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  • January 2014
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Newfield Energy

By: William E. Fruhan and Wei Wang
  • Format:Print
  • | Language:English
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Abstract

In September 2013, Miles Griffin, CEO and chairman of the board of Newfield Energy, prepares to present financial proposals to the board of directors for approval. Newfield (based in Houston, Texas) was a large independent energy company primarily engaged in the exploration, development, and production of crude oil, natural gas, and natural gas liquids. It had experienced declines in earnings and cash flows in recent years because of the decline of natural gas prices and asset write-downs. The proposals to the board, prepared by the CFO, included (1) a press release outlining that the company was planning to divest several natural gas projects immediately, probably at significant book losses; (2) a significant reduction of common stock dividends; and (3) an exchange offer under which the company would exchange up to 20% of its common stocks into newly issued preferred stocks. Griffin was concerned that the breadth and complexity of the proposals might cause investors to worry. This case is ideal for use in first- or second-year MBA courses in corporate finance or capital markets or in a finance course for advanced undergraduates.

Citation

Fruhan, William E., and Wei Wang. "Newfield Energy." Harvard Business School Brief Case 914-541, January 2014.
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About The Author

William E. Fruhan

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Related Work

    • January 2014
    • Faculty Research

    Newfield Energy (Brief Case)

    By: William E. Fruhan and Wei Wang
    • January 2014
    • Faculty Research

    Newfield Energy, Spreadsheet for Students (Brief Case)

    By: William E. Fruhan and Wei Wang
    • January 2014
    • Faculty Research

    Newfield Energy, Spreadsheet for Instructors (Brief Case)

    By: William E. Fruhan and Wei Wang
Related Work
  • Newfield Energy (Brief Case) By: William E. Fruhan and Wei Wang
  • Newfield Energy, Spreadsheet for Students (Brief Case) By: William E. Fruhan and Wei Wang
  • Newfield Energy, Spreadsheet for Instructors (Brief Case) By: William E. Fruhan and Wei Wang
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