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| Texas Oil Titan Sells Legacy, Faces Uncertain Future with Billions in Hand |
Autry Stephens, the rugged Texas wildcatter who built an empire from a single well, is about to become a billionaire. But as he cashes out in a $26 billion deal, a tinge of regret lingers.
On Monday, Stephens announced the sale of Endeavor Energy Resources, the company born from his 1979 gamble, to Diamondback Energy. While the deal promises immense wealth, it marks the end of an era for the 85-year-old oilman, who poured his heart and soul into building a "little family" within Endeavor.
"There is certainly some sadness on my part," Stephens confessed, his voice heavy with emotion. He resisted selling Endeavor for years, even fending off offers from oil giants like Exxon Mobil. The company, a gem in the Permian Basin, was his lifeblood, and the thought of leaving his employees, many of whom spent their careers with him, pained him deeply.
But fate intervened. A cancer diagnosis, leaving him physically weakened, forced his hand. "That was a big factor in this decision," he admitted. The sale, a bittersweet victory, concludes a 62-year career that mirrored the turbulent journey of the oil industry itself.
Stephens' story exemplifies the shale revolution. He saw the potential early, riding the boom and weathering the busts. Now, he joins the ranks of private oil barons cashing in on shale riches, like Timothy Dunn of CrownRock who recently sold his company for $11 billion. These deals reshape the oil patch, consolidating smaller players like Endeavor into larger powerhouses.
Endeavor, one of the last giant private drillers, boasts a massive inventory of prime Permian acreage and produces a staggering 200,000 barrels of oil daily. The merger with Diamondback creates a behemoth rivalling ConocoPhillips and Exxon.
Stephens and his family will reap the windfall, receiving $8 billion in cash and owning most of the remaining shares. Despite his newfound wealth, his frugality remains legendary. He favors Southwest Airlines and drives a Land Cruiser, a stark contrast to the ostentatious lifestyle often associated with billionaires.
His daughter, Lyndal Greth, sits on the Endeavor board, but Stephens, concerned about overburdening her young family, decided against putting her in charge. His son, uninterested in the business, leaves the future of the family's oil legacy uncertain. Greth, prioritizing her children, expressed her honor to work with her father and praised his "unmatched ambition and integrity."
Six months ago, Exxon approached Stephens, but negotiations faltered. Endeavor then initiated a formal sale process, attracting interest from ConocoPhillips. However, Diamondback's cultural fit and geographic proximity proved more appealing.
Stephens' greatest pride lies in creating jobs and ensuring their longevity. He assured his employees of a secure future with Diamondback, stating, "Most of them will have a good job... that would be the No. 1 factor."
Stephens' journey began in a small Texas farming town. He envisioned exotic locales like Venezuela, but his petroleum engineering degree led him to Humble Oil, a precursor of Exxon. After a stint in the Army Corps of Engineers, he became a reservoir engineer before taking the plunge with his first well in 1979.
In 1996, he founded Big Dog Drilling, starting small with just one rig. Endeavor, established in 2000, marked a turning point. A 2005 acquisition allowed the company to expand significantly.
He navigated the industry's volatile cycles, facing near-collapse in 2008 and 2014 due to oil price crashes. But his unwavering belief in horizontal drilling and fracking techniques helped Endeavor unlock the Permian Basin's potential.
The merger is a coup for Diamondback, instantly boosting its market cap. Stephens, however, reflects on missed opportunities, wondering if they "sold out early." He hints at continued involvement in the oil business, but the future remains unclear.
With his fortune poised to place him among the world's 100 richest, Stephens grapples with the unexpected burden of wealth. "I just haven't thought about it," he says, his voice betraying a hint of bewilderment.
