Commentary by David Preng, Founder and President of Preng & Associates
Full article on Oil & Gas Financial Journal
AS MY PARTNERS AND I at Preng & Associates complete our 35th year, we are reminded again of the extreme cyclicality of the oil and gas industry. My view is biased. I have spent my entire career in the oil and gas industry. My sons and daughter work in the oil and gas business. We know the challenges that executives and boards face every day to generate cash flow and net income to build their businesses.
Our clients are energy executives and boards. They repeatedly tell us their most important asset is people: employees, colleagues, peers, and partners. Their biggest challenge is not finding the next Marcellus or Wolfcamp or creating the newest completion technology that unlocks millions of barrels. It’s finding and retaining the right people who are motivated and talented enough to make the organization better.
In the boardroom, our clients seek diverse views to get deeper consensus on critical issues facing executives as the complexity of the energy business increases. Executives running 21st century oil and gas companies instinctively know they need, and quite frankly want, more experience in the C-suite and the board room to make better decisions. They have embraced the idea that the long-term success and ultimately the highest value of the company will only be achieved through diversity of skills and thought and incorporating ideas of inclusion to arrive at the right decision. A balanced board brings different perspectives, backgrounds, skill sets and experiences – all of which should help the company make better decisions.