Board of Regents hires CEO for University Lands office

AUSTIN – As part of a long-term plan to better manage and protect University Lands – a precious resource that provides funding for University of Texas and Texas A&M institutions – the UT System Board of Regents authorized the hiring of the first chief executive officer of University Lands.

Mark A. Houser, president and CEO of EV Energy Partners, LP and executive vice president and chief operating officer of EnerVest, Ltd in Houston, will be stepping down from EVEP at the end of the month to become the CEO of the University Lands Office. He has more than 25 years of experience as an executive with oil and gas corporations.

University Lands, which comprises 2.1 million acres of land in West Texas, was established by the Texas Constitution in 1876 for the benefit of the UT and Texas A&M systems of higher education. Revenue from oil and gas leases on University Lands flows to the Permanent University Fund, an endowment that today is valued at $17.5 billion.

Recent advances in technology have dramatically improved the ability to recover oil and gas from reservoirs that previously were non-productive, said Regent Jeff Hildebrand, CEO of Hilcorp Energy Company, an independent oil and gas exploration and production company. As a result, gross production on University Lands has more than doubled since 2008, and revenue has tripled since 2010.

“The dynamic of University Lands has changed, and our management philosophy should change accordingly,” Hildebrand said. “We need a leader and expert in the field to ensure we are managing the land efficiently and getting the most value from University Lands for the benefit of UT and A&M students for generations to come.”

Houser will assume his new position with the UT System University Lands Office in March and will maintain an office in Houston.

“I am honored to have been selected as the first CEO of The University of Texas System University Lands Office,” Houser said. “It will be a privilege to work for an institution that serves as an extraordinary resource for the University of Texas and Texas A&M systems. This is a unique opportunity to directly utilize my industry leadership experience for the benefit of the Permanent University Fund and higher education in the state of Texas. I look forward to working with the University Lands Advisory Board, the Board of Regents and with industry partners to enhance this outstanding resource base for many years to come.”

Houser joined privately-held EnerVest in 1999 as the executive vice president and chief operating officer. EnerVest is one of the 25 largest oil and gas companies in the United States and has more than 1,300 employees, 5.5 million acres under lease and $10 billion in assets. EnerVest created EVEP in 2006 through an initial public offering.  Since its formation, Houser has served as president of EVEP and was named CEO in 2012. Prior to his tenure at EnerVest, Houser held executive leadership positions with Occidental Petroleum Corporation and Canadian Occidental Petroleum.

“The time is right to bring on an executive of Mark Houser’s caliber for this leadership role,” said Morris Foster, former president of ExxonMobil Production Co., a member of The Texas A&M University System Board of Regents and member of the University Lands Advisory Board. “His range of experience makes him a perfect steward for this vital resource that helps ensure excellence in educational opportunities for many thousands of students.”

The decision to hire a CEO was made following recommendations in 2013 from an informal advisory group of experts and Opportune, an energy management consulting firm hired by the UT System. Opportune was asked to review business practices and procedures in recognition of increased drilling activity and difficulties the University Lands office has had recruiting and retaining staff members because it competes with large oil and gas companies that can pay significantly higher salaries.

Opportune made several recommendations, including restructuring the leadership of the University Lands office and the hiring of several additional staff members to manage leases and business functions more effectively and efficiently. After Houser joins the University Lands Office, he will play a key role in hiring additional staff to bring needed expertise, said Scott Kelley, Ed.D., executive vice chancellor for business affairs at the UT System.

“We expect a significant return on an investment in leadership and additional staff in the University Lands office, and that return will directly benefit UT and A&M institutions,” Kelley said.

About The University of Texas System

Educating students, providing care for patients, conducting groundbreaking research and serving the needs of Texans and the nation for more than 130 years, The University of Texas System is one of the largest public university systems in the United States, with nine academic universities, six health institutions and an enrollment of more than 214,000. The UT System confers more than one-third of the state’s undergraduate degrees, educates two-thirds of the state’s health care professionals annually and accounts for almost 70 percent of all research funds awarded to public universities in Texas. The UT System has an annual operating budget of $15.6 billion (FY 2015) including $3 billion in sponsored programs funded by federal, state, local and private sources. With about 90,000 employees, the UT System is one of the largest employers in the state.