By Chad Watt, Hana Askren and Marlene Givant Star
Energy businesses and other companies based in the Houston area will experience minimal, not material delays, as Southeast Texas recovers from damage caused by Hurricane Harvey, according to industry executives and investment bankers.
The Houston area is corporate headquarters for Fortune 500 energy companies including Phillips 66, ConocoPhillips, Enterprise Products Partners, Plains GP Holdings, Halliburton, Kinder Morgan, Occidental Petroleum, EOG Resources, Apache Corp., and Anadarko Petroleum. It also is a major hub for energy supermajors ExxonMobil, Royal Dutch Shell and Chevron.
Most companies are still assessing the impact of the storm on their businesses, and that is a secondary priority to checking and helping people in their businesses who have been affected.
Kevin Boyle, CFO of Houston-based FloWorks, said Hurricane Harvey’s impact on the company has been very minor. FloWorks distributes specialty industrial pipe, valves, and fittings (“PVF”) and related technical solutions to the energy and industrial sectors.
“We were the first PVF to reopen. That put us in a strong strategic position,” he said. “This may end up turning into a positive, as unfortunate as that is.” He added that the company’s priority is to help its own employees who have been affected by the storm.
The company’s two large publicly traded competitors, MRC Global and Distribution NOW, are also headquartered in Houston, he noted.
An upstream energy investment banker said that large energy corporations have generally reported disruptions, but not damage to their operations in the Gulf of Mexico and South Texas oilfields. The biggest factor there again is people — making sure that employees have their personal needs in hand before focusing back to work, he said. Added the oil services executive: “It’s more about people trying to get their lives together.”