Arctic Slope Regional Corp.: delivering benefits to shareholders.

• Author: Kalytiak, Tracy
• Position: SPECIAL SECTION: ALASKA BUSINESS MONTHLY'S 2011 CORPORATE 100

Close to 39 years ago, Arctic Slope Regional Corp. sprang into being, formed to oversee 5 million North Slope acres the Alaska Native Claims Settlement Act bequeathed on the Inupiat people, as well as generate wealth and jobs for the corporation's 3,800 shareholders.

Its early decision to form joint ventures with experienced business partners, learn from those "tutor" partners, and then buy them out and create wholly owned subsidiaries developed into a fruitful pattern for ASRC, which diversified from oil and oil-related construction into energy services, petroleum refining and marketing, construction, government services and resource development. Now, Barrow-based ASRC has 11,000 shareholders on its rolls.

"It's important for people to keep in mind that when they see ASRC as a $2.3 billion company, there was a time during our humble beginnings when our leaders worked for no pay," said Rex A. Rock Sr., ASRC's president and chief executive officer. "Only through hard work and long-term planning are we where we are today. We live by our mission of actively managing our businesses, our lands and resources, our investments and our relationships to enhance Inupiaq cultural and economic freedom with continuity, responsibility and integrity."

PROVIDING VITAL BENEFITS

In its history, ASRC has paid out more than $483 million to its shareholders in the form of direct dividends and, since 2000, ASRC has distributed more than $90 million in earnings to support a wide range of socio-economic programs for those living in its region.

With continuing uncertainty in the economic environment. Rock said. it's more important than ever to maintain a long-term vision that enables ASRC to provide vital benefits for its 11,000 Inupiat shareholders and make the best use of its lands, which contain oil and gas, coal and base metal sulfides. Known resource reserves on ASRC land include the Alpine oilfield and the Western Arctic coalfields.

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BUSINESS MODEL

ASRC's pattern of partnering with and learning from established businesses evolved as the corporation gained experience. It acquired Houston Contracting Co. and created Natchiq Inc., a holding company for oilfield service and construction companies that included Alaska Petroleum Contractors, GSL Oilfield Service, Entech and VRCA Environmental Services. That move ignited growth that doubled ASRC's revenue between 1985 and 1989. 1990 was a banner year for ASRC--revenues climbed 94 percent and the...