Right on tracts

Oil and gas SaaS platform based in Houston expands to Dallas amid major growth

Houston-based Tracts, which makes it easier for mineral buyers and E&P companies to find leads in the industry, is geared for major growth. Courtesy of Tracts

A Houston company has flipped the script on lead generation for mineral buying in the oil and gas industry. Tracts.co has developed a way to get its clients in front of mineral sellers they otherwise wouldn't know to approach.

"Right now, mineral buyers have one major bottleneck — it's consistent across companies except those using Tracts — and it's lead generation," says Ashley Gilmore, CEO and co-founder of the company.

Traditionally, mineral buyers or E&P companies would have to go through public records to source leads. But Tracts' customers have access to the company's title management platform, which uses a patented computation engine and an interpretation library. The process reduces the cost and time spent generating leads, as well as the risk associated with mineral ownership and exploration and production companies and mineral buyers, Gilmore says.

The company has been around since 2014, and began hitting its stride last year after beta testing and working out the structure of the technology. Now, the more customers Tracts has, the more data the system has, which translates to a more valuable platform.

"For some of our clients, Tracts is now existential for their business," Gilmore says. "In other words, they wouldn't be able to operate on their current business model without Tracts."

It's not only customer growth the company has seen. Tracts launched a land solutions group called TLS — Tracts Land Solutions — in the beginning of the year. That group is growing by a dollar amount of 30 percent month over month since January. Tracts also opened a Dallas office, which focused on this land solutions team, to keep up with clients.

"There were two people in Dallas working from home in January," Gilmore says. "Last month, we moved into a 12-person office, and now we've already outgrown it."

Tracts has a 16-person office it'll be moving into, and Gilmore says he expects to double that in the next month or so. Tract's Houston headquarters is around 10 people, and the company has its development team in Seattle. The technology, Gilmore adds, is able to be used throughout the country since it's cloud based.

All this growth is translating into some interesting developments for Tracts, but Gilmore isn't ready yet to announce anything.

"I think our clients are going to be very happy within the next three to six months," Gilmore says.

Tracts allows its clients to skip a few steps in the mineral buying process. Courtesy of Tracts

Sean Guerre of Innovate Energy joins the Houston Innovators Podcast to share how energy startups are especially challenged in the current climate. Photo courtesy of Innovate Energy

The oil and gas industry has been hit with a double whammy of challenges with COVID-19 and its imminent recession, but the global industry was already facing an oversupply of oil — and now an even smaller demand.

One of this confluence of obstacles' victims is going to be early-stage energy tech startups, Sean Guerre, managing director of Innovate Energy, says on this week's episode of the Houston Innovators Podcast.

"When you think about what's happening in the oil downturn, unfortunately it's just a slice in huge uncertainty sandwich that we're all having to go through right now," Guerre says.

Not only is the pandemic unprecedented, but the cyclical energy industry hasn't faced a situation with so much discrepancy between supply and demand since the 1930s, which is a bit too far back to really take in any lessons learned.

Energy tech startups that are pre-funding and pre-pilots are going to struggle to get a foot in the door at bigger companies and aren't going to find much funding — both venture capital and corporate venture are down, Guerre says. He recommends really focusing on messaging moving forward — startups need to pitch cost-saving and efficient solutions.

"You've got to make sure your message fits the market," Guerre says. "What was working four weeks ago is probably not what you're going forth with now."

Innovate Energy, which produces online content for the advancement of energy tech and innovation, has seen a rise in interest in digital and unmanned solutions like robotics and industrial virtual reality.

"We're seeing a huge interest in autonomous, unmanned solutions," Guerre says. "Anything in that remote, autonomous area that allows people to continue to do inspections, mapping, surveying, and all kinds of work that don't involve more people being involved in the process — we're seeing a real acceleration there."

Startups are also challenged with a lack of events and networking opportunities with the COVID-19 mandates to stay at home and social distance. Guerre, who founded Stone Fort Group to put on virtual and in-person programming, says it's a new burden on event holders to use technology to optimize their events for the happenstance and socialization that happens at in-person events.

"How do we actually help people connect who wouldn't normally would have connected if they hadn't been sitting next to each other in a general session or waiting in line at the coffee line," he says on the show.

Guerre shares his thoughts on the state of energy moving forward, and how key these virtual events are on the podcast. Listen to the full episode below — or wherever you get your podcasts — and subscribe for weekly episodes.