Clayton Williams Energy, Inc.
Client: Clayton Williams Energy, Inc., Midland, Texas
Line of Business: Oil and Gas
Client Contact: Michael L. Pollard, Vice President of Accounting
Oil, gas explorer finds Weaver’s SOX 404 expertise impressive
Headquartered in Midland, Texas, Clayton Williams Energy, Inc. is an independent exploration and production company that develops and produces oil and natural gas. Named for founder Clayton W. Williams—who has over 50 years experience in the energy industry—the company operates primarily in Texas, Louisiana and New Mexico.
In 2004, management engaged Weaver LLP to serve as consultants to provide the company assistance in evaluating the effectiveness of internal controls. The engagement was to help ensure the requirements of Section 404 of the Sarbanes-Oxley Act of 2002 (SOX 404) were met, explains Michael L. Pollard, Vice President of Accounting at Clayton Williams Energy (CWEI).
“Prior to engaging Weaver, we used another Dallas consulting firm for one year to kick-off our SOX 404 evaluation. We used this firm primarily because the key consultant was a former oil industry colleague,” Pollard recalls.
When the advisor left that firm, Pollard and his team decided to take a broader look for SOX 404 help. “Our Audit Committee’s financial expert recommended Weaver, as he had worked with them in his capacity as a CPA in Abilene,” he says.
Pollard and colleague Janet Hamilton, the Accounting Manager at CWEI who oversees the company’s in-house SOX 404 activities, evaluated potential consultants on four key criteria:
• Knowledge of and experience in SOX 404;
• Well-trained, competent staff;
• Highly-regarded reputation within the industry; and
• Satisfactory fee structure.
Weaver’s Advisory Services Executive Partner Alyssa Martin and Partner Bruce Zaret impressed Pollard and Hamilton with their understanding of SOX 404 concepts and standards, says Pollard. He subsequently hired the firm to provide review of internal controls and to work closely with his internal accounting staff to develop documentation and test financial processes.
“In addition to assisting management with SOX 404 review procedures, we have also called upon Weaver’s team for separate engagements, including expense report consulting and periodic networks scans to assist our IT Department in evaluation of security and Microsoft updates,” Pollard adds.
“Due to the nature of the engagement, we are able to use Weaver as an internal control/internal audit resource without compromising independence,” he continues. “They work very well with KPMG, our independent accountants.”
Pollard also appreciates the Weaver team’s excellent quality of work, responsiveness and level of expertise. Although he has noted some minor turnover in staffing, he reports that this has not resulted in any problems. “In other areas that are important to us—such as the ability to work with our staff, courtesy and teamwork—everyone at Weaver is excellent,” he adds.
“Weaver has a great reputation and is recognized as a quality accounting firm,” Pollard concludes. “We are very pleased with the level of service we derive from the Weaver team.”
Michael L. Pollard
Vice President of Accounting
Clayton Williams Energy, Inc.
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