Stephen (Steve) D. Smith
"When I stand before God at the end of my life, I would hope that I would not have a single bit of talent left, and could say, 'I used everything You gave me.'"
– Erma Bombeck, American Humorist
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"Hold fast to dreams, for if dreams die, life is a broken-winged bird that cannot fly."
– Langston Hughes, American Poet & Playwright
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"Do not pray for an easy life, pray for the strength to endure a difficult one."
– Bruce Lee, Chinese-American Martial Artist
ABOUT STEVE
NTE’s President, CEO, and COO, Steve is a third generation oil man, natural leader, and entrepreneur. His decades of senior-level logistical and business management experience along with his massive success with conventional and unconventional plays assures he is equally comfortable managing multi-line horizontal and directional wells worth $40 million as collaborating with international stakeholders to bring projects to fruition.
Steve has management experience in nearly every type of oil well configuration, including conventional, unconventional, multilateral, horizontal, directional, under-balanced, Mud Cap, HPHT, and air drilling. He is accustomed to managing relationships between domestic and international clients. His broad experience overseeing onshore and offshore wells gives him a competitive edge in managing projects from start to finish.
From mid-2008 through 2015, Steve co-led Harding Energy Partners' (HEP; the precursor to NexTier Energy) strategic partnership with PetroChina and Sinopec, developing the first-ever gas shale and horizontal oil wells in China. Through his work with Chinese energy companies, Steve opened up China to unconventional plays and helped map potential drill sites across the entire country.
In the mid-2000s as President, CEO, and COO of HEP, Steve led the joint venture between ExxonMobil and HEP. They introduced ExxonMobil to the Barnett Shale in the Dallas-Fort Worth region and facilitated the development of the company’s initial wells in the area. Steve was in charge of obtaining drilling permits, leading meetings with city, county, and state officials to help update drilling laws and local ordinances. At the conclusion of the joint venture, HEP purchased ExxonMobil’s interests and later sold all of the assets to Chesapeake Energy in a package worth roughly $500 million.
From 2004 to 2011, Steve was responsible for securing funding and a strategic partner to exploit 146,000 acres spread across five counties in east Texas to drill a James limestone “Liquids Rich” discovery well. After successfully striking oil and bringing shareholders windfall profits, HEP made a strategic exit on the play.
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Prior to leading HEP, Steve lent his expertise to a variety of firms drilling wildcat wells across south Texas and Louisiana. Before that he was the Senior Drilling Supervisor & Project Engineer in Algeria and Tunisia for Anadarko Petroleum and worked a 28/28 rotational schedule. He was responsible for explorational and development drilling and completion of over 50 vertical wells in Algeria and three exploration wells in Tunisia, one of which led to the discovery of a field later developed by Pioneer Natural Gas Resources. While in Algeria, Steve saved the company approximately $138 million over five years by reducing drilling completion costs by 33% and reducing average drilling days by 38%.
In 2003, Steve was employed by First Calgary Petroleum of Canada as their Algerian Country Manager and Operations Engineer in Hassi Messaoud, Algeria. He developed and implemented a partnership with Sonatrach in the Algerian desert for a two-well 4200m package and initiated start-ups for the company. He wrote drilling programs, ordered and shipped all equipment , and hired drilling supervisors. First Calgary Petroleum shortly thereafter sold its 1.3 billion barrels of oil and gas for $923 million to Italy’s Eni S.p.A.
Steve and Kerrie, his wife of over 30 years, have five children and ten grandchildren. His philanthropic efforts include being an International Medalist Chairman for Lay Witnesses for Christ (LWFC) and a supporter of the Joshua Experience band. He has also been a spelling bee judge for Instituto Amistad De Acuña AC (a Christian school in Mexico) and supported domestic and international missionaries.
Most Memorable Job Experiences
Becoming an Independent Oil and Gas Man
1986: I became an independent oil and gas investor and money raiser for my very first oil and gas projects in Andrews County, TX. I could drill and complete these wells for one-third the cost to what it cost earlier in 1980's. I raised capital and we participated in multiple wells with 100% success at the Shafter Lake San Andres Field when the oil price was $8.50/bbl. In September of 1990, the price of oil was $90/bbl and the Persian Gulf War started, which resulted in a quadrupling of our oil run checks (distributions by operator to investors). After producing for over 30 years, these wells were sold to new operators in 2016 so they could participate in the unconventional shale rush in the Permian Basin.
Concho Bluff Prospect
1985: I discovered mistakes made by a Private Oil Company caused a well to be Plugged and Abandoned due to review of incorrect results. I took the correct information and found a landman to help me market this mistake then introduced project to 40 different new operators. We finally found one that would purchase our deal. This new Oil and Gas company re-entered the same well Plugged and Abandoned by the Private Oil Company 3 months earlier and made the largest Oil Discovery that year in Ector County, Texas. This company went onto drill many new wells and the new field was waterflooded and extended an existing field South form the original field.
Saving NYC Investment Group $133mm
August 9, 2014 Oil Price was $96.65/bbl: I met up with former investment partner of Warren Buffett who lived in the DFW Metroplex He asked me to investigate an oil and gas investment of $133mm he was contemplating. This investment was with an Energy Company and multiple wells in the Bakken/Three Forks Development North Dakota, Sand Wash Basin, Colorado, Southeast Pinedale/Eden Ranch Green River Basin Wyoming & Green River Basin Utah. I told the gentleman not to invest in this prospect at this time due to oil prices about to collapse. He said his NY investment group was predicting oil prices going to $200/bbl. I told him the NY group was wrong and prices were about to fall to $60/bbl with potential to go lower to the $40/bbl range if the acceleration of the fall goes quicker.
He was shocked. I told him the package looked great, so hold onto it. Once the prices get to where we were projecting we can go back to them and purchase this same package for approximately $30-40mm.
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January 23, 2015 (167 days later), oil was $45.59/bbl: I informed the group prices were headed to $30/bbl and not to worry and we will be buyers at the $30/bbl level. He thanked me for saving him the $133mm and was very interested in my predictions and projections.
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January 15, 2016 (350 days later), oil hit $30/bbl: I instructed him to go purchase the same property we discussed in August 2014 for $133mm and we could purchase for $30-35mm. The group was scared and said the folks in NYC were predicting oil going to $8/bbl and did not think it was a good deal any more. I was trying to teach him a lesson and show how to be a “Real Oil Man Investor”. The oil price did a “double-bottom” at $29.35/bbl, so I called him back one last time to made a stronger pitch to his NYC folks and showed them how they were wrong and insisted they proceed with the purchase. The gentleman and his NYC group were scared stiff and refused to invest in any oil and gas project!
Negative $38/bbl Oil attempt to buy oil at that price
March 18, 2020: While driving to Midland/Odessa Texas to explore the southeast New Mexico and Permian/Delaware Basin, I observed the oil price hit a new record low of negative $38/bbl, so I called my oil broker and asked him to sell me 100,000 bbls of oil at the negative $38/bbl and that I would pay for it once the price gets back positive. I got my brother and my nephew to invest with me into several oil and gas companies during this day which were the historical lows of the majority of those in the last 15 years. We made huge profits over the next 24 months. Example of some stocks purchased: XOM @ $33.38/sh, RDSA @ $23.11/sh, OXY @ $9.96/sh, OKE @ $13.43/sh, TRGP @ $4.90/sh, MTDR @ $1.60/sh, WPX @ $1.94/sh & LUV @ $30.72/sh.
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Saving the M&M Ranch Mineral Owners over $2,000,000
April 2019: I was introduced to the M&M Ranch owners who owned the mineral and surface interests in multiple properties with two different oil and gas operators. After reviewing the documentation, I determined that the operators were charging the owners fees associated with producing and transporting their products to market in violation of their contract. After multiple meetings and visits with the operators and the assistance of legal counsel, we received a very favorable settlement in April 2023.
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