|Oklahoma Inc.: What determines rankings
|By Don Mecoy Business Editor firstname.lastname@example.org
This year's Oklahoma Inc. rankings reflect the changing economy, particularly a rebound in the state's energy industry prompted by higher prices.
This is the 21st year The Oklahoman has worked with S&P Capital IQ to compile numbers using a system aimed at evaluating profitable growth.
Oklahoma's publicly traded companies provide a variety of goods and services. They make tissue paper and hamburgers, they build massive air conditioning units and pipelines, they offer payroll software and banking services, they make chemicals used by farmers and industries and sell children's books.
And they find and produce oil and natural gas. They do a lot of that, and this year's rankings show last year's energy activity was a lot more profitable.
Our companies are ranked on three measures, and the methodology rewards companies that grow quickly, increase profitability and benefit shareholders. Those with the best composite score of the three rankings rise to the top.
Generally, it's difficult for a company to excel in all three categories. That certainly was the case this year, when only one company — Enable Midstream Partners LP — finished in the top 10 in all three categories.
Last year, five of our top six companies managed that achievement.
Another unusual circumstance this year was a tie at the top, where Tulsa's Williams Cos. Inc. and Enable had the same composite score. We also had 12 companies land in the top 10 when three firms — Devon Energy Corp., BancFirst Corp. and Blueknight Energy Partners — tied for 10th place.
We figured if the Big 12 Conference can have 10 teams, our top 10 can include 12 companies.
The task to assemble Oklahoma Inc. began earlier this year when Standard & Poor's gathered the financial data that all publicly held companies in Oklahoma regularly file with regulators. The data are compiled for each company's two most recent fiscal years.
To measure growth, S&P ranked each company according to how quickly its revenues grew in the year ending June 30.
To gauge profitability, each company was ranked according to its percentage change in earnings per share over the 12-month period.
The Oklahoma Inc. rankings also consider how companies rewarded shareholders over the year, ranking changes in share price, including dividends.
Eight of the top 10 ranked companies were energy firms. While energy dominates Oklahoma's publicly traded companies, this year's results show how stronger oil prices boosted the fortunes of that sector.
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|Nov 14, 2017