I hope Devon left some extra room in the U-Haul!
In what is not in any way a sign the local economy is about to tank and the OKC renaissance is officially over, Expand Energy – the Oil Overlord house formerly known as Chesapeake – announced Monday morning that it is following Devon’s lead and relocating its corporate headquarters to Houston, Texas.
But don’t worry.
Just like every other company that leaves one city for another, Expand wants us to know everything is fine. Most of the people who live and work in OKC will stay in OKC. It’s only the executives who don’t want to pay state income taxes who are moving to Texas.
Well, at least that’s what the company promised.
Via The Oklahoman:
Expand Energy is set to follow Devon Energy in moving its headquarters to Houston.
The company, previously known as Chesapeake Energy, however, is promising to leave its full local workforce of 500 in Oklahoma City, while the number of surviving Devon employees is not yet known.
In a press release shared Monday morning, the company announced the relocation will primarily focus on the executive leadership team with the goal of strengthening Expand Energy’s relationships with key industry and commercial partners.
See! Nothing to worry about! Even though history, logic, and common sense tell us the writing is on the wall and the company will eventually uproot most of its corporate operations to its new corporate home, this time it will be different because the company promised.
If you’re a tad skeptical of an energy company’s promises, don’t worry — you’re normal. If you do believe them, though, you should probably schedule a CAT scan because you have something in common with Kevin Stitt:
“I am grateful that homegrown companies like Expand Energy have pledged to keep a significant workforce and operational presence in Oklahoma,” said Governor Stitt. “We must continue to get government out of the way and make Oklahoma the best place for business.
“I have consistently called for the establishment of business courts to give businesses assurance that conflict will be navigated efficiently and fairly. I’ve also pushed for a more business-friendly tax system that will attract more businesses to our state. With smart adjustments, we can be more competitive at every stage of business – from founders and innovators to the headquarters of major industries.”
Yep, the guy whose crowning business achievement as governor is getting CANOO to move here says there’s nothing to worry about, which I guess means we should all hit the streets in panic.
Obviously, two big energy companies leaving OKC for the no-state-income-tax energy utopia of Houston now has everyone panicking about which company will be next. Like celebrity deaths and local restaurant closings, these things always happen in threes, right?
Fortunately, The Oklahoman caught up with our city’s lone ruling Oil Overlord – Harold Hamm of House Continental. Not too far removed from fleeing his hometown of Enid for the bright lights of OKC, he assured us he’s not going anywhere…
Harold Hamm says Continental Resources will stay in OKC as rivals move to Houston
Harold Hamm is not on board with Oklahoma City’s largest oil and gas companies moving to Houston and is “committed” to not making a similar move…
But with the announcement last week that Devon Energy is moving its headquarters to Houston — and yet another announced move to Houston on Monday by Expand Energy — Hamm’s Continental Resources is likely to soon end up being the last major local energy company standing.
“I made up my mind that I was born and raised in Oklahoma, I am an Oklahoman, and I’m going to continue to be an Oklahoman,” Hamm said. “And we’re not going anywhere.”
Yep, Continental is safe because Hamm was born and raised in Oklahoma and is going to continue to be an Oklahoman. Well, at least for a little while. He is 80 years old! Who knows what will happen to the company when he dies an Oklahoman.
Anyway, with two major employers bailing on OKC in less than a week, it’ll be interesting to see how the state political ecosystem responds – and by “interesting,” I mean depressingly predictable.
Even though neither company cited taxes or regulation as the reason for leaving, don’t be surprised if the oil industry and its well-lubricated allies at the Capitol suddenly decide this is proof Oklahoma needs to slash gross production taxes, further weaken regulations, and roll out a fresh round of corporate giveaways. You know — just in case another energy industry CEO is cruising Houston Zillow listings late at night.
When and as that happens, we’ll let you know.
Stay with The Lost Ogle. We’ll keep you advised.
