Credit Capacity is Top Financial Concern of Energy CFOsLocation: Chicago According to a new study by BDO Seidman, LLP, 57 percent of chief financial officers (CFOs) at U.S. oil and gas exploration and production companies say that “credit capacity restraints, including access to capital” will be their greatest financial challenge in 2009, followed by “falling oil or natural gas prices” (21%). Nearly three-quarters (72%) expect the economic crisis in the U.S. to impact their ability to borrow money or extend bank debt in 2009. In the past 12 months, only 26 percent of respondents had oil or gas exploration projects significantly delayed or terminated. Among those who did, 80 percent stated “lack of capital to fund project” as a reason. “Energy companies have remained relatively unscathed by the downturn this year and continued with record profits. However, a storm front is gathering for 2009,” said Charles Dewhurst, a partner and National Energy Industry Practice Leader at BDO Seidman, LLP. “The survey was conducted as oil prices and demand continued to drop – and this volatility, combined with the state of the economy – has energy companies treading more cautiously.” These findings are from the BDO Seidman Natural Resources 2009 Outlook Survey which examined the opinions of 100 chief financial officers at U.S. oil and gas exploration and production companies. The survey was conducted in October and November of 2008. Some of the major findings of BDO Seidman Natural Resources 2009 Outlook Survey of CFOs include:
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