Capital is flowing back into the E&P industry. More than half (56%) of chief financial officers report their ability to access capital, with credit either the same or better than last year. As well, fewer CFOs (48%) feel that a lack of capital has caused delays or terminations of certain oil and gas projects during the last 12 months.

This is according to a new study by accounting and consulting group BDO USA LLP, which examined the opinions of 100 CFOs at U.S. oil and gas E&Ps. The survey was conducted in November of 2010.

"2010 was a record year for oil and gas M&A activity," says Jim Westerman, partner in the natural resources industry practice at BDO. "With renewed access to capital, we're seeing companies aggressively pursuing the acquisition of new properties, technologies and other companies."

The new capital is also being deployed to recruit and retain top talent, the report shows. Approximately 95% of CFOs expect to maintain or increase the number of personnel employed by their company in 2011, and 90% expect their own compensation to remain the same or increase.

"CFOs are feeling more confident about the market and their ability to grow their companies," says Lance Froelich of the BDO compensation and benefits practice. "There is a renewed sense of security that is reflected by the uptick in CFO compensation and bonus predictions for 2011."

The survey's findings indicate that 28% of companies have or will have a salary increase budget for 2011. This represents more than double the figures from 2009, when only 12% of companies planned to increase salaries. And, for those companies that have a salary increase budget in place, 46% of companies expect those increases to be more than 3%, according to BDO.

Additionally, bonuses are on the rise, the firm notes. Forty-two percent of companies plan to pay bonuses for fiscal year 2010, of which 93% will be the same or larger than in the previous year.

"CFO respondents indicated that the 'say on pay' provisions in the Dodd-Frank legislation will not affect companies' compensation levels or structure," says Froelich. "This is likely because there has been a concerted effort in recent years to clean up compensation programs and eliminate poor practices."

On the non-traditional front, 36% of CFOs are increasing their capital investment in environmentally-friendly exploration and processing technologies, and 30% are increasing their investment in non-conventional areas, such as shale plays.

BDO's 2011 Energy Outlook Survey is a national telephone survey conducted by Market Measurement Inc., an independent market research consulting firm.