In September 2013, Miles Griffin, CEO and chairman of the board of Newfield Energy, prepares to present the board of directors for acceptance with monetary propositions. Newfield (based in Houston, Texas) was a large independent energy company engaged in developing, exploring and production of crude oil, natural gas and liquidated gas. It had experienced declines in cash flows and earnings in the past few years due to the decline of asset write downs and natural gas costs.
Newfield Energy Case Study Solution
The propositions to the board, prepared by the CFO, contained (1) the company was planning to disposes itself from several natural gas projects, probably at significant book losses; (2) a considerable decrease of common stock dividends; and (3) an exchange offer under which the business would swap up to 20% of its common stocks into just issued preferred stocks. Griffin was concerned the breadth and intricacy of the proposals might cause investors to worry. This case could be discussed by teachers in first or second year MBA or finance courses in undergraduate level.
PUBLICATION DATE: February 25, 2014 PRODUCT #: 914541-PDF-ENG
This is just an excerpt. This case is about FINANCE & ACCOUNTING
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