Tarrant Business

Union Drilling reports earnings, plans to sell rigs

Union Drilling, based in Fort Worth, said Monday it earned $600,000 on revenues of $66.7 million in the third quarter, compared to a net loss of $4.4 million on revenues of $52 million in the same period a year ago. The most recent quarter included an $800,000, non-cash charge related to the pending sale of six drilling rigs.

Union said it plans to sell 31 rigs, which it said are smaller, older rigs in its fleet. As of Sept. 30 it had 51 rigs, not counting the rigs scheduled for sale in December. The company said it kept its rigs busy 59.4 percent of the time in the third quarter, compared to 54 percent the previous quarter and 53 percent a year earlier.

-- Jim Fuquay

 

Energy Future Holdings has third straight quarterly loss

Energy Future Holdings Corp., the Texas power company taken private in 2007 in the largest buyout in history, reported its third consecutive quarterly loss as interest costs rose and sales fell.The loss before adjustments was $710 million, compared to $2.9 billion a year earlier, which included a $4.1 billion write-down in the value of assets stemming from low wholesale power prices, the EFH said in a filing with the U.S. Securities and Exchange Commission.

Sales fell 11 percent to $2.32 billion as it lost customers at its TXU Energy retail electricity unit.Interest and related costs rose 50 percent to $505 million.After adjustments, Dallas-based Energy Future said it lost $76 million compared with profit of $17 million a year earlier. Those adjustments included a $321 million charge related to the Environmental Protection Agency’s Cross-State Air Pollution Rule, which EFH has said will force it to idle two generating units and reduce its lignite mining.

Last month, Energy Future sued the EPA, saying it would cost $1.5 billion through 2020 and at least 500 jobs to meet the new rule. Energy Future owns Oncor Holdings, North Texas’ principal power distribution utility, TXU Energy and Luminant, the state’s largest power generator.

-- Bloomberg News

 

Ranking Texas' biggest economic events in 50 years

Economist Ray Perryman this morning at a Fort Worth meeting of economic development officials offered his version of a Top 10 list: the state's most influential events since 1961. Perryman is a Texas native whose professional life has revolved around regional economics and forecasting, so he's probably as qualified as any to expound on the topic. Perryman divided the selections into 10 major categories, then decided on the most significant development within each. Here are his picks, with his own caveat that such a ranking leaves plenty of room for discussion. (That's what that "Comments" button is for, folks.)

1. Democraphics/sociological -- Air conditioning. Without AC, you don't have people relocating to the South, or moving to the suburbs and spending all that time driving into work.

2. Energy/natural resources -- The 1973-74 OPEC oil embargo, which pushed crude oil prices from $3 in the 1960s to $35  in the 1970s. As Perryman put it, "When the thing you sell the most increases in price by 1,200 percent, that's good."

3. Defense/aerospace -- Texas defense contractors landed plenty of big contracts during the Vietnam War, such as Bell Helicopter's Huey and General Dynamics' F-111. But the selection in 1961 of Houston by NASA as home of the manned spacecraft center tops the rest. When Neil Armstrong walked on the moon in 1969, "Houston was the center of the world," he says.

4. Transportation -- Dallas/Fort Worth Airport. Interstate highways are important, but the airport allowed the area to advance its position as the center of commerce and finance in the Southwest.

5. Tourism and culture -- TV's "Dallas?" The movies' "Urban Cowboy?" Willie Nelson and the Texas music outlaws? All good stuff. But Perryman picks the Astrodome's completion in 1965. Architects still vote it one of the most recognized structures in the world, he says.

6. Laws and regulations -- This one gets a little wonky. The move to branch banking in the 1980s and tort reform in the 1990s were major, but Perryman gives the nod to a state constitutional amendment in 1989 that declared economic development "a public purpose" that qualifies for public dollars, paving the way for city sales taxes for economic development.

7. Electronics -- Austin is the state's silicon center, and it started with two research consortiums: the Microelectronics and Computer Technology Corp. (MCC) in 1983, and the Semiconductor Manufacturing Technology (Sematech) in 1987. They marked a change in attitude in state leaders from depending on petroleum to pushing new technology as an economic driver.

8. Healthcare and biomedical -- The heart advances of Drs. Michael DeBakey (first coronary bypass) and Denton Cooley (first artificial heart) established the reputational foundation for the Houston's huge Texas Medical Center complex.

9. Corporate relocation and recruitment -- Alliance Airport. Perry says that in 1987 Ross Perot Jr. invited him for a helicopter ride above the north Fort Worth prairie, pointed to Interstate 35 and a major Santa Fe Railroad line, then asked: "What if we put an airport right here?" 

10. Globalization -- Texas had few exports in 1960, but now ranks No. 1, accounting for 14 pecent of all U.S. exports. A big reason: the North American Free Trade Agreement (NAFTA). Texas' trade just with Mexico is bigger than the total trade of most of the world's nations, Perryman says.

-- Jim Fuquay

Fort Worth's Frac Tech files to go public

Frac Tech International, a fast-growing privately owned oil and gas fracking firm, plans to go public and sell up to $1.15 billion in shares to the public, the company said in a federal securities filing.

Major shareholders plan to sell shares during the IPO. Chesapeake Operating is a 30 percent owner; Frac Tech did not disclose what proportion of their stakes the selling shareholders planned to offer.

Frac Tech, based in downtown Fort Worth’s Carter Burgess Plaza, said it would change its name to FTS International and be listed on the New York Stock Exchange. It said it intended to use all proceeds from the offering to pay down a $1.5 billion senior secured loan due May 6, 2016.

Frac Tech, founded in 2000, began providing fracking services in 2002.

The company said in its filing that its revenues were $1.28 billion in 2010, up from $214.4 million in 2006. Net profit was $368.6 million, up from $82.4 million. Frac Tech said it fractured 1,374 wells in 2010, compared to 398 in 2006.

The company said it has among the largest market shares in the Haynesville Shale in Louisiana and East Texas, Eagle Ford Shale in South Texas, and Marcellus Shale in Pennsylvania and West Virginia. It also has significant business in the Permian Basin in West Texas and the Bakken Shale in the Dakotas and Montana, the company said in its filing.

Its largest customers include XTO Energy and Range Resources.

Frac Tech said it has benefitted from a "dramatic increase" in horizontal drilling, and increases in the number of hydraulic fracturing stages per well, shale drilling in general, and international drilling.

Frac Tech stressed regulation was among its most significant investment risks.

"We are subject to federal, state and local laws and regulations regarding issues of health, safety and protection of the environment," Frac Tech said. "Under these laws and regulations, we may become liable for penalties, damages or costs of remediation or other corrective measures. Any changes in laws or government regulations could increase our costs of doing business."

The company’s largest shareholders are Maju Investments of Mauritius, 40.3 percent; Chesapeake Operating; Senja Capital, 11.2 percent; and Cowboy Investment, 7 percent.

Aubrey McClendon, CEO of Chesapeake Energy, sits on the Frac Tech board.

Bank of America, Merrill Lynch, Goldman Sachs, Citigroup and Credit Suisse are underwriting the offering.

Frac Tech filed to go public in December, but withdrew that in May.

- Scott Nishimura

Gasoline prices edge up in Texas

The average price of a gallon of regular gas in Texas edged up one penny to $3.48 on average this week over last year, AAA Texas Weekend Gas Watch reports today. The Fort Worth average is $3.45, up 2 cents.

“Oil is currently trading on the market at about $86 per barrel,” AAA Texas said. “Market analysts say with the recent U.S. jobs report showing no growth, and continued global economic concerns, there is an expectation that a weaker global economy will demand less oil. However, according to weather experts 2011 could continue to experience a busy hurricane season with the potential to have several more named storms which can also impact oil prices.  Hurricane concerns in the Gulf and East Coast have kept upward pressure on gasoline prices at the pump, even as relatively lower crude prices have exerted downward pressure on prices.  Hurricane season runs through November.”

- Scott Nishimura

Mouser Electronics, Gaylord Texan, others, put jobs on display at Chamber's Job Links

Mouser Electronics has been hiring a lot lately. The Mansfield company, owned by Berkshire Hathaway unit TTI, has 980 employees in Mansfield and hired 300 there last year.

The company has 60 openings currently, including 47 in Mansfield. The openings are in distribution, call center, IT, finance and accounting, and marketing, Paula Holcomb, Mouser vice president of human resources, told members of the Fort Worth Chamber of Commerce's Job Links Excelerator, a private monthly meetup of employers who have open jobs and organizations like universities and nonprofits that have candidate pools.

"We literally have positions across the board," Holcomb told the Job Links crowd, which met today at the Dee Kelly Alumni Center at TCU. To apply: www.mouser.com/careers

Other openings on display at at Wednesday's meeting:

Gaylord Texan Resort & Convention Center, Grapevine. Hiring for 300 seasonal and 200 other positions. The Gaylord last month began hiring for its big annual Ice holiday show. Openings include everything from Ice characters - Shrek is available - to accounting, human resources, and cooks. To apply: Gaylord's careers page.

Northwestern Mutual Financial Corp., Fort Worth. Wants to bring 26 financial advisers and a large number of interns on. Bachelor's degree required. To apply: deanna.stuart@nmfn.com

Edward Jones Investments. Bringing on more than 15 financial advisers in the Fort Worth area, and "several more" in the surrounding areas. Paid training for industry-required licenses. No degree required, "but preferred." To apply: Jake Richter, 817-870-1528

Pappagallo, fulltime assistant manager, Hulen Mall. To apply: Lisa Dickinson, sundance@pappagallo-classiques.com

ImageNet Consulting, two consultants. To apply: Craig Hill, chill@imagenetos.com

Whitley Penn, certified payroll processor. Associates degree required. To apply: send resume to opportunities@wpcpa.com

Larry Dennis Co., furniture wholesaler, Fort Worth. Sales and marketing position. How to apply: Larry Dennis, ldctx@att.net

Fort Worth Museum of Science and History, unpaid interns in development, design, human resources, accounting, membership, science, and history. To apply: fwmuseum.org

LKCM Radio Group, Fort Worth, account executive. To apply: Gina Dobbs, 817-332-0959

Imagetek Office Systems, Fort Worth. Two sales directors. Bachelors required. To apply: Chris Golla, cgolla@imagetekos.com

SafeHaven of Tarrant County. Cook, parttime client advocate, parttime bilingual client advocate, crisis interventionist, parttime sales associate, bilingual children case manager. To apply: SafeHaventc.org

Firestone Complete Auto Care, Roanoke. Fort Worth district manager. Salary $40,000-$100,000. To apply: firestonecompleteautocare.com

State Farm Insurance, Fort Worth. Agents. Paid training. To apply: Sarah Peck, 972-983-8475 or sarah.peck.luoj@statefarm.com

Barney Holland Oil Co., Fort Worth. Executive assistant, $35,000 salary. To apply: send resume to Fina Cardwell, fcardwell@fuelmandfw.com. Real estate experience and bilingual "a plus." Must have expert Microsoft Office skills, excellent verbal and written communications skills, "be able to think outside of the box."

Triumph Aerostructures-Vought Aircraft Division, Dallas. Hiring recruiters. To apply: www.triumphgroup.com/careers/overview

Tom Thumb, Grapevine. Meat cutter, cake decorator, food service. To apply: www.careersatsafeway.com and click on retail.

Robert Half International-OfficeTeam, administrative, human resource, executive assistants. To apply: OfficeTeam.

Pearl Hospitality, Fort Worth. Hiring several human development strategists. To apply, Camille Zihlman, camille@pearlhospitality.com

- Scott Nishimura 

Green Mountain hosting Wednesday Sept. 7 job fair

Green Mountain Energy Co. is holding a job fair, 9:30 a.m. – 12:30 p.m.  Wednesday Sept. 7, at the company’s Plano office, 255 W. 15^th St., Suite 100.

Green Mountain says it’s hiring more than 20 full and parttime field retail and event sales agents in the Metroplex. It’s also hiring for a fulltime recruiter, with benefits.

Agents will pitch Green Mountain and enroll prospective customers in retail storefronts and events.

Applicants should bring three references and a resume, and dress business casual. You should also complete an electronic form at Green Mountain's web site before coming to the fair.

- Scott Nishimura

Chesapeake Energy sends water to Palo Pinto firefighters

Chesapeake Energy, already sending out thousands of pounds of water this morning to local charities, reports it sent an additional palette of 1,750 bottles to firefighters.

- Scott Nishimura

Texas Labor Day weekend gasoline slightly more expensive, AAA Texas says

AAA Texas forecasts about 1.88 million Texans will drive this Labor Day weekend, and will pay one penny on average per gallon of gas more than last week.

The average price for a gallon of regular unleaded is $3.47 statewide, AAA Texas said. The national average is $3.63, up a nickel from last week.

The Fort Worth average is $3.43, up one penny.

- Scott Nishimura

Fort Worth engineering firm Peloton Land Solutions doubles office space

Peloton Land Solutions, a Fort Worth civil engineering, planning, survey, environmental and energy services firm, reports it’s doubling the size of its offices in the Sterling Office Park.

The firm said it has acquired another 4,000 square feet, giving it almost 8,000.

The firm reports it has grown to more than 35 employees in 20 months. “Peloton will continue to bring new hires on board,” the firm said.

- Scott Nishimura