COMPANY HISTORY

In 1983, Kim Smith left Northern Natural Gas, an interstate pipeline in Omaha, Nebraska, to return to Texas and to participate in the new, recently deregulated gas industry which was cutting its eye teeth on a brand new concept to the industry -- competition. Kimball Energy Corporation participated in gathering projects in Texas and Louisiana, then in 1985, KEC and ITR Petroleum of Houston formed a Joint Venture called ITRP Kimball Gas Ventures to purchase, sell, transport and store natural gas in the Rocky Mountains and the Pacific Northwest.

KEC sold its interests in the Texas and Louisiana gathering systems and concentrated efforts on the Joint Venture. ITRP Kimball was among the first to deliver deregulated transportation gas to customers in the Pacific Northwest and was among the first to import and deliver Canadian gas to domestic gas users in the Pacific Northwest.

Kimball Energy sold its interest in ITRP in 1988 but has maintained its presence in the Rockies and Pacific Northwest which still remain the core areas of operations. From 1988 through 1999, KEC expanded operations into Chicago, California, the San Juan and Permian Basins, and intrastate Texas, and established offices in Los Angeles, Chicago, Denver and Colorado Springs. KEC also acquired equity gas reserves to complement its gas imported from Canada with domestic gas supplies.

With gas industry consolidations in recent years, Kimball has also consolidated its office and staff to Arlington, TX (between Fort Worth and Dallas) and has discontinued active marketing efforts to end users in Chicago. Our primary focus is providing gathering, marketing and risk management services to small and intermediate size gas producers and providing energy management, risk management and marketing/acquisition services to industrial customers, commercial customers and local distribution companies.