Oil represents about 65 percent of Chaparral's reserves and about 60 percent of its current production.
“I generally always had the opinion that oil is a global commodity while gas is a national commodity,” Fischer said. “When you look at these oil plays now, the amount of oil we're going to generate is very significant from a U.S. standpoint, but from a global perspective, it's only about six percent. Chances are good that we are not going to see a large oil price drop like we saw with gas.”
While the state's largest publicly traded energy companies tend to grab the most attention, Chaparral and the state's privately held energy companies contribute heavily to the economy and the state's energy industry, said Jake Dollarhide, CEO of Tulsa-based Longbow Asset Management Co.
“Small businesses and privately held companies are the lifeblood of our economy,” Dollarhide said. “They're what keep everything going. The high-profile publicly traded names get the attention, but it's the small business and big businesses that are privately held that are able to take the risk and do things that public companies can't do.”
Chaparral for years has flirted with becoming publicly traded. Fischer said he expects to complete an initial public offering in 2014.
“Because we have been around for 25 years, many of our shareholders have gotten older,” Fischer said. “With that, they are beginning to ask for a liquidity event that would allow them to derive the benefits of what has been expended. We could look at an IPO, or we could look at the sale of the company.
“I've been very pro-oriented to an IPO as opposed to a sale. Chaparral has been my baby from the start. I would like to see it continue to be a large player in the Mid-Continent and in Oklahoma.”