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Survey: Access to capital most important financial issue facing companies in 2014

Capital One Bank conducted a survey of conference attendees at NAPE International in Houston, TX. The survey, conducted on February 6-7, 2014, was developed to gauge the sentiment of the oil and gas industry in the coming year. Respondents included various professionals within the energy industry. Percentages are based on 106 responses.

Seventy three percent of respondents cited access to/cost of capital as the number one financial concern for companies in 2014.

With a response rate of 40%, increased regulation was cited most often as the biggest industry concern for 2014. Speaking at NAPE International February 5, former US Secretary of the Interior Ken Salazar noted that hydraulic fracturing is safe and that the key to sustaining the unconventional revolution is spreading the correct informaiton to the public.

Fifty-six percent of energy professionals surveyed by Capital One identified US energy independence as the industry trend likely to gain the most momentum this year. 

The survey revealed a positive outlook on oil and gas prices; two-thirds of respondents expect gas prices to remain steady or increase this year, and 71% anticipate similar stability for oil prices.

“This upbeat view of oil and gas prices goes hand in hand with the progress toward U.S. energy independence,” said Russ Johnson, head of Energy Investment Banking, Capital One Securities. “However, our survey data also revealed concerns over regulatory pressures and resistance to shale development, as well as access to capital. Our team of banking professionals is committed to providing our clients with tailored financing solutions to help them successfully navigate industry challenges and continue on a path towards growth.”

The pace of merger and acquisition activity is expected to pick up this year as well. Fifty-eight percent of the Capital One survey respondents expect M&A to increase in 2014, while 38% expect the level of M&A activity to stay the same as the prior year.

“The energy industry seems likely to see stepped-up M&A activity in 2014,” added Scott Joyce, managing director of Energy Origination, Capital One Bank and Capital One Securities. “As that activity continues in the year ahead, Capital One will continue to provide the support companies need to take advantage of opportunities that will strengthen their goals for growth and expansion.”

Find a PDF of all the results here.

 

 

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