History

James A. Gibbs established Five States Energy Company in 1985 to expand the scale of his ongoing business of purchasing producing oil and gas properties. Before forming Five States, Gibbs operated his business as an independent oil and gas producer and consulting geologist. In addition to his exploration activities, Gibbs actively sought opportunities to purchase quality, long-life producing oil and gas properties.

The flow of properties onto the market expanded following 1983. At that point the oil industry boom, which had begun with the first oil shock in 1972, had run its course and the industry was heading into a recession. Companies that had predicated their business plans on the expectation of ever higher oil prices found that they were unable to meet their financial commitments and began to sell their assets. By combining his funds with those of investors who shared his goal Gibbs was able to continue his efforts to purchase high-quality, long-life producing oil and gas properties. In 1985, he formed the predecessor of Five States Energy Company L.L.C., of which he was the majority owner. Don Malouf, a long-time friend and attorney to Gibbs, and Arthur Budge, Jr., who was providing financial advisory services to Gibbs at the time, assisted in the formation of Five States and were minority owners. In the early years Gibbs served as President and Chairman, with Budge as Chief Financial Officer and Malouf as General Counsel.

In the succeeding years the industry has evolved such that the flow of producing oil and gas properties into the market has become sustained. Five States has continued to provide opportunities for investors to participate in the ownership of oil and gas assets. In 1995 the company was converted into a Texas limited liability company. In 1998, Budge became President and CEO. Gibbs continues to serve as Chairman.

The further development of our professional infrastructure created a new opportunity. Our TEAMS program was developed to provide management services to owners and trustees of non-operated oil and gas assets. Five States now offers those services as an adjunct to its core business of purchasing oil and gas production for its investors.