|Date Published||August 31, 2014|
|Company||Stormhold Energy Ltd.|
|Article Author||Chadd Radke|
|Article Type||August 2014 Issue|
|Tags||Business Succsess, E&P, Entrepreneurial Spirit, Oil & Gas Industry, Start-up|
What makes Stormhold Energy different is that their door is always open, their phone is always on, and they always get back to the most important people in their company; not only our senior management team, but every single shareholder,â€ says President / CEO Chadd Radke.
It is this determination and unwavering commitment to having an honest and transparent business acumen that has taken Stormhold from just $362 CAD to having a projected worth of $3.46 billion dollars after 20 years by signing a very large Natural Gas supply contract.
The $120,000,000.00 contract will be used to drill 80 Horizontal wells that will fulfill the 200MMCF per day Natural Gas Contract for over 20 years which calculates to $182,000,000.00 in annual income and $3.46 B in 20 years.
When starting Stormhold, Radke surrounded himself with very experienced industry influencers, geologists, engineers, and scientists by bringing them on as senior consultants. Every single oneÂ of these individuals, including Radke himself, purchased shares in the company to demonstrate they all had a vested interest and belief in its success.
During Stormholdâ€™s first year, Radke and his team worked out of their homes to raise enough capital to purchase their first 125 sections of land. For the energy industry at this time, this stood out as most companies bonded together and refused to buy mineral rights from the Alberta government.
To this day, Radke continues to surround himself with industry influencers committed to these core values of Stormhold, and makes sure the company analyzed and audited by outside third party sources.
Stormhold has also helped demonstrate their leadership by raising 17 million dollars in all equity, while having absolutely no banking or institutional debt whatsoever, a feat which is very rare within the energy industry.
With Stormhold now being the largest private landholding company in East Central Alberta, this leadership and transparency mandate has guided how Radke intends to grow Stormhold. Having turned down over $50 million dollars in debt capital – â€œIâ€™m allergic to debt,â€ emphasizes Radke – the Stormhold team have raised all private equity through friends, their families, credited investors, and each team member. Radke continues to be completely honest and transparent as to what Stormhold is about and what they are prepared to do to increase their value to their shareholders. In fact, Radke welcomes all Shareholders to the office. They are encouraged to sit in on weekly team meetings and see firsthand what it takes to run an entrepreneurial start-up entity.
Uncompromising with how Stormhold conducts business and unwilling to damage its credibility, Radke will always put the interests of his shareholders first.
Yet, there is something more to his success than his transparent manner that has taken Radke and Stormhold to such growth in just five years. Itâ€™s his entrepreneurial spirit, determination, and ability to refuse to say â€˜noâ€™ that have him and his team believe in his plan that builds the company.
â€œItâ€™s not in my vocabulary to say â€˜this isnâ€™t going to succeed.â€ Itâ€™s never once come out of my mouth that Stormhold isnâ€™t going to be successful. After all this hard work, weâ€™ve done everything we can to move forward, and now finally looking at the releases weâ€™ve generated and the joint venture partnerships, itâ€™s taken five years.â€ A success that may have seemed slow, but truly is amazing.
â€œNinety-five percent of start-ups fail, and five percent are usually new entities that came about by companies like Suzanne Westâ€™s for example. Sheâ€™s done very well for herself. She steps outside of the box as well. She doesnâ€™t need to follow what I call â€˜the industry leadersâ€™, because they said so. Nor do I. Walking in the +15â€™s in Calgary, I hold my head high. Itâ€™s difficult to do business in Calgary when [companies] donâ€™t want you to succeed,â€ says Radke
Because of his dedication and commitment to his company and shareholders, Radke has been approached by a number of colleges in and outside of Alberta to mentor and answer how heâ€™s become a success while otherâ€™s want to see him stop succeeding. His answer, â€œA lot of blood, sweat, and tears is how you do it. A lot of torn relationships. Not only from a personal perspective, but from an industry perspective.â€