John W. Nichols, who is the co-founder of Devon Energy (NYSE: DVN), died recently. He was 93.

As should be no surprise, his life provides many lessons for budding entrepreneurs. Interestingly enough, his innovations were not necessarily about creating new products. Instead, he was an innovator of finance.

Nichols started his career as an accountant and audited the financials for oil companies. Leveraging this experience, he started an oil company in 1941. With sky-high income taxes, Nichols structured innovative financial vehicles to minimize the bite from Uncle Sam. For example, he was the first to register a public oil & gas drilling fund with the Securities and Exchange Commission.

And it was a hit -- he attracted large sums of capital from wealthy individuals (even Hollywood stars like Barbara Stanwick).

No doubt, Nichols biggest feat was the creation of Devon. He formed the venture in 1971 with the help of his son, a lawyer.

The financial innovation didn't stop as Nichols developed the so-called royalty fund, which became a standard in the oil industry.

It was also a big spur for growth. After all, Devon is today a $43 billion company.

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Edgar Online Guide to Decoding Financial Statements. He also operates MergerBook.com.