Early Life and Education
Michael S. Smith was born in the Bronx, New York, in 1955. In the 1970s, he studied pre-med at Colorado State University, majoring in chemistry and minoring in mathematics. However, he dropped out to pursue other interests.
Rise to Success
Smith began his career in the oil and gas industry, founding Basin Exploration in 1981. He took the company public in 1992. In 2001, he sold Basin Exploration to Stone Energy for $428 million. This sale provided the capital for his later ventures.
In 2002, Smith founded Freeport LNG in Texas. Initially, the plan was to import LNG, but the shale gas boom prompted a strategic shift. Smith decided to build an export facility, a $14 billion project that became a significant success. The facility is the seventh largest in the world and the second largest in the U.S.. It has 3 trains that allow it to export a large amount of LNG. Smith secured long-term contracts with buyers in Asia and elsewhere.
Key Business Strategies
Smith's success is attributed to his ability to identify and capitalize on market trends. He recognized the growing global demand for LNG and the potential of U.S. shale gas. His early adoption of LNG export facilities positioned him favorably in the market. The creation of long-term contracts ensured a stable revenue stream, mitigating risk.
Philanthropy
Michael S. Smith is involved in philanthropic activities through the Michael S Smith Family Foundation. In 2020, he and his wife Iris donated $1 million to support Holtz Children's Hospital and frontline workers at Jackson Health System. The foundation has assets totaling $790,899 and funds initiatives in Boston and West Hollywood.