Cimarron grows, also preps for downturn

Cimarron Electric CEO Mark Snowden said his estimation was that 2018 would probably be the highpoint for oilfield drilling and related activity in Kingfisher County, if crude prices stay in the neighborhood of the $52 per barrel mark.

Speaking at the Kingfisher Rotary Club’s weekly Tuesday luncheon, Snowden narrated a Power-Point slide show featuring photos of the 2013 ice storm which caused major damage to much of Cimarron’s power grid.

He also provided statistics of the remarkable growth the cooperative has been able to sustain over the past several years due to the tremendous oil and gas activity related to the STACK play which has centered in Kingfisher and Canadian counties.

He also showed photos of new construction on the main campus of Cimarron Electric north of Kingfisher, which has dramatically increased warehouse space.

“Storing equipment and supplies became a major logistical problem for us beginning in early 2016 when we moved $100,000 of merchandise through our warehouse each month, to today, when we move $1.2 million each month,” he said.

“We made some major upgrades in our facilities since then and it has made us a much more cost and labor efficient organization.”

Snowden said there are 806 rural electric cooperatives across the nation and for the 2017-2018 period, Cimarron Electric ranked No. 1 in growth.

“We also currently rank as the most efficient, with the most modern grid, because of our board’s aggressive approach to upgrading poles and lines during this large increase in oil activity,” he said.

He said Cimarron Electric was 100 percent independent of government funding outside of Federal Emergency Management (FEMA) reimbursement for storm damage.

When asked if Kingfisher County had seen the highpoint of the oil boom in 2018, Snowden said that all he could go by was the current price of oil and what projections the “Big 5” drilling companies are making regarding 2019 activity.

“From what they are telling me, if 2018 was a 10, then 2019 will be a three or a four. Again, I don’t know that for a certainty, and if the price of oil increases dramatically, that all changes, but from what I’m being told, many rigs are being moved down south of Chickasha for that SCOOP play, and the numbers of holes to be drilled in Kingfisher County will decrease,” he said.

“That doesn’t mean it’s all going away. They tell us they are just going at a slower pace. We’ll still see quite a bit of oilfield activity.”

Snowden said Cimarron Electric is prepared for the slowdown.

“We’re down from a high a couple of years ago of 64 to 52 full-time employees, and we have become more automated, and have been able through technology enhancements to do more work with less people.

“Much of our work out there in our area of service is contracted to service companies we trust and we have a great working relationship with them,” he said.

That will be beneficial when it comes time to lessen the workload here, he said.

“The good thing about that is that when the work slows down, we can turn them loose, bid them farewell, and don’t have to lay off our own workers,” Snowden added.

“We’re making the most of the increase in income during the boom by upgrading and improving our grid, so that everyone benefits when it returns whatever the new normal will become.”

Snowden concluded by inviting the Rotary Club to visit the home office.

“We would be delighted to feed you lunch and give you a guided tour of the facilities,” he said.

“We’re proud of it, and love the opportunity to show you around.”