“Chesapeake Energy Cuts Capital Budget, Production Outlook”, Wall Street Journal, March 24, 2015
Chesapeake lowered its 2015 capital budget by not less than 10%. In addition, it sharply reduced its production outlook and became the largest energy company to do so responding to reduced prices of oil (Beilfuss 1). In relation to the chapter, capital budgeting involves the process in which the management decides the productive areas for investments. Capital expenditure consists of a remarkable quantity of money and, therefore, crucial to the achievement of the firm’s strategic plans. The company analyzed its profitability in the long run and therefore decided to take the most appropriate decision of cutting down the Continue reading...