into three development stages: delineation, optimization and harvest. Delineation stage represents a period of capital expenditures and explo-

Pumpjacks taken out of production temporarily stand idle at a Hess site while new wells are fracked near Williston, N.D., on Nov. 12, 2104. PHOTO: ANDREW CULLEN/REUTERS

ration, optimization is as the name suggests, a period during which producers apply different completion techniques to extract as much of the resource as possible. The final stage, harvest, is the stage at which producers begin cutting costs and reach mass production of the play.

“The Bakken obviously is in harvest mode,” Warren says. He anticipates lower oil prices to have a lessened impact on the Bakken compared to shale plays that are less developed, particularly for producers operating wells with the highest estimated ultimate recovery rates. “What we see is … the lower oil price will basically impact players or operators that have drilled out their higher value acreage and are moving into the lower-value acreage,” he says.

Warren expects fewer new wells will be drilled in 2015 than in previous years while producers instead focus on proven high-producing wells. Continental Resources, for example, which is the biggest producer in the Bakken, announced in its November third quarter earnings report that it will not add new rigs in 2015, thus reducing its 2015 capital expenditures by $600 million. Instead, the company said it will focus the majority of its 2015 Bakken capex in areas where it can improve production levels.

Location, Location

“The pullback in drilling will not be dramatic and quick, however you won’t have an expanding drilling activity in the Bakken [this] year,” Warren says. “On the margin, there will be less wells drilled or it might be flat. But overall, it really depends on where you are in the Bakken whether you continue drilling or you just pull back a little bit to see where prices go in the future.”

Ken DeCubellis, CEO of Minnetonka, Minn.-based Black Ridge Oil & Gas Inc., says well location will factor heavily into his company’s investment plans this year, noting the break-even price per barrel varies wildly from well to well. “There are some parts of McKenzie County where you could still get, I wouldn’t say strong returns, but you could still get a return at $40 a barrel,” he says. “But I wouldn’t be drilling in western or southern McKenzie, or northern Williams County or southern Divide County at $70 oil. You can’t get a return at today’s prices in some parts of the [Williston] Basin.”

Black Ridge is a publicly traded exploration and production company that is focused solely on Williston Basin activities. It’s a non-operator, meaning that rather than participating in the production aspect, it invests in drilling units. Black Ridge has been active in the area for the past four years and currently has a stake in more than 300 wells, according to DeCubellis. In late November, the company anticipated its fourth quarter 2014 average production would range between 950 and 1,100 barrels of oil equivalent per day, a nearly 200 percent increase over the same time frame a year prior.

DeCubellis says his company’s disciplined approach toward investments has served it well so far and will continue to do so during this period of lower oil prices, although he notes that his company’s already discerning selection process has tightened even further in recent months. “We have to pass a lot more often than we would have six months ago,” he says.

Additionally, Black Ridge has been actively hedging oil prices through 2017, which DeCubellis says provides another layer of protection against the recent drop in oil prices. The company has also worked to maintain strong relationships with its lenders to ensure the continued access to capital Black Ridge needs for future growth, he says.

Travis Kelley, regional vice president of Target Logistics Management, the largest provider of workforce housing in the Bakken, says demand for his company’s services has actually gone up over the past few months and he doesn’t anticipate a slowdown anytime soon. “Our occupancy levels are still up in the 90 percentile at all of our facilities, and that’s actually come on stronger in the last six months,” he says.

While the company holds the identities of its clients close, Kelley says demand for housing continues to come from the same clients Target Logistics served at the height of the boom. He also anticipates a shift in where housing is most needed, however.

“I think that’s more of what we’ll see,” he says. “Where we can push things around, we will. We’re seeing more activity south of the river — Watford City, Dunn County — potentially we may look at expanding our facility there.”

Other Impacts

Halliburton Co. and Baker Hughes Inc., the second and third largest U.S. oilfield services companies, made international headlines when Halliburton announced in late November plans to acquire Baker Hughes for about $35 billion. The merger is expected to close in the second half of this year, creating a behemoth-sized company to rival competitor Schlumberger. The deal, spurred by falling oil prices, is a large example of what many believe will be a continued trend of mergers and acquisitions. “Consolidation is the name of the game,” Warren says.

Also, while oil prices may be dropping, the natural gas market outlook is more positive, making it more attractive for companies to capture gas that would otherwise be flared — regardless of regulations. DeCubellis says natural gas, which has accounted for between 8 and 10 percent of Black Ridge’s revenues in the past, could increase to approximately 13 percent of its revenue if oil prices remain low. “It’s going to become more of the production mix,” he says.

And while no one can predict with certainty how long oil prices will remain low, or how low they will fall, Warren is confident they will remain manageable in the coming year before rising again in 2016. In the meantime, companies like Black Ridge intend to continue investing with confidence in Bakken oil. DeCubellis sums up his philosophy on the play as this: “There will be a slowdown in the Bakken, but the Bakken is not going away.” PB

Kris Bevill Editor, Prairie Business 701-306-8561, kbevill@prairiebizmag.com

Fargo hackathon illustrates area’s growing tech industry

AT&T-sponsored app development event likely to be first of many

BY KRIS BEVILL

Fueled by free pizza, ice cream and all the caffeine they desired, about 50 programmers, software developers, graphic designers, students and curious onlookers gathered at Myriad Mobile’s downtown Fargo headquarters Dec. 3 for the first of what organizers hope will be many Fargo hackathons.

Hackathons are often 24-hour or weekend sessions designed to bring varying technology talents together to create mobile applications for any number of purposes. Dubbed “Hack Fargo,” this four-hour event could be considered a mini-hackathon, designed to gauge the interest level of potential participants while still offering enough time for groups to develop their ideas into actionable projects. Groups were free to design applications of their choosing, but special emphasis was given to two theme industries — agriculture and health care.

At the end of the four-hour session, teams presented their projects to a panel of judges who chose winners in three categories — most polished, most creative and craziest idea (that just may change the world). The Most Polished award was given to an app called “Show Me the Money,” which was developed to allow users to see the average value of an acre of land in any county in North Dakota from 1989 to present day. The Most Creative award was given to an app named iOculist, which allows users to self-check their eye health. The winning team for the Craziest Idea award designed an app called Pill Connection, or

About 50 tech professionals and students gathered at Myriad Mobile’s downtown Fargo headquarters for Hack Fargo on Dec. 3. PHOTO: KRIS BEVILL/ PRAIRIE BUSINESS MAGAZINE

Pill C, which would assist the visually impaired in identifying medications by reading Near Field Communication tags attached to pill bottles.

AT&T was the lead sponsor of the event, a first for the company in the upper Midwest. Cheryl Riley, AT&T’s director of external affairs for North Dakota, says the company often sponsors hackathons around the country to promote the development of new products for its customers and other industries, and North Dakota’s growing technology industry made it a good fit for the company’s first event in the region.

“With North Dakota being such a technology hub, it just made a lot of sense for us to bring that sort of event to North Dakota, and particularly to Fargo with all of the technology businesses that are in that area,” she says.

According to Riley, AT&T is also increasing its presence in the state and has invested more than $80 million into its North Dakota assets over the last few years, most recently installing 130 4G LTE sites around the state. She expects the company will continue to add to its assets in the coming year, noting that the oil and gas industry and agriculture industry as well as technology companies increasingly rely on mobile broadband to run their operations.

“North Dakota is such a growing market for us — it’s an exciting place to do business. It’s a really pro-business type of

state so we are really looking forward to continuing that level of investment,” she says.

As for Hack Fargo, Riley says the event exceeded the company’s expectations. She credits local organizers at Emerging Prairie for making the event a success. Annika Nynas, director of events and experience at Emerging Prairie, says AT&T’s support allowed them to create a community event that had never been done before in Fargo.

“We were really amazed by the level of community interest in the event — from participants to sponsors to spectators,” she says. “I encountered several people who came to the event to simply learn more about what a hackathon is, which shows us that people in Fargo are interested in being part of these high-level tech and development events.”

Riley says the turn-out was impressive enough to warrant AT&T’s participation in future Fargo hackathons. “It’s something I think we would really look at trying to do again in the future,” she says. “We were happy to provide the seed money for it initially and continue to help make it grow bigger and bigger every year.” PB

Kris Bevill Editor, Prairie Business 701-306-8561, kbevill@prairiebizmag.com

Bring Your Own Device: Worth the Risk?

Growing trend of employee-owned devices in workplace presents challenges, benefits

BY KRIS BEVILL

Walk into any office and ask for a show of hands from everyone who owns a smart phone or tablet. Odds are good the majority of people in the room do. Ask how many of those people use their personal devices for work purposes and it’s likely that nearly just as many people will say they do, although many of their employers lack any type of policy regulating that use of technology, potentially leaving them at risk for security breaches.

The phrase “Bring Your Own Device,” or BYOD, began creeping into the business vernacular several years ago in response to the growing trend of employees using personal electronic devices to do work and the need for businesses to manage that use. This employee-led trend is used to varying degrees depending on the business and employee — ranging from accessing email to creating company-owned data on personal devices — but the trend is undoubtedly growing, particularly as more millenials enter the workforce and demand easy access to any number of technological tools.

While BYOD certainly offers benefits to employers, such as extended virtual office hours and increased productivity, it also presents security risks that information technology (IT) experts say should be addressed before potential damage is done. However, many businesses have yet to create BYOD polices, or even acknowledge that the practice is occurring in their office.

Brett Anderson, a senior consultant in the interactive services department at Fargo-based Network Center Inc., says many companies in the area have taken a “wait-and-see” approach regarding BYOD. “Employees are bringing their devices, connecting to the network, but a majority of the businesses aren’t taking a lot of precautions around security or driving productivity,” he says.

Anderson says he encourages businesses to embrace the trend but to also develop a policy around the use of personal devices and inform employees what steps will be taken to protect the company’s security.

“That’s the place you start first,” he says. “What are the risks if your phone is attached to their network or they’ve got corporate assets on their device and it’s lost? What are the ramifications? Do you wipe the device, use a device locator, wipe the company email box?”

Anderson compares a BYOD policy to insurance in that businesses must weigh their acceptable risk level against the time and financial costs required to protect against those risks. Company management of BYOD can vary widely depending on each industry, from no policy or recognition of the risks and benefits of BYOD to strict policies restricting personal device use, which are most typically applied in tightly regulated industries such as banking and health care. According to Anderson, most companies fall in between the two extremes.

While security should be a major consideration for businesses, BYOD also offers benefits to both employer and employee. A white paper released by network security provider EdgeWave cites a number of reasons why employees are driving BYOD in the workplace, including a desire for newer, faster and higher performance than the hardware provided by their employer provides. The paper also points out the reality that many employees have multiple workspaces and enabling easy access to work files allows them to continue working from anywhere. Anderson also notes that while traditional IT adoption comes from the top down via company-issued computers, etc., millenials are changing that dynamic as they enter the workforce and educate employers on the technology tools they require to be most productive.

For business leaders not already attune to the risks and benefits of BYOD, Anderson recommends consulting with an IT professional to assist in assessing the company’s level of risk and potential policy implementation. PB

Kris Bevill Editor, Prairie Business 701-306-8561, kbevill@prairiebizmag.com

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Meeting the need for medical personnel

UND School of Medicine & Health Sciences expands to train more future health care workers

BY KRIS BEVILL

In late 2013, the University of North Dakota began building a new medical school in Grand Forks, N.D., to meet the growing need for medical personnel throughout the region. At more than 325,000 square feet, the larger facility will allow the university’s School of Medicine and Health Sciences to increase its medical school enrollment by 62 students and its health sciences enrollment by 90 students. Post-graduate residency enrollment will also be expanded by a total of 51 residents. Estimated to cost nearly $124 million, the project is being funded through the state of North Dakota and should be complete in mid-2016.

JLG Architects, Los Angeles-based Steinberg Architects and Minneapolis-based Perkins + Will designed the building, which will feature a number of aspects that allow students, researchers and faculty to more frequently connect and collaborate, according to Randy Ekren, chair of the building committee and associate dean for administration and finance at UND’s medical school. So-called “Main Streets” on each of the four floors will be

flanked by classrooms and lounge spaces, which will lead to collaborative spaces and group study rooms as well as private study stations. A grand staircase will not only offer a dramatic first impression at the school’s entrance but will serve as the school’s “social heart” by encouraging impromptu interdisciplinary collaborations and moments of informal learning, according to Eken.

In warm weather months, students will have additional opportunities to interact and collaborate at several outdoor patios as well as an amphitheater, which will provide a large gathering space as well as outlets for smaller groups to work and study.

The research wing has been designed to be as integrated with the main body of the building as possible, which Ekren says highlights the smooth transition of education to practice as well as the integral nature of lifelong learning and collaboration across boundaries in science. Collaboration will be emphasized here, too, with an open lab area for researchers to work together on related topics, a centralized equipment corridor and labs designed for easy customization and modifications as needs

Construction of the University of North Dakota School of Medicine & Health Sciences facility in Grand Forks, N.D., shown here in early December 2014, is expected to reach its peak this spring. The project is slated to be complete in 2016. PHOTO: JOHN BROSE/BROSE PHOTOGRAPHY

jlgarchitects.com

jlgarchitects.com

E PLURIBUS UN D UM ( (

E PLURIBUS UN D UM ( (

e ploo-ri-boo s oo-noo m; Latin: out of many, one (motto of the U.S.).

e pluribus unum

e ploo-ri-boo s oo-noo m; Latin: out of many, one (motto of the U.S.).

The efforts of hundreds at the North Dakota Legislature and the University of North Dakota School of Medicine and Health Sciences are starting to take shape in a new facility that is so much more than one building: It’s the future of healthcare for generations of North Dakotans. That’s why JLG Architects and our design partners worked with hundreds of faculty, staff, students, administration and the community to plan every square inch of the largest publiclyfunded project in state history – to make sure that every dollar counts. Currently on budget and ahead of schedule, the Interdisciplinary collaborative learning communities, shared and flexible research spaces, and simulated training centers will give educators the best opportunity to train and retain professionals and improve the efficiency of health care delivery in the state. Because we know it’s not the size of the building, but how you use it.

The efforts of hundreds at the North Dakota Legislature and the University of North Dakota School of Medicine and Health Sciences are starting to take shape in a new facility that is so much more than one building: It’s the future of healthcare for generations of North Dakotans. That’s why JLG Architects and our design partners worked with hundreds of faculty, staff, students, administration and the community to plan every square inch of the largest publiclyfunded project in state history – to make sure that every dollar counts. Currently on budget and ahead of schedule, the Interdisciplinary collaborative learning communities, shared and flexible research spaces, and simulated training centers

(continued from page 30)

change. A total of 43,500 square feet of lab space will be included for 40 researchers in the research wing.

Other features of the school include a simulation center designed to serve as a bridge between the classroom and clinical experience, and a digital library, known as Knowledge and Resource Management, which will utilize technology as a resource and eliminate the need for hard copy books and journals.

Designers, along with the projects engineers and consultants, also took care to follow sustainability guidelines, resulting in a project that is expected to qualify for LEED certification. Sustainable

Project Players

The design for UND’s new School of Medicine & Health Sciences includes a massive grand staircase -- the opening of which is shown in this December 2014 photo -- that will serve as a dramatic first-impression for visitors of the facility and an impromptu collaborative space for students, researchers and faculty.

steps taken in the design include the use of native plantings, rain gardens and an emphasis on harvesting natural light through design and placement of the building.

Construction activities will peak this spring and are expected to last through spring 2016. Before it is finished, an estimated 1,500 trade workers will participate in the project, putting in more than 450,000 man hours of work to complete the building. PB

Kris Bevill Editor, Prairie Business 701-306-8561, kbevill@prairiebizmag.com

PHOTO: JOHN BROSE/ BROSE PHOTOGRAPHY

Williston wealth advisors get big city backers

New York City’s Lebenthal enters market through local partnership

BY MARNIE LAHTINEN

In November, Williston’s TruWealth Financial entered into a partnership with Lebenthal Wealth Advisors, a major national financial services firm. Three Williston natives and financial advisors — Clay Skurdal, Brion Norby and Brent Lee — now lead TruWealth Financial, a Lebenthal Wealth Advisory Practice.

Lebenthal Holdings, based in New York City, launched Lebenthal Wealth Advisors earlier this year in an effort to expand the firm’s ability to serve institutional and retail clients with a range of financial products and services. Lebenthal Weath Advisors focuses on personal wealth management, high and ultra-high net-worth family offices and corporate debt and equity underwriting.

Norby and Lee co-founded TruWealth Financial in Williston in 2013. “Our mission was to

bring the best financial services that were available anywhere in the world to the people of our local community,” Norby says.

Business grew rapidly, and within a year, Norby and Lee were looking to add additional advisors. A fateful meeting at an investment conference led them to Skurdal.

“We got connected with Clay while in Chicago … and that’s how TruWealth got connected with Lebenthal,” Lee says. “Now, through this partnership we have top-shelf expertise and product availability, with big city capabilities and small-town connections right here in Williston.”

The advisors believe their Williston lineage offers something unique to Williston investors: Wall Street financial expertise from guys who grew up down the street.

Williston natives Brion Norby, left, and Brent Lee lead TruWealth Financial along with Clay Skurdal. The trio recently partnered with New York-based Lebenthal Holdings.

PHOTO: POLLY BUMGARDNER

“It’s a small community,” Lee says. “It’s absolutely critical that we were born and raised here and our families did business with families that are now our clients.”

“It’s not the local advisor on Main Street we are competing with … it’s JP Morgan, Merrill Lynch and the like that are flying in on jets, taking the accounts, getting back on a plane and flying away,” Lee explains. “It was our mission to be able to compete on that level, and through our partnership with Lebenthal, we actually exceed what those firms are able to bring to the table.”

“There are a couple of differences about our firm that really stand out,” Skurdal adds. “Depending on an income or wealth valuation of a family, there comes a point where you really need to be able to have a bigger toolbox available in terms of services.”

The advisors believe Lebenthal is a good fit because it affords TruWealth Financial access to its Family Office Platform.

“We believe Lebenthal has put together a group of best-in-class asset managers and an open architecture that allows advisors like ourselves to tap into the best of the best and have direct access to those individuals though the relationships Lebenthal has established over its long history,” Skurdal says.

Business is good, and growing, according to the advisors.

“Business has lived up to our expectations and that’s because of the close relationships we have established from growing up here and living here,” Norby says. “We have spent a lot of time building our tool chest … We have enhanced current relationships and developed new relationships along the way.”

The recent dip in oil prices is not of great concern to these financial advisors. “As far as our business goes, a lot of our clients are not completely reliant on just oil,” Norby says. “We work with farmers and business owners … with the dip in oil we are not going to see businesses closing up and people leaving town unless something drastic happens. We anticipate that things may slow down; however, we don’t anticipate businesses closing.”

Lee agrees. “A lot of our core clients have already made their wealth in oil. They have weathered previous busts and are prepared if the brakes go on … they are more than ready.” PB

Marnie Lahtinen Contributing writer MarnieLahtinen@gmail.com

Drilling Productivity Report Year-over-year

Drilling Productivity Report Year-over-year summary

Monthly

Monthly

December

drilling data through November projected production through January

drilling data through November projected production through January

January-2014

Legacy gas production change

BakkenEagle FordHaynesvilleMarcellusNiobraraPermianUtica

January-2014 January-2015

January-2014

Indicated monthly change in oil production (Jan vs. Dec)

January-2014 January-2015

BakkenEagle FordHaynesvilleMarcellusNiobraraPermianUtica

January-2014

Indicated monthly change in gas production (Jan vs. Dec)

January-2014 January-2015

January-2014

Indicated monthly change in gas production (Jan vs. Dec)

January-2014

SOURCE: U.S. DOE ENERGY INFORMATION ADMINISTRATION

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