Devon Energy Produces Oil and Natural Gas in the United States

A graduate of the University of Texas School of Law in Austin, Texas, Duke Ligon spent much of his career in Oklahoma City, Oklahoma, where he served as an attorney to several businesses in the energy industry. In 2007, Duke Ligon retired from his position of 10 years as senior vice president and general counsel to Devon Energy in Oklahoma City, Oklahoma.

Founded in 1971, Devon Energy operates from its Oklahoma headquarters and manages oil and natural gas properties located in four different states: Oklahoma, Texas, New Mexico, and Wyoming. Specifically, the resources originate from oil fields in the Anadarko Basin, Eagle Ford, the Delaware Basin, and the Powder River Basin.

The company estimates that it produces 140,000 barrels of oil, 575 million cubic feet of natural gas, and 80,000 barrels of liquid natural gas daily.

As a Fortune 500 company traded on the New York Stock Exchange, Devon Energy aims to create value for shareholders. The company also incorporates safe and environmentally sound practices to protect employees, contractors, and suppliers, while also preserving the land it manages.

Understanding Net Mineral Acres in the Oil and Gas Industry

Duke Ligon, Oklahoma City

The former Senior Vice President and General Counsel at Devon Energy in Oklahoma City, Duke Ligon now manages operations at Mekusukey Oil Company in Wewoka, approximately one hour east of Oklahoma City, as chief executive officer. Prior to launching an energy sector career that has spanned five decades, Duke Ligon studied law at the University of Texas Law School.

Mekusukey presides over an extensive portfolio of mineral interests, as well as gas and oil interests, that are acquired and managed by the company, as opposed to sold for profit. These interests includes 100,000 net mineral acres across 2.3 million gross acres in 25 states. In the oil and gas industry, net mineral acres is a term used to describe the total acreage controlled by the mineral owner compared to total gross acres comprising a specific tract of land. For instance, an individual or company entitled to 50 percent of the mineral interests mined from a 200 acre tract of land would be in possession of 100 net mineral acres.

Understanding the productivity and viability of the net mineral acres making up a portfolio is crucial to the success of oil and gas industry operators. For example, a company’s monthly cash flow is based on net mineral acres, which may be only a fraction of the valuation on gross mineral acres for a property. Furthermore, net mineral acreage is closely related to depth rights, which dictate how deep or shallow an operator must go before they have legal ownership over discovered minerals.

Duke Ligon Joins Peter J. Solomon Company as Senior Advisor

 

Duke Ligon
Image: pjsc.com

Oklahoma City resident Duke Ligon has led operations at the Mekusukey Oil Company since establishing the private mineral investment firm nearly five decades ago. In addition to his work at the Oklahoma City company, Duke Ligon recently joined the Peter J. Solomon Company as senior advisor.

The announcement of Mr. Ligon joining the Peter J. Solomon Company was initially made by chief executive officer Marc S. Cooper. Speaking in the fall of 2017, Mr. Cooper described the company’s new senior advisor as an experienced industry veteran, citing his work on countless corporate and advisory boards in both the non-profit or for-profit sectors, and as a longtime friend and partner to various members of the Peter J. Solomon energy group.

As senior advisor, Duke Ligon will be tasked primarily with furthering the investment banking advisory firm’s strategic advisory services, which have been developed specifically for the benefit of chief executive officers, members of senior management teams, and individuals in other business leadership and ownership positions.

KBH Center for Energy, Law, and Business Reports on U.S. Energy Use

 

KBH Energy Center
Image: kbhenergycenter.utexas.edu

An Oklahoma City-based investment executive, Duke Ligon founded the Mekusukey Oil Company, a private mineral investment firm. In addition to his business, Duke Ligon serves as co-chair of the Kay Bailey Hutchison (KBH) Center for Energy, Law, and Business.

According to a recent KBH report, the United States currently gets only 10 percent of its energy from renewable sources. Fossil fuels, which are the main driver of greenhouse gas emissions, still dominate our energy use. About 36 percent of US energy is derived from petroleum, 29 percent from natural gas, and 16 percent from coal. The last 9 percent comes from nuclear sources.

When looking at just renewable energy, nearly half of renewable energy production comes from biomass, while one-quarter comes from hydroelectric, and 19 percent comes from wind. Solar currently only makes up roughly 6 percent of energy production, and geothermal just 2 percent. The KBH report notes that future regulatory changes may impact the quantity of energy production from each source.