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Finance Chiefs of Oil and Gas Companies Optimistic About Access to Capital

Finance Chiefs of Oil and Gas Companies Optimistic About Access to Capital

In the latest sign that many top executives around the country are confident in their business prospects for 2012, a recent survey suggests finance chiefs of oil and gas companies are optimistic about their ability to access capital next year.

According to this year's survey, which was released recently by accounting and consulting organization BDO USA, there was a 260 percent increase in CFOs who said they were feeling "much better" about their ability to access capital next year. Additionally, only 10 percent of those surveyed said access to capital would be their most significant financial challenge in 2012, a drop from 22 percent last year.

Charles Dewhurst, a partner and practice leader with the Natural Resources industry group at BDO, said in a release that the confidence expressed by these finance chiefs has had a trickle-down effect for investors.

"Confidence in the ability to access capital has grown steadily over the past year, allowing management teams to advance discovery and development plans," said Dewhurst. "This confidence has led to a notable uptick in investor interest, particularly with private equity investment in the oil and gas industry."

Still, while the survey paints a more positive picture in terms of capital access outlook for oil and gas finance chiefs heading into 2012, these executives still expressed concern over potential legislative changes and political turmoil.

A total of 51 percent of CFOs surveyed said they believed these legislative changes would play the biggest role in limiting growth within the industry next year, while 38 percent cited the changes as the biggest financial obstacle they will face.

Specifically, 29 percent of respondents said partisan politics were the top political concern for 2012, while the budget deficit and tax proposals for the energy industry were also listed as concerns, the survey noted.

In terms of compensation, 47 percent of CFOs said they expected their own packages to increase in 2012, compared to just 20 percent from last year.

The results of the survey come amid significant executive changes for many oil and gas companies. Offshore oil and gas drilling contractor Noble Corp., for instance, recently appointed a new CFO, controller and senior vice president, The Associated Press reported. 

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