Oklahoma celebrates its centennial in November -- Happy Birthday, Oklahoma!
Today, Oklahoma is known as one of the most business-friendly states, due in part to low tax rates. Oklahoma's economy is based largely on the energy, aviation, and food processing sectors. From 2000 to 2006, Oklahoma's gross domestic product increased 50 percent. The GDP per capita grew almost 10 percent between 2005 and 2006, one of the highest rates in the nation.
Fortune magazine's 2007 list of the fastest growing companies in the U.S. included six from Oklahoma. At number three on the list was Tulsa-based Arena Resources Inc. (NYSE: ARD), a seven-year old oil and gas firm with a three-year annual growth rate of 165 percent. Back in August, Arena announced strong second quarter 2007 financial and operating results. Arena is also a major holding in the Bruce Fund, which recently made the 2007 Forbes Honor Roll.
Tulsa-based oil and gas driller Helmerich & Payne Inc. (NYSE: HP) had a three-year annual growth rate of 37 percent, which beat the S&P 500. In August, H&P announced strong second quarter 2007 results, as well as two new contracts. The Motley Fool sees expansion in other sectors as good news for drillers such as H&P.
Tulsa-based Unit Corp. (NYSE: UNT), which owns pipelines as well as being an oil and gas driller, saw a three-year annual growth rate of 58 percent. Second quarter 2007 results showed Unit in a strong position after struggling recently, due to a refinery fire and other circumstances. Lenny Dykstra sees the inherent strength of the company, combined with recent decline in the share price, as a reason to buy.
Chesapeake Energy Corp. (NYSE: CHK), the largest independent natural gas producer in the U.S., is based in Oklahoma City. Its three-year annual growth rate was 65 percent, which easily beat the S&P 500. It reported strong second quarter 2007 results, and also plans to build new eastern regional headquarters in West Virginia; Chesapeake is the most active natural gas driller in the Appalachian basin. The Motley Fool likes Chesapeake's exploration strategies, as well as its moves in light of slipping natural gas prices.
The final company on the list is Tulsa-based ONEOK Inc. (NYSE: OKE), the seventh largest natural gas utility in the U.S., as well as a Fortune 500 company. It had a three-year annual growth rate of 72 percent. Back in August, ONEOK's second quarter 2007 results reflected the hit from natural gas price volatility, but ONEOK reaffirmed its 2007 guidance, though with a narrower margin. Shortly after that, the Motley Fool picked ONEOK as a Best Stock. More recently, though, ONEOK announced that its third quarter profit would probably fall at the lower end of the announced range, but again reaffirmed its 2007 guidance.
Other Oklahoma-based companies that may be worth a look include Devon Energy Corp. (NYSE: DVN) and the Williams Companies (NYSE: WMB). Both energy-related companies are included in the S&P 500 index, and Williams is also a Fortune 500 company. Devon recently announced cash dividends for both common and preferred shareholders, and also was upgraded by one analyst due to improving market conditions. Williams has announced moves toward an IPO for its Williams Pipeline Partners, LP.
Senator Sanders proposes legislation to break up large banks
Closing Bell: Unemployment must not be relevant (GE, ACOM, FNM, ZIOP, MOT, NVDA)
Employee productivity up close to 10%
