History

Roy G. Hildreth, Sr. founded his family enterprise as a farming business which evolved into the oil and gas well servicing proprietorship it is today. By 1953, having brought his son, Roy G. Hildreth Jr. into the business, the firm was known as Roy G. Hildreth & Son, Inc.  They owned one pick-up and one flat bed truck.

From there, the operation expanded and by 1970 it had about 125 oil and gas wells, more equipment, and well-equipment shop buildings with several employees.

The third generation, Roy Jr.'s son, Jon R. Hildreth and daughter Karen H. Gregg, completed college and entered into the business in 1974 and 1976.  The youngest child, Melinda H. Mann, entered the business thereafter. Roy Sr. passed away in 1975.

In 1976, the well servicing and drilling entity was incorporated as Roy G. Hildreth & Son, Inc.  In 1979, the family formed a partnership known as Kimco, to complement the corporation by developing acreage, drilling, and buying leasehold estates. Hildreth Supply Company was established in 1983 and established a substantial retail supply outlet which services the industry in the several counties in central West Virginia, as well as providing supplies used in the operation of the family's servicing and production companies.

Megan Oil & Gas Company, Inc., was formed in early 1985 to facilitate the purchase of another oil and gas company.  This purchase was the largest addition yet made to the family business in acreage and reserves.  The family contracted to purchase these oil and gas assets, including over 200 wells, some 7,000 acres of leasehold, and over 150 miles of pipeline, as well as a 200-customer gas utility company, in March, 1985.  The production in this field was substantial and the potential was even greater, but the physical assets, including pipelines, tanks, pump jacks, and well reads, were in a general state of deterioration and neglect.

In April, 1985, the sellers breached their agreement to transfer title to these assets and the Hildreths filed suit.  During the litigation the Hildreth family was in the position of operating the new company, making necessary repairs and enhancing the oil and gas production, all without income, for 19 months.  The income was frozen in the litigation.  Fortunately, our strong financial structure enabled us to meet this challenge.

The litigation was settled in 1986, upon terms highly favorable to the Hildreths and we now have clear title to operate this field productively.  Having moved past the cash flow difficulties caused by the litigation, the Hildreth family has already, since January, 1987, improved its accounts payable schedules and are now back in the prompt payment status that has been our hallmark for over 30 years.

The results of the litigation were well worth the hardship.  Geological research has been performed on these newly acquired properties by two major oil production companies.  Both of them have approached us with substantial offers either to buy these holdings or to pursue development of these leases through partnership or joint venture.

In all, we hold by production about 23,000 acres of leasehold estate on which we operate some 500 wells.  Our financial statements are based on an average four-year production period.  We have not attempted to fix a value on reserves, as there is a large amount of underdeveloped acreage.

The Hildreth family has taken pride in its excellent credit rating for over 40 years and our assets bear no liens. Our continuing success has been bolstered by a good working relationship with our banks.