Conway MacKenzie was engaged to assist a private equity owned natural gas focused exploration and production company. Various factors reduced the company’s revenue which, together with increased capital costs associated with its drilling program, resulted in a liquidity crunch for the company.
At the time of our engagement, the company’s finance department was dealing with a lack of skilled resources and was faced with the need to raise capital, manage cash liquidity, forecast multiple operating scenarios and complete an already delayed annual audit.
Conway MacKenzie’s highly experienced industry professionals provided inflection with the following value-added services: Chief Accounting Officer and financial analyst, key process management, diligence coordination, weekly cash forecasting and management, scenario modeling, business plan development and budgeting, and accounting/finance process improvements.
- Executed amended and restated credit facility which added two more banks to the group, increased the borrowing base by $60 million and amended certain covenants
- Raised $225 million of preferred equity from an energy-focused investment firm
- Developed 2015 budget and operating plan in an uncertain natural gas price environment
- Developed 3-year forecast model which allowed for planning under multiple different price, production and operating scenarios
- Developed detailed 13-week cash flow model which greatly improved visibility to liquidity and allowed for improved cash management
- Completed the annual audit under tight deadlines and issued audited financial statements to the banks in time to close amended and restated credit facility
- Implemented enhanced budget, forecasting, financial and operational reporting and accounts payable processes, while significantly improving communication between the finance, accounting, operations and land functions