From Wildcatters to Wall Street: The Role of Independents and Small Operators in Today's Oil Patch

Ehrman, Monika¹ (1) Locke Liddell & Sapp LLP, Dallas, TX

The topic of this presentation will focus on the session, “Niche Players: Where do Independents and Small Operators Fit in Today's Oil Patch?” This presentation argues that independents and small operators (“I/SO” or “I/SOs”) are vital to the health of the oil and gas exploration and production sector. Their agile structure and ability to take on risk encourages development and growth in areas that integrated and larger companies are unable to solely focus on. Although this presentation will focus on domestic operations, it will also briefly examine the role of the independent and small operator abroad.

In particular, this presentation will: (1) present an overview of the makeup of I/SOs; (2) explore ideas on how I/SOs can stay competitive; and (3) examine what lessons other E&P companies, even those who are not I/SOs, can learn from I/SOs. Specifically, this presentation will separately examine each of the above points as related to independents and small operators. Part one is a general overview and will include discussion on risk management and financial limitations; parts two and three will include discussion on building relationships with majors, developing partnerships, implementing a successful acquisition strategy, and keeping up with technology. Throughout the presentation, examples of “real” I/SOs will be used as illustration.