20-Ovintiv CEO Brendan McCracken and PSP CEO Tracee Bentley on Energy, Leadership & the Future of the Permian Basin

Speaker A: Welcome to the Permian Strategic Partnership Podcast. I'm your host, Christa Escamilla. Hello, everyone. Welcome back to the Permian Strategic Partnership Podcast. We are so grateful that you're spending some time with us today, and we are definitely in for a treat today. We are live on, um, location in Denver, Colorado. And we are here Today with Brendan McCracken. He is the CEO and president of the of Oventiv. And we are also joined once again by Tracy Bentley, the CEO and president of the Permian Strategic Partnership. Thank you so much for your time today and how exciting to be live on, uh, location here in your office. This is great.

Speaker B: Yeah, absolutely. Krista, we're happy to host you and Tracy here today and excited for the discussion.

Speaker A: Fantastic. And Tracy, great to see you, as always.

Speaker C: You too. It's great to be here.

Speaker A: Well, wonderful. Let's get things started. Let's, you know, first just kind of find out a little bit about your journey, Brendan. And, um, because we know you don't just land in a CEO office like this overnight, tell us a little bit about your journey.

Speaker B: Yeah, well, uh, first off, really pleased to be here. We are enthusiastic, uh, members of the Permian Strategic Partnership. We love the mission of making our community better. Um, and so, personally, how did I wind up here? Uh, I'm a farm kid from Canada, which feels like a long ways from West Texas. But, um, I think in a lot of ways, some real shared experience and values that has made me feel a real affinity, uh, for the region and the basin. Um, I, uh, grew up in Great Lakes region, so kind of halfway between Toronto and Detroit. Think about it. Um, family farm business. Uh, had a cow calf operation when I was a kid. Um, dad got out of that when I went to college, strangely enough. And then we're grow corn, soybeans and wheat, and we're ag producers. Um, and so grew up in that family farm environment, you know, around a business, really getting interested in the commercial and technical aspects of agriculture. Um, wound up doing engineering school and found my way into the oil and gas business. And, uh, you know, saw a real parallel between oil and gas and agriculture. A lot of overlaps. If, um, you think about the world today, there's kind of really nothing more important than our food and energy supply. Kind of underpins every community, uh, across the world. And so really excited about having had a kind of toe in both of those things. And, um, have had a strong and long relationship with the Permian, too. I first came to Midland in the 90s. Um, was working on, um, an early stage CO2 flood. And the Permian was the place for CO2 flooding globally. And so spent a bunch of time, uh, in the permian in the 90s. And then, you know, have found my way back here with the, with the shale revolution.

Speaker A: You mentioned parallels, and I was thinking when you said that, I thought being a hard worker definitely is a parallel there, that the oil, gas and agriculture tie together.

Speaker B: Absolutely. I think, you know, the mentorship and leadership example that is set in both of those, uh, communities by leaders and how hard you need to work to be successful in both of those businesses makes total sense.

Speaker C: So, Brendan, going back to psp, um, what led Oventiv, uh, to want to become a part of the Permian Strategic Partnership?

Speaker B: Yeah, I mean, it was an easy, uh, yes. Um, but when we think about how we want to show up in community and where we live and work, we want to, uh, be part of addressing fundamental needs in the communities that we live and work in. And we want to be part of durable, uh, solutions, you know, not just be in and out, be part of something that's going to last. And, you know, the Permian Strategic Partnership really hits on both of those things. If you think about what we're doing around roads and the safety of moving around the basin, we think about what we're doing in education and health care. Those are the fundamental needs of the community, and we're doing it in a lasting way. I think it's been six years, um, uh, or so that the PSP has been up and running. And, you know, look, I think this is 60 years, uh, on the future. So I'm really excited about how it ties to both of those values and how we want to be part of the communities that we live and work in.

Speaker A: You mentioned that you have over 300 employees here in the Permian, or when I say here in the Permian base, everyone listening is probably in the Permian and beyond. But out of, you know, those 300 members, I know you care what their quality of life is about and psp, that is their main focus. What has been some memorable, uh, connections and partnerships that you've seen come out of you being involved with psp.

Speaker B: Yeah, it's hard to pick just a couple even. But, um, you know, for us, safety is a big deal. We spend a lot of time thinking about the safety culture that we're building in the company. We think a lot about how do we keep everybody that comes to our work site safe and getting home at the end of the day. And one of the pieces that's been really important for us has been what we've done with roads. And, you know, in our business and in our daily lives, uh, outside of work, driving's probably the most dangerous thing we do. Um, and unfortunately, driving in the Permian is a dangerous proposition sometimes. And so we've worked really closely, um, with PSP and TxDOT and New Mexico dot to really try and improve the driving safety experience for everybody in the Basin. Not just, um, our team and the folks working for us, but for everybody in the community. And that's everything from redesigning intersections to be safer, just fundamentally re engineering them to be safer. Um, some of the things we're doing with road safety and response, um, you know, the HERO team's been a big win for us. And then, you know, we've been able to get the departments of transportation to commit real dollars to improving the road infrastructure over a long period of time and billions of dollars, really. So that road safety piece has been, um, a really important one to us. Um, and then the other one that is, uh, really near and dear to us is the education piece. Um, and I could go on about health care, too, but I think fundamentally nothing is more important in our society than the ability to educate our youth in a great way. Um, and I would say we've made a lot of progress, but we're still unsatisfied, um, with where the quality of education and seats that are available for folks in the community. And you mentioned our staff. And so, of course, we care deeply about our staff having great quality seats for their team, but we actually think it's our obligation and duty to, you know, the Basin is giving a lot to us, and this is something we really should give back, is ensure that the Permian Basin is one of the best places to educate your kids in the country. And that's not the case today. So we've got our work cut out for us, but we're absolutely determined to get there.

Speaker A: And I'm sure Tracy can also agree. She's seen the hero truck out and about. I just saw it the other day helping someone. I love seeing the partnerships in action on the roads and seeing those safer roadways.

Speaker C: We've had hero trucks on our roads now for, I think, uh, only like, six months. And our communities are saying we don't know what we did without them.

Speaker A: Right.

Speaker C: It's amazing.

Speaker A: You called a friend and hoped they could come pick you up.

Speaker C: Right?

Speaker A: And now, now we have an instant friend that will always pick us up or come help us change that tire. With HERO program, I Love that.

Speaker C: Uh, Brendan, along the lines of what you were just saying, we've had a great six, uh, seven years. Um, looking ahead, what are you most looking forward to, or what would you like to see PSP really lean into?

Speaker B: Yeah, I think I'm going to go right back to the education place. And in our business, one of the things we track as a metric and, you know, from your board members, Tracy, we're all pretty metric focus. We're pretty focused on making sure we're getting the results that we want. And one of the things we track a lot is something we call pace setters. So every time we drill a well or complete a well, um, we want to be setting a new pacesetter, and then we want to take those pacesetters and make them our average well, you know, a few quarters from now. So it's just a constant, continuous improvement cycle. And when I think about that same mentality applied in the, um, in the education space, the great news is we have some pacesetters to work off of to know what's possible. And we've talked a lot about the Mississippi miracle, where if you go back over a decade, you know, Mississippi's education performance was at or near the bottom nationally. And now fast forward, um, to today, 10 years later, they've moved into the upper half of performance nationally. So we know it's possible, um, which is what pacesetters are all about, is telling the team and everybody, hey, uh, is there a reason why those folks over there are doing better than we are? I don't think so. We can do just as well. We have no reason to believe we can't. And so that's what I'm excited about, looking forward, is the prospect of continuing to lean in here, partner with the school districts, partner with our charter schools, partner with teachers and the administration, uh, and really push this thing in a pace and trajectory into a totally different spot.

Speaker C: I love that I'm going to start using that term pacesetters.

Speaker A: Pacesetters. It is a good one. And you're definitely one of them. Yes, I love that. Let's talk a little bit about you, um, and just. We're going to get a little personal here. Brendan, tell us one or two things about you that we would not know by reading your amazing bio.

Speaker B: Yeah, I think, um, look, there's, um, a real focus on, uh, community and family. Um, and I love that about, um, doing business in the Permian. It is an exceptional community in so many different ways. And one of the places that we really see that and Feel that is that connection between family and business. Um, so I think one of the things we're really excited about, um, that maybe is a little under the radar screen today is something we're doing in Midland with uh, an organization called Classroom Champions. And Classroom Champions is a not for profit that takes um, Olympic athletes that are still in competition and pairs them up for a year long program with an elementary school class.

Speaker A: And I haven't heard of that before.

Speaker B: And what we really love about the program is it's proactive. So so much of what we do to help our communities is reactive and that's great. Um, but Classroom Champions is in there on the front end getting after social, emotional learning before um, kids have had a challenge or before they know how to deal with hardship. And so we love it because you take uh, this Olympic athlete then who doesn't love uh, being connected to and learning about the story of somebody who's the very best in the world at what they do. Um, and they work with the kids on a ah, year long program of resilience and grit and goal setting. And this is how I deal with setbacks and injury and I didn't perform the way I wanted to at this competition. This is how that made me feel and this is what I did in response to that. Tell me about how that works in your life. It's a really um, engaging program. And we just had our athlete, um, Macy, who's a bobsledder, um, at the Rusk Elementary School in Midland just a couple weeks ago. Um, and so Macy's incredible. She builds a rapport with the kids that's like nothing you've ever seen and gets them really excited and jazzed about how they can set goals and, and um, be perseverant and resilient through what life always throws at us.

Speaker A: I love that because I don't know about y', all but when um, you know, when we're telling our own children that it doesn't always resonate.

Speaker B: It's way better than you.

Speaker A: When an Olympic athlete tells them those things that hits. That's so fantastic. And I'm sure that you've already thought about this, but just throwing out there. Bryce Hoppel is from Midland, Texas.

Speaker B: Exactly. We're working on it.

Speaker A: Is involved in that. If not, I will get give you his cell phone after this. Sorry Bryce. Uh, but I just think he is such a great role model for our community because uh, I love to see those kids faces light up when they do see someone that has been to the same school has gone to the same whataburger as them, um, has gone to the, you know, the same park and grown up. That. So I. Or just that path. And it gives them the chance and opportunity to dream big. And I think that is so huge. Yeah, I love that. And how did, how did that partnership come to be with people?

Speaker B: Yeah, this goes back to our sort of community based approach of finding fundamental needs that we want to work on and long term partnerships. So we've had classroom champions in schools across our operating area for over a decade. Um, ah. And, um, you know, I think it was a couple podcasts ago, Tracy was talking about how Secretary Evans was always challenging her to dream big. And, and really that's what Olympic athletes do for kids is they set, you know, they set an example that the kids then, once they get to know the athlete, becomes much more attainable. Um, not that they're necessarily going to go be a bobsledder or a track athlete in the Olympics, but they can set their eyes on a horizon that they might not have reached for beforehand, um, which is really exciting.

Speaker C: Brendan, who was that person for you growing up? Who did you really look up to and, um, really aspire to be?

Speaker B: Like, yeah, I mean, I love, uh, being a protege. Uh, I love having cultivating mentors. And so I've been really blessed to have many of those people in my life. Um, but really, I would say it started with my mom and dad, um, and you know, growing up in that farm business, um, you know, I was that kid that was always sort of hanging around the peripheral of the adult conversation. And in our family, all the important business decisions got made at the kitchen table. And so, you know, dialogue between my mom and my dad and my grandparents. And um, so I just kind of soaked that up and really sort of tried to unpack, like, ooh, this feels like a really big, complicated, stressful decision they're facing. How are they unpacking it? What's their decision process? How are they living with the choices and then executing on the plan from there? So when I started working as an undergrad or, uh, after my undergrad, I kind of craved that same kitchen table. How do I get back to that and understand what's driving the organization? Why are we making the choices we make? And it's what I love about sitting around your board, Tracy, is you get that again inside look into, you know, how does a Jack Harper think, um, you know, how does a Clay Gaspar think about, um, you know, making the decisions to be, to be helpful in our community? And I Just love seeing some of that unfold.

Speaker C: I do, too. Our boardroom is unlike anything else I've ever seen or witnessed before. And you're right. Having that many leaders all, uh, discussing the next move or the best decision to make is. It's amazing.

Speaker B: Yeah. You can't help but be better yourself. Exactly where the level is and have to challenge yourself to, like, oh, I gotta play at the level that Secretary Evans is thinking at and be more strategic. So, yeah, love it.

Speaker A: Oh, to be a fly on the wall in one of those meetings. I would just love to sit in the back row.

Speaker C: I don't care.

Speaker B: We'll sneak you in there.

Speaker A: That would be so much fun. Um, you mentioned your parents and grandparents. Was there ever a piece of advice that really kind of helped shape you and that you could share with us today?

Speaker B: Yeah, I don't know if there's, like, a specific thing, but, um, I did have one, um, of my longtime bosses, uh, that I worked for for many years in the company, and I started with Ovintebeza, summer student, uh, in the 90s. So I. I've kind of been through the whole ride here. Ken Waits from Mew Bern. Uh, you know, he's been with Mew Bern for, I think, close to 40 years. And he said, if you've been with a company that long, you either are really stubborn and resilient or you can't find a job somewhere else.

Speaker A: We're going to go with resilience. I think you're resilient.

Speaker B: Combination of the two. But, um. But one of my longtime leaders was a guy named Mike McAllister, and he retired a number of years ago as our chief operating officer. And his big mantra was, eat everything on your plate. And when you're new, um, that's going to be a lot of broccoli and maybe some asparagus, and you work your way up to the triple A cut, um, over time, but eat everything on your plate.

Speaker A: Plate.

Speaker B: And I think that's a just a good life lesson.

Speaker A: Very good.

Speaker C: I love that.

Speaker A: I do, too. I love that. Thank you for sharing. Talking about sharing, uh, share the vision for Oventiv. Where do you see your company going over the next 30, 40 years?

Speaker B: Yeah, well, I mean, first off, Permian is a big part of that. You know, we've spent the last five years really simplifying our portfolio, and we've simplified it down to now two places, um, and very much purposefully. And so that's the Permian and a play we call the Montney in Canada. Um, and we think they're the two best oil resources in the world. Um, and so our vision is to be a leader in those two places. Um, we call it a Permian Montney powerhouse. And, um, we're really excited about how we've constructed and molded the company over the last number of years and, uh, really set ourselves up for, for long term success. Um, one of the things that we really think about in the Permian is it's the big leagues. You know, if you're, um, a baseball player as a kid, you want to see if you can hit a major league fastball. You know, if you're a skier, you want to see if you can ski Corbett's Couloir in Jackson Hole. If you're a surfer, you want to know if you. Can you surf Pipe and in Hawaii,

Speaker A: if you're a golfer, can you play Augusta?

Speaker B: Yeah. Can you get on? Can you get on in Augusta?

Speaker A: Can you get on?

Speaker B: Yeah. And so, and if you're an oil and gas company, can you hack it in the Permian? You know, can you be a leader in the Permian? Because it is the best of the best. Um, and so I'm super proud of our team. You know, we've, I think on many leaderboards moved ourselves into that, that status. And we have incredible competitors that we do battle with every day to try and one up each other. But we love that part of being in the big leagues.

Speaker A: I love that. And that's what I love about psp. It's community over competition. Yes, there's still competition, but it is

Speaker B: an incredible blend community.

Speaker A: Uh, is there any advice that you would like to give to. We have a very young demographic in Midland and in West Texas right now, the median age 30, uh, more 0 to 4 year olds than ever before. Is there any advice that you would give to someone that's maybe starting their career? Not that you've, you know, we're not, we're not. You're experienced. Yeah, I was going to say you've been in a long time, but you're. With your experience.

Speaker B: I don't know how that happened. At some point, I wasn't the young guy anymore.

Speaker A: It's like it happens overnight, right? You wake up one day and you're like, what happened?

Speaker B: You know, I think I'm going to say two things. One is like, very tactical and I think important for the PSP mission. Um, and then the other is perhaps maybe a little more, um, what you're asking. But I'll start with the tactical piece. And the first one is get engaged. You know, this is a community that gives back what you put into it. Um, and one of the really most important but yet simple ways to be engaged is to vote. Um, not just in the general, but also in the primaries. Um, and you know, we need great leaders, uh, across the whole fabric of the community. And, um, it's incumbent upon all of us to get engaged. Um, and the most important engagement is to, is to vote. And you know, we have no view on how to vote. We just want you to vote. Um, and so I know that Tracy's got a big effort this year on get out the vote. And so we're going to be there trying to encourage that. But that's the first tactical piece and then the second piece is really around. Um, you know, when you're, when you're younger, you think that the system is sort of just running and you're just the small piece in it and you're kind of floating along and the reality is you actually have a lot more control, uh, and input and impact than you realize. Um, and so we love. I just kicked off our, uh, summer interns yesterday, um, at Oventiv. We had the whole group together and I got to do sort of the opening address. And that's what I tell them is, look, you're, you know, you might think you're just a summer intern here, but you're going to have real impact on us. You're going to make real decisions, you're going to allocate real dollars. You're going to make, uh, outcomes happen or not happen. So, um, you know, embrace that, um, and don't be afraid to make mistakes and be bold.

Speaker A: Love that. Great advice.

Speaker C: Love it. Brendan, um, you and your role on the PSP board, um, I just can't thank you enough. You inspire us and me and my team every day. And you have the very best team in the Permian. Um, I get to work with a lot of people, but you have an incredible team.

Speaker B: Thank you, Tracy. And look, it's a two way street. We love you and your team are inspiring to us and keep us fueled and ready to go. So, yeah, glad to be part of it.

Speaker A: And as an outsider looking in, as just a resident of West Texas, I thank you both for what you do because it really is amazing to see what has transpired over the past six, uh, and a half, seven years. I remember I met Traci her first week in Midland and we were just talking about what this was going to be. And at the time it was just a lot of it was Just big, you know, big dreams and goals. And to see so many of those come to fruition has truly been wonderful for our community. So, uh, thank you for your partnership. Thank you for all that you do. And we encourage everyone to go on the website and read more about what Permian Strategic Partnership is doing and all the amazing members like Oventiv, because, uh, once you start reading the list of things that you've done, you think, wow, none of that would be here to this day if it wasn't for this partnership. And, uh, shout out Secretary Don Evans for really, for beginning this all those years ago. So thank you both. Is there anything in closing we haven't talked about today, Brendan, that you're like, oh, I really hope that we got to talk about that, that we didn't mention it. Anything?

Speaker C: No.

Speaker B: Uh, I'm good. I feel like we've. We've covered all the bases. Yeah. Thanks, Krista. And thanks, Tracy.

Speaker A: Well, thank you both. We appreciate you. This has been a wonderful conversation. We, uh, wish you continued success and can't wait to see, uh, all your goals and dreams for your company and for your partnership with PSP come true.

Speaker B: Super.

Speaker A: And Tracy, as always, wonderful to spend time with you.

Speaker C: Thank you.

Speaker A: Thank you for all you and your team do. That is it for now. We do encourage you to pass this on to someone that is, uh, involved in the Permian loves the Permian wants to move to the Permian is involved in oil and gas. We want to keep the good news going of the Permian Strategic Partnership and all the good things happening in West Texas and New Mexico. And we, of course, want to hear from you. Follow on social media. You can find Permian Strategic Partnership on social media and the website. We would love to hear from you and any goals or dreams that you have. So let's, um, remember we are all in this together. And the future truly does lie in the Permian. Thanks so much for joining us. We will see you next time. You make it a great day, Sam.