San Antonio, TX (June 5, 2014) – Managing Partner, Jason Ferguson, sat down with the San Antonio Business Journal to answer questions regarding expansion into the Eagle Ford Shale region.
Calvetti Ferguson, one of Houston’s fastest-growing energy accounting firms, this week opened a San Antonio office to keep pace with booming activity around South Texas’ Eagle Ford Shale.
While the office currently operates with a skeleton staff, it’s expected to grow to 25 employees within the next three years, and the company is now scouting for a permanent space in the Alamo City.
Jason Ferguson, Calvetti Ferguson’s managing partner, says San Antonio’s expanding oil-and-gas operations have created big demand for energy-specific accounting services.
Talk a little about your decision to open a San Antonio office. Why is it important for an accounting firm to be near the shale play?
As private equity firms and companies continue to invest into the Eagle Ford Shale, they are setting up offices in San Antonio. San Antonio is the closest major city, so therefore it is a natural destination for middle-market companies operating in the Eagle Ford to put their headquarters. (Oil and gas companies) want to work with advisors, including their accounting firm, who understand the oil and gas industry. They also want to be able to meet with them without driving three hours.
Why is it important for oil and gas companies to have an accounting firm that specializes in the energy industry?
There is some unique technical accounting and tax issues to the energy industry that an advisor must understand. Companies also do not want to have to train their advisor about their business. These two factors cause an energy company to desire to work with a firm that is focused on the energy industry.
What’s the biggest misconception folks have about the economic expansion going on in South Texas because of the Eagle Ford Shale?
That it will last forever. When an oil and gas boom is new to an area, the money flows into that region at a very rapid pace. It is very easy to enjoy that success and not reinvest a portion of that money into other industries in the region. If an area wants to have long-term expansion, they must do a good job diversifying their industry while they have the investment capital, public attention and momentum. A region must not forget that the fields in their area will be fully developed at some point, then most of the money being spent will move on to the next oil and gas play. The boom never lasts forever.
Read the full article here.