Profit builders --- Mike
>> well, in our series called "profit builders" we've been spotlighting firms that can boast the most over their bottom lines. today, we're zeroing in on an oklahoma-based oil and natural gas driller, units corporation. the stock has delivered annual income growth of almost 86% for five years. mike schneider spoke with the chief executive and began by asking him if the profit momentum like that can continue.
>> well, it's very difficult to maintain that level of growth. we accomplished it by basically sticking to our primary business, we were basically have two segments in our business. drilling for third parties, drilling company and unit petroleum and those businesses obviously with increasing gas prices have performed very well and we're delighted with them.
>> how much, if you can break it down a bits, it may be difficult, but when gas prices go up, say, $1 a barrel, oil prices go up $1 a barrel, how directly impacted are you by that? >
> well, indirectly. our business-we are basically focused on the natural gas industry. the bulk of our rigs drill for natural gas. the bulk of our production is natural gas and while there is generally a correlation that's not as close as it used to be with oil and gas prices, we are more impacted by natural gas prices.
>> natural gas last year, we heard all sorts of stories about shortages, we might not be able to get through the winter. what does it look like this winder?
>> well, the storage will get full every year. it depens on what price that gas is and gas is certainly responding. we've had, i think, a paradigm shift in natural gas prices from the $2 level toll the $4 to $5 level and the $4 to $5 level is stimulating significantly greater drilling and greater capital investment by exploration companies. and those are both very positive events for our company.
>> the recent hurricanes, which have been blamed for much of the run-up in specific oil prices, but in energy prices as a whole, how much has that impacted you?
>> that didn't impact us at all. we're totally an on shore company and certainly the industry was impacted by several platforms that are out in the gulf. but as far as units is concerned, we were not impacted.
>> taking a look at the u.s. economy overall, what do you see, what do you anticipate and how do you expect that to affect you?
>> well, the economy is always the big gorilla. that it's the controlling factor and we think the economy, for the next several years, is going to be-have a slow, but steady upwards movement and we think that the economy will be very favorable for our business during that period of time.
>> and if it is favorable, how does that affect you, for instance, with acquisitions? you have made them. will you continue to make them?
>> we will-we will continue to look at expanding both sides of our business as long as we can do it economically. the economics obviously are the driving factor and as long as we can add to our rig fleet or oil and gas production, we will certainly continue to do so.
>> and you have acquisitions planned at this point?
>> well, acquisitions are very difficult to plan. we're always alert to opportunities and we have made a cup of acquisitions this year. in fact, we've made three acquisitions this year. but whether or not we make any next year depends on the opportunities.
>> and before i have to let you go, hiring. do you anticipate hiring or in terms of the job scene, how will that be impacting you?
>> well, personnel is one of the major factors that is a detriment in our business today. inversely, all sides of the business. we do not have enough technical people, geologists, geo physicists, line men, engineers in the business. we definitely need to have an influx of new young people into the business. the average age for geologists in the houston geological society, for instance, is 49. we definitely need people there. on the rig side of our business, we very much struggle to keep people employed there. we have a high degree of turnover. it's a business we've always had a high degree of turnover, but with accelerating utilization and accelerating number of rigs, keeping personnel is a major problem for us.
>> all right. just for the record, the tulsa, oklahoma based company, as of the end of last year had about 1900 employees. you see the shares up 2% today, within a fraction of an all-time high set earlier in the week. despite the recent declines in stock prices, investors continue to put money into mutual funds. the latest estimates from afments m.g. data service show investors added about $2.1 billion to stock or equity mutual funds for the weekending on wednesday. that is the fivet straight week of inflows for stock funds, also up from $1.7 billion last week. most of money went into funds investing in u.s. stocks, by comparison, taxable bond funds took in about half that amount. global stocks may be poised for a-to break their quarterly winning streak on spiking oil prices. that story up next.
