A view from the top
Energy directors reflect on the state of the oil and
gas industry and discuss how to make a difference in the boardroom
Three directors
Steve Finley, Henry Houston and James Crump at the Petroleum Club, looking out across the Houston skyline.
James Crump and Henry Houston met in Chicago in July 1962. As members of the same audit entry class, they spent a month together kicking off professional careers that would take them to leadership positions in the energy field. Houston spent seven years at PwC and went on to serve as controller, chief financial officer, president and director for businesses such as C&K Petroleum, KP Explorations, Black Hawk Oil Company and Southdown, Inc. Crump remained with PwC, where he eventually became the first chair of the firm’s global energy practice.
Although their career paths diverged, today, both men are active on the boards of directors for companies in the oil and gas sector. In January, they reconnected at PwC’s Energy Board Network Roundtable, where they joined other directors to discuss how board members can provide guidance to energy companies in a volatile economy.
Steve Finley, another PwC alumnus who serves on a board with Crump, has participated with Crump and Houston in other roundtable events. Finley joined PwC in 1975 and then went on to join oilfield services company Baker Hughes Inc. During his 24-year career there, he was a financial manager at several of the company’s operating divisions, vice president and controller, and eventually senior vice president of finance and administration and CFO. Recently, the three colleagues sat down with Keyword magazine to discuss their experience as board members and their insights into the energy sector.
In addition to their PwC background, the men share some notable common bonds. Each has a long history working in the oil and gas industry in the Houston, Texas, area. And all agree that their experience and the relationships they built were significant factors that led to their current board positions. For example, Houston, with his extensive industry background, was approached four years ago to join the board of startup Rosetta Resources, an exploration and production company focused on domestic natural gas.
“They were looking for someone to be audit committee chairman, and my background in accounting and finance was a natural fit,” he explained. “The opportunity came to me through a personal acquaintance. I had been the CFO of a public company run by the father of one of the principals at Rosetta. He called and asked if I would do it.” Houston recently gave up leadership of the audit committee and is now non-executive chairman of the board.
Houston’s recruitment experience rings true for Finley, who serves on the boards of two public companies—Newpark Resources, primarily a drilling fluids company, and Exterran
Houston understands that the relationships he has built in the past offer him opportunities in the future .
Partners, L.P., a master limited partnership in natural gas compression—as well as the privately held Total Safety, which provides safety products and services to refineries and upstream oil and gas drilling contractors. Referrals from business contacts led to all three positions. The Newpark Resources opportunity came about when a member of that board called a former CEO who had worked with Finley and asked him to recommend someone with audit and finance experience. With Exterran, an investment banker Finley knew made the recommendation.
Crump also serves on Exterran’s board. He was referred to that company by a co-director from another board on which he serves, Copano Energy, a midstream gas services company. “One of the interesting things about being on a board with James is the way we often see things the same way,” Finley related. “I believe that’s because of the PwC training and audit methodology we share.”
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