For Thomas McConnell, exposure to the oil and gas industry came at an early age. Growing up, he watched his father, who had been in the business for more than 30 years, tackle the industry as a marketer and trader. “It just ran in the blood,” McConnell said, noting that two of his siblings also work in the industry. He knew he would eventually follow in his father’s footsteps.
McConnell joined Houston-based ARM Energy, an independent services company that provides midstream solutions, financial hedging advisory and physical marketing for E&P companies, in 2011. He started off scheduling natural gas in the southeast Gulf Coast and was the second employee on ARM’s physical marketing team—his father was the first employee and the previous president of that division. He later took on a natural gas marketing position where he traded the Gulf Coast, South Texas, the Northeast and the Rockies.
Working his way up the ladder, McConnell made the transition to managing ARM’s gas supply. In 2012, he became director of origination, based out of ARM’s Denver office, where he’s responsible for bringing in new business and getting face-to-face with producer clients.
Born and raised in Houston, McConnell graduated from Sam Houston State University in Huntsville, Texas, in 2009 with a degree in business. He got his first experience in the industry interning at Devon Energy Corp. in the southern division of its land department.
In his free time, McConnell enjoys hunting, fishing and hiking, as well as traveling with his wife Carla. His favorite destination so far is Turks and Caicos where they spent their honeymoon.
In an interview with Investor, McConnell discussed his journey into the oil and gas industry.
Investor How did your experience with Devon help you with this position today?
McConnell It really gave me the fundamentals to step up into a larger-scale position. It gave me the building blocks I needed to start my career off on the right foot, as well as research and analysis, time management and to set high goals to strive for. It was a good education and intern program that they had, and it helped me develop myself professionally.
Investor What do you enjoy about your role at ARM?
McConnell The interaction of being able to walk people through how the business was started and how we create the value that we can bring to E&P clients.
In addition, helping customers with the physical movements of oil, natural gas and NGL from the well head to the market. We utilize our senior staff’s deep skill sets and knowledge to provide our clients with best-in-class wellhead pricing.
Investor How did the opportunity of building ARM’s Rockies crude book come about?
McConnell We started out in the Bakken and South Texas on the oil side. We needed to grow those books of business and we had a Denver office that needed some help getting out there in front of people and bringing in deals.
I transferred from our Houston office to Denver to help facilitate some of those meetings and help bring in new clients and barrels to manage up in the Rockies, everything pretty much west of Texas.
Investor How does your starting role at ARM compare with your position today?
McConnell It’s a big jump from the mid-office position. It taught me the basic fundamentals of gas and NGL and oil into an originator of business development position where I’m now responsible for bringing in new clients and being the face of the company.
Investor Your father is your mentor. In what way has he helped you?
McConnell He’s taught me pretty much everything I know, along with the executives with the company, but he was the main driving force that helped me start from scratch and got me to where I am now. He taught me to be fair but firm in business dealing. Value your word and your name because at the end of the day, your reputation is what sticks with you, good or bad.
Investor What’s your vision for your future?
McConnell I see myself expanding my knowledge helping E&P companies in the continental U.S. capture accretive value by utilizing ARM’s dynamic approach.
Investor How important is hedging in today’s marketplace?
McConnell Hedging is extremely important during these volatile times in the market. We believe in an actively
managed hedge portfolio mitigating risk and aligning our interests with our clients.
Investor What challenges do your clients face as oil prices rise?
McConnell Our clients face many challenges in today’s market environment. We have seen a steady increase in price that has some of them drilling very aggressively and others still waiting to pounce on the right opportunity to get into a new area.
I would say the main challenge is how to protect their downside against the possibility of prices dropping lower. The current pricing strip allows some E&Ps to show solid returns. Right now is a good opportunity for people to take a hard look at what their growth strategies look like and come up with a game plan in respect to hedging and capital expenditures.
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