While we're on this subject, companies moving here as being a major driver of growth is a huge myth. That is a microscopic piece of the economic growth pie, even though when it does happen, it gets tons of attention.


Even with Global Payments, if that deal comes to pass they aren't moving anyone here. They'd be relocating from Edmond to Auto Alley and growing the employee numbers.

The huge percentage of growth is from home-grown companies, just like Echo (and Hobby Lobby, Paycom, MidFirst, American Fidelity and tons of smaller operations).

Even with with companies like Amazon and FedEx, new facilities here are completely a function of them growing their national logisitics which is happening in every major US market. They aren't relocating anyone or really 'choosing' OKC over other cities.

While we're on this subject, companies moving here as being a major driver of growth is a huge myth. That is a microscopic piece of the economic growth pie, even though when it does happen, it gets tons of attention.


Even with Global Payments, if that deal comes to pass they aren't moving anyone here. They'd be relocating from Edmond to Auto Alley and growing the employee numbers.

The huge percentage of growth is from home-grown companies, just like Echo (and Hobby Lobby, Paycom, MidFirst, American Fidelity and tons of smaller operations).

Even with with companies like Amazon and FedEx, new facilities here are completely a function of them growing their national logisitics which is happening in every major US market. They aren't relocating anyone or really 'choosing' OKC over other cities.
^^^^^^^
Exactly. And even when they are enjoying red-hot economies, MOST cities see such success largely courtesy growth in companies which are homegrown or already have a significant presence rather than via relocation. In fact, there are probably fewer than a dozen or so such "destination" cities in the U.S. who enjoy corporate relocation on a regular enough of a basis for it to be a significant part of their growth pattern. Relocation is definitely something you strive for, but you are much better off to spend most of your energy creating fertile ground for start-ups and working to retain/grow the companies you already have in your nest.

^

I bet for even those cities that do get the benefit of relocation, it still represents a small fraction of their overall growth.

After all, they are generally big, dynamic cities in the first place.

For sure.

Oops my bad. I should probably just ignore him too but I try not to use that feature on anyone and just let my blood pressure meds do their work. Otherwise how would I know which posts to report? :)

REALLY Laugh out Loud

Edit:

Concerns about moderation and other general operational issues are to be dealt with through personal message, not on the forum.

~ Pete

...turn up the heat!!!

How do we "turn up the heat". Even if we could, the man is made of asbestos apparently.

How do we "turn up the heat". Even if we could, the man is made of asbestos apparently.
Now that's funny!

The city could have the property declared abandoned, which it is and has been for a long time.

BTW, back to Echo and the Parkside...

My article stated they had leased 12,500 SF at the IBC Center in 2015 but believe they have expanded since then and perhaps significantly.

Not sure of their current square footage but I believe they plan to occupy most of the Parkside Building; not sure how much space will be left to lease.

Just to reiterate this is a big deal and I expect Echo to grow into a fairly good sized energy company based on what I've seen in the field. They'll IPO at some point. (You want to talk about a significant wealth creator and generator, IPOs do that.)

The rise and fall of energy companies in OKC is nothing new good to see some new ones starting to rise after the fall of SD and weakening of CHK.

Just to reiterate this is a big deal and I expect Echo to grow into a fairly good sized energy company based on what I've seen in the field. They'll IPO at some point. (You want to talk about a significant wealth creator and generator, IPOs do that.)

The rise and fall of energy companies in OKC is nothing new good to see some new ones starting to rise after the fall of SD and weakening of CHK.

Fortunately it seems that most new companies have learned what not to do from CHK and SD. As long as Echo grows at a responsible pace and doesn't over hire and take on a ton of debt, they should be fine. Look at both Devon and Continental. Continental has remained a juggernaut and DVN, while they did have to downsize a bit, has never really been struggling to the point of the company's future being in jeopardy.

BTW, back to Echo and the Parkside...

My article stated they had leased 12,500 SF at the IBC Center in 2015 but believe they have expanded since then and perhaps significantly.

Not sure of their current square footage but I believe they plan to occupy most of the Parkside Building; not sure how much space will be left to lease.

Would make sense that they grew significantly since that time. They definitely would've had to beef up at least their engineering, geology, and operations staffs to become an operator. I was surprised that they needed buses to get their employees there.

Oops...missed that this was Pete's edit...

A company like Echo keeps oil-money produced from Oklahoma resources in Oklahoma. They sell the product to people outside of OKC/Oklahoma to increase money flowing in.

For all its complexities, economic growth is at its base, a straight-forward concept: Increase the money flowing in, decrease the money flowing out, become more efficient in order to waste/expend less resources.

Most every company has the opportunity to create growth through that 3rd point. The first two are far trickier and the competition in those arenas are quite a bit higher. Since Echo does both of the above, it is always a massive win for OKC. Anybody who can't see that does not value the right things. It's by no means on the same level as the Enogex deal, but to not celebrate this as a win for a young city that is trying to solidify itself as a regional destination is . . . misguided.

A company like Echo keeps oil-money produced from Oklahoma resources in Oklahoma. They sell the product to people outside of OKC/Oklahoma to increase money flowing in.

For all its complexities, economic growth is at its base, a straight-forward concept: Increase the money flowing in, decrease the money flowing out, become more efficient in order to waste/expend less resources.

Most every company has the opportunity to create growth through that 3rd point. The first two are far trickier and the competition in those arenas are quite a bit higher. Since Echo does both of the above, it is always a massive win for OKC. Anybody who can't see that does not value the right things. It's by no means on the same level as the Enogex deal, but to not celebrate this as a win for a young city that is trying to solidify itself as a regional destination is . . . misguided.

It’s a win, to be sure. But I think we’re right to point out that operatorship is a completely different ball game (in terms of talent, capital requirements, and work load) than buying minerals off of unsuspecting grandmas.

And let’s be clear. The private equity money Echo has accepted won’t necessarily allow it to grow in the slow, steady Continental Resources model. Those Mitt Romney types want 50% IRRs, and they want them as fast as possible.

It will be interesting to see how it plays out. Obviously $70+ oil would help the cause.

Anybody know how many rigs & completion crews they're currently running? I never even heard of this company until Pete posted the article.

Anybody know how many rigs & completion crews they're currently running? I never even heard of this company until Pete posted the article.

They've been one of the largest mineral players in the SCOOP/STACK for ~5 years. I know they hired their first engineers for the operating side ~2 years ago, but can't speak to how many active drills they have.

Anybody know how many rigs & completion crews they're currently running? I never even heard of this company until Pete posted the article.

3 rigs as of Tuesday.

For reference there’s 150 rigs running in Oklahoma. Companies you’ve heard of, 16 continental. 9 Newfield. 8 Devon. 5 marathon. 2 Chesapeake. 4 Tapstone. 3 XTO. 2 chaparral

The rest are companies you probably haven’t heard of like Alta Mesa, roan, MEP, Jones, etc etc. the list is very long.

^

BTW, Jones Energy of Austin bought a bunch of old AEP assets (last Aubrey McClendon company), set up an OKC office but is now headed for oblivion.

They recently fired their senior management (including founder and OU grad Johnny Jones) and stock is trading at $.37.

^

BTW, Jones Energy of Austin bought a bunch of old AEP assets (last Aubrey McClendon company), set up an OKC office but is now headed for oblivion.

They recently fired their senior management (including founder and OU grad Johnny Jones) and stock is trading at $.37.

Wow. Thy just built out a pretty nice office space at the Valliance Tower on NWX.

Wow. Thy just built out a pretty nice office space at the Valliance Tower on NWX.

Yes, after moving from another nice office on N May which they moved into about a year ago.

It’s a win, to be sure. But I think we’re right to point out that operatorship is a completely different ball game (in terms of talent, capital requirements, and work load) than buying minerals off of unsuspecting grandmas.

And let’s be clear. The private equity money Echo has accepted won’t necessarily allow it to grow in the slow, steady Continental Resources model. Those Mitt Romney types want 50% IRRs, and they want them as fast as possible.

It will be interesting to see how it plays out. Obviously $70+ oil would help the cause.

I'm gathering Echo was started primarily on land deals but has just recently become a true operator?

I'm gathering Echo was started primarily on land deals but has just recently become a true operator?

Yeah. Would lease acreage in the same section as a major and participate in the well as a non-op. Built cash, got PE backing, started their drilling program.

Yeah. Would lease acreage in the same section as a major and participate in the well as a non-op. Built cash, got PE backing, started their drilling program.

Nice, well hopefully they don't pull a CHK or SD and are able to grow coming out of this recent price crash. Not to derail thread, but IMHO I see oil back to $100 in less than 12 months.

Nice, well hopefully they don't pull a CHK or SD and are able to grow coming out of this recent price crash. Not to derail thread, but IMHO I see oil back to $100 in less than 12 months.

Yep. It’s about to get wild again.

State is gonna have like a $2 billion dollar surplus with a 5% got instead of 1-2. Hopefully they put a ton of it in savings

Last night, Echo screened the Goonies at the Parkside Building.

Looks like they are using some sort of (rear-projection?) screen inside the glass.

Will be screening Hitchcock's North by Northwest on Oct. 12th at 7:30PM.

From their Twitter feed:

http://www.okctalk.com/images/pete/echo100518.jpg

Nice! I heard about this too late and wondered how they went about it! Someone tell them to get on DOKC, Inc's radar for their event calendar!

Most of this building is still empty, did Echo move in yet?

Most of this building is still empty, did Echo move in yet?

no

no

Ha ha, they bought the building to show movies on the side, lol!

Yeah, I've been wondering this too. I saw people inside shortly after the sale, but haven't seen any activity since then.

I forget the details, but I heard they are moving in later in the year. We'll see...

Echo Energy begins work on new downtown home (https://www.okctalk.com/content.php?r=619-Echo-Energy-begins-work-on-new-downtown-home)

Echo Energy, currently leasing space on NW Expressway, has started construction on what will be their new downtown offices in the heart of the central business district.


http://www.okctalk.com/images/pete/echo052819a.jpg


As OKCTalk was first to report (https://www.okctalk.com/content.php?r=514-Echo-Energy-revealed-as-purchaser-of-key-downtown-building), a limited liability company associated with Echo purchased what has been known as the Parkside Building in May of 2018 from SandRidge Energy.

Once planned as the centerpiece for an ambitious SandRidge campus, the building was originally designed for a large auditorium, gym, workout facilities, and rooftop sports courts. But due to financial difficulties, SandRidge abandoned the plans, left the structure in shell form, and put the property on the market.


http://www.okctalk.com/images/pete/echo052819fa.jpg


To the east and south of the building, Kerr and Couch parks recently received a multi-million makeover as the building sat completely empty for several years.

Plans show that Echo will take the top 3 floors; the 6th, 7th, and 7th-floor mezzanine, about 20,000 square feet in what is a visually separate top 'cube' of the building.

The remaining 5 floors will likely be leased to other tenants, including ground floor and patio space fronting the park that has been envisioned as a restaurant.

Design of the new offices is by Northwest Studio in Seattle.

Echo will be moving approximately 100 employees to the building upon completion of the improvements.


http://www.okctalk.com/images/pete/echo052819e.jpg


http://www.okctalk.com/images/pete/echo022219a.jpg


http://www.okctalk.com/images/pete/echo022219b.jpg


http://www.okctalk.com/images/pete/echo022219c.jpg


http://www.okctalk.com/images/pete/echo022219d.jpg

Any word on a possible ground floor tenant? I heard rumblings right when Echo bought the building, but not a word since.

Any word on a possible ground floor tenant? I heard rumblings right when Echo bought the building, but not a word since.

They are VERY private and methodical.

And there have been no building permits other than for the Echo space.

I suspect they are thinking very long-term here and this entire thing will continue to unfold pretty slowly.


BUT that ground level park space is really special. I'm sure something interesting will land there.

http://www.okctalk.com/images/pete/echo052819c.jpg

Lay-offs are coming at echo soon.

Two fold problem here.

The rock in Oklahoma is too gassy, not oily enough. Remember all those guys saying we have good rock not great rock, and we can’t go to a 7% GPT like Texas? Rig count in August, 155, today 100. That’s a 33% reduction in activity. The tax isn’t the cause of that but it certainly didn’t help much.

Operators like echo are PE backed, with the hopes a major swoops in and takes them out for a huge payday. Majors aren’t doing that right now, the exploration part of the cycle is over. They’re drilling their field and merging with other majors for more scale.

Which means echo and others have to run super lean.

They have been moving very slowly on building out their downtown space.

Of course, they own that building and it doesn't even seem they have the copious extra space for lease.

Lay-offs are coming at echo soon.

Two fold problem here.

The rock in Oklahoma is too gassy, not oily enough. Remember all those guys saying we have good rock not great rock, and we can’t go to a 7% GPT like Texas? Rig count in August, 155, today 100. That’s a 33% reduction in activity. The tax isn’t the cause of that but it certainly didn’t help much.

Operators like echo are PE backed, with the hopes a major swoops in and takes them out for a huge payday. Majors aren’t doing that right now, the exploration part of the cycle is over. They’re drilling their field and merging with other majors for more scale.

Which means echo and others have to run super lean.

layoffs occured at Echo a few weeks ago

nice, well hopefully they don't pull a chk or sd and are able to grow coming out of this recent price crash. Not to derail thread, but imho i see oil back to $100 in less than 12 months.


Yep. It’s about to get wild again.

State is gonna have like a $2 billion dollar surplus with a 5% got instead of 1-2. Hopefully they put a ton of it in savings


lol

Did anyone attend the event where they broadcast a movie on the side of the building? I know the OKC Energy and COOP are teaming up to do the same thing with the upcoming USWNT game on Sunday at 10:00 am. I'm worried about how difficult it will be to see the screen projection in broad daylight. Can anyone share their experiences?

Did anyone attend the event where they broadcast a movie on the side of the building? I know the OKC Energy and COOP are teaming up to do the same thing with the upcoming USWNT game on Sunday at 10:00 am. I'm worried about how difficult it will be to see the screen projection in broad daylight. Can anyone share their experiences?

It was actually a screen inside the glass that was rear-projected. So very different than the Together Square setup.

It was actually a screen inside the glass that was rear-projected. So very different than the Together Square setup.


Oops. I saw "Together Square" and confused it with the park near the Parkside building. Carry on.
;)

Work is continuing with the build-out of the top floors for Echo Energy.

I know they actively trying to find a restaurant tenant for the ground floor space, which overlooks the park and has a great patio.

http://www.okctalk.com/images/pete/echo102219b.jpg

a chipotle or qdoba would be great. no existing locations in the inner core, so a win/win.

With Echo's recent problems, I wonder how many employees they have left to move to this building?

Anyone know?

With Echo's recent problems, I wonder how many employees they have left to move to this building?

Anyone know?

They are down to less than 40 employees. With the pending sell of 2/3 of their business, possibly at a very heavy loss, and capital markets closed for now, I would expect even more cuts.

For all Echo's problems, work is continuing here on the Parkside Buildings (photos from Lingo Construction's FB page):

http://www.okctalk.com/images/pete/parkside022620a.jpg


http://www.okctalk.com/images/pete/parkside022620b.jpg

Took these last night:

http://www.okctalk.com/images/pete/parkside031120a.jpg


http://www.okctalk.com/images/pete/parkside031120b.jpg

Echo already moving out...

https://oklahoman.com/article/5658971/echo-energy-moved-downtown-at-awkward-time

Our CBD is about to be completely dead.

They also filed for bankruptcy a week ago. That probably has more to do with it than the ‘Rona.

Wonder why steve-o left that out

Who needs $$ office space when those who can are working from home?

#glut

Echo already moving out...

https://oklahoman.com/article/5658971/echo-energy-moved-downtown-at-awkward-time

I seriously doubt they have/had 80 employees.

They've been going through all types of problems and just filed for bankruptcy. I'm sure this 'interview' was given to deflect attention from this:

http://www.okctalk.com/images/pete/echo033120a.jpg

Echo already moving out...

https://oklahoman.com/article/5658971/echo-energy-moved-downtown-at-awkward-time

I think it needs to be said as it isn't stated clearly in the article that the reason they are moving out is to work from home due to the coronavirus. They are planning to move back in once things open back up.

Hilarious that the CEO is calling the building "The Zig." I'll give him some credit, though: he and Kate do know how to raise cash, even if they aren't necessarily great at generating returns.

Kanady said his company also remains committed to maintaining Kerr Park “as active and vibrant as possible.”

“We view Kerr Park as a public backyard perfect for lots of outdoor activity and we want the entire city to enjoy it with us,” Kanady said. “The Zig should be nothing but to be additive to Kerr Park and the downtown community. Now that Echo has moved in, our hope is the Zig functions as more connective tissue at the intersection of Automobile Alley, Deep Deuce, Scissortail Park, Film Row and Bricktown.”

Zig short for Ziggurat? Oddly not pyramidal.

I seriously doubt they have/had 80 employees.

They've been going through all types of problems and just filed for bankruptcy. I'm sure this 'interview' was given to deflect attention from this:

http://www.okctalk.com/images/pete/echo033120a.jpg

They definitely have considerably less than 80 employees currently. Cut that number in half and you are closer to the truth.

As for the bankruptcy, this is their former operated business line which sold at auction a couple months ago. They still have their mineral fund which has kept them afloat, but is struggling like all other companies in the energy sector.

65