Jay Paul McWilliams, a senior engineer in business development with Houston’s Linn Energy LLC, is a fourth-generation “oilfield kid.” His family traces its industry roots to his great, great uncle, Harry McWilliams, who in 1921 helped drill the first commercial well in the San Juan Basin.

McWilliams’ parents owned an oilfield services business, and the family lived in various towns in Colorado and Wyoming before settling in Farmington, New Mexico, when he was nine.

Early in his career, McWilliams worked "in the trenches," learning the nuts and bolts of drilling and production. During college, he interned for Burlington Resources in the San Juan Basin. After graduating from New Mexico Tech in Socorro with a bachelor’s degree in chemical engineering, he joined Burlington as a production engineer and later worked as a drilling engineer. Today he sits on the industrial advisory board for the petroleum engineering department at his alma mater.

When ConocoPhillips acquired Burlington in 2006, McWilliams embarked on the next step in his quest to diversify his expertise. He joined start-up, private-equity backed Resolute Energy Corp., Denver, as lead operations engineer, overseeing the company’s McElmo Creek and Ratherford fields in the greater Aneth Unit, in Utah’s Paradox Basin, while also performing reservoir engineering analysis on properties. The assets, which Resolute had recently acquired from ExxonMobil Corp., represented two-thirds of Resolute’s production. The job offered McWilliams the experience of working for a start-up with a great management team and exposure to secondary and tertiary recovery operations.

During his stint at Resolute, McWilliams earned an MBA from Duke University via its Cross Continent program. When he was offered a job as an acquisitions engineer with Linn Energy, where he knew most of the principals from his Burlington days, he took it.

Today, nearly a year into his position with Linn, McWilliams spends the bulk of his time performing technical analysis to value deals and determine if they are a good fit for the limited liability company structure, which is similar to a master limited partnership. Linn’s goal is to close at least half a billion dollars in acquisitions annually for the next several years. In 2009 McWilliams worked on more than $200 million in completed deals. "I just had to jump in and get to work," he says.

Investor: What’s allowed Linn to remain so busy despite the downturn?

McWilliams: Linn has a strong balance sheet, diversified asset base and attractive hedge positions, so we’re in a good position to make acquisitions. Returns to shareholders were more than 100% in 2009, we have really good access to capital, and plan to be very aggressive on the acquisition front through 2010.

Investor: What was the highlight of 2009 activity?

McWilliams: The acquisition highlight of 2009 was our strategic entry into the Permian Basin (Linn purchased Permian properties from Forest Oil for $118 million and agreed to purchase assets from another seller for $155 million). It’s a great fit for our business model and a key target area. We want to grow and expand our presence there.

An exciting, non-A&D project I’ve been involved in is evaluating our Granite Wash position. When some of those huge horizontal wells started coming online, we needed to evaluate what it could mean to Linn. We studied industry activity, evaluated wells drilled, and did statistical modeling to understand the trends and common characteristics among the big wells. The process involved financial modeling of the impact of different development scenarios on our acreage positions. We looked at how Granite Wash development could affect our financials companywide.

We got a feel for the robust nature of this asset. We’re starting a horizontal drilling program, and we have high expectations.

Investor: What do you like best about working in the energy industry?

McWilliams: There is never a dull moment. This past year was a good example. It wasn’t the brightest of times, and you never knew which direction the industry was going. You need to be able to turn on a dime.

I also enjoy the great learning opportunities the business offers. In my current role, the opportunity to sit in the board room with legends of the industry like Mike Linn, Mark Ellis, Kolja Rockov, Arden Walker and Curtis Newstrom, and listen to them evaluate deals, is a priceless education.

Investor :What’s your advice for young people starting out?

McWilliams: First, work for people you respect and admire. Second, be willing to do things no one else will do. The time I spent out on drilling rigs or in the middle of the desert in southeastern Utah did not involve luxurious assignments, but I’ll carry those experiences throughout my career. They will help in decision making and the ability to lead and manage.

Investor: Have you had a particular mentor?

McWilliams:I’ve had a range of mentors, from CEOs to pumpers to drillers on rigs. With every different assignment and position there’s been a great opportunity to learn from the vast experience in the industry.

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