By any measure, 2005 was a remarkable year for the upstream industry and its investors. It was a year no one will ever forget. There were few executives who could not point with pride to outstanding results due to all-time-high commodity prices and increased production. Yet before results can be tallied and bows taken, leaders must roll up their sleeves and commit to creative, bold and focused performance. For our third annual Oil and Gas Investor Excellence Awards, we are pleased to honor outstanding corporate performance on a variety of levels. In this and subsequent issues, the editors will bring you all the details on how these companies translated smart leadership and ambition into success and value.
First, we're delighted to recognize Bob R. Simpson as Executive of the Year. The rising tide lifted all boats last year, but even so, we believe it still matters who leads the crew. The dynamic chairman and CEO of XTO Energy Inc. in Fort Worth has consistently delivered industry-leading returns to shareholders for more than a decade. In 2005 he again grew the company, which now commands about 7.5 trillion cubic feet equivalent of proved reserves, through one of the more active growth campaigns. His game plan included the full range of tactics: aggressive drilling and acquisitions in resource plays, asset trades and large-scale farm-ins with a major.
The Best Discovery Award goes to Denver's Bill Barrett Corp. for its West Tavaputs exploratory test in eastern Utah, the Peter's Point 6-7D, which was completed in three formations. The Barrett team has long been well regarded for its exploration prowess in the Rocky Mountain region. In this issue, we detail how the persistent company has again come up with a winner (which may contain at least 200 billion cubic feet equivalent of recoverable reserves), despite several regulatory and technical obstacles.
In M&A Deal of the Year, we honor one of the most aggressive and savvy acquirers in the industry, Chesapeake Energy Corp. Last year, in addition to numerous smaller deals, the Oklahoma City company grabbed the brass ring by stepping into a new operating region, the Appalachian Basin, with its estimated $3.1-billion purchase of Columbia Natural Resources LLC. The company gained 1.1 trillion cubic feet equivalent of proved reserves and 4.1 million net lease acres in a deal that changes Chesapeake-and will undoubtedly affect the basin as well.
Financing of the Year goes to partners Comstock Resources Inc. of Dallas and Bois d'Arc Offshore Ltd. of Houston for their recapitalization of their Gulf of Mexico joint venture through the JV's spin-out and public debut of Bois d'Arc Energy Inc. Both companies contributing assets, as well as the new public entity, go forward stronger for the deal.
Fort Worth's Range Resources Corp. is honored for Best Field Rejuvenation in a strong category with many fine nominations. The company has vastly expanded production in its West Fuhrman-Mascho Unit in Andrews County, Texas, through infill drilling and aggressive fracing techniques, bringing a field that dates from the 1930s to new heights.
Many companies experienced surging stock prices and increased analyst attention last year. But Houston-based ATP Oil & Gas Corp. gets our nod for Best Investor Relations Program. The stock nearly doubled and the market cap approached $1 billion, the number of analysts covering the company grew, and the IR team was on the road meeting with investors more than it was home.
Finally, Best Corporate Citizen, which we regard as one of the most important award categories, goes to Venoco Inc. The company, based in Carpenteria, California, has committed to community outreach and environmental education programs in southern California as well as quietly donating money to good causes. Our thanks to all the industry members who nominated candidates for these awards. We invite you to think about outstanding company performance again when nominations for 2006 open in the fall. For now, we hope these winners inspire you in the coming months.
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