Enron Gas Services (294-076)

Tufano, Peter (1994) Enron Gas Services (294-076). [Case]

Abstract

The CEO of Enron Gas Services (EGS), a subsidiary of the largest U.S. integrated natural gas firm, considers the risks and opportunities of selling a variety of natural gas derivatives, both embedded in gas delivery contracts and as free-standing financial contracts. In its three years of existence, EGS had been successful by offering buyers and sellers of natural gas a variety of innovative pricing contracts. In order to mitigate the risks of having mismatch between its commitments to buy and sell gas, EGS established a system to decompose all of its commitments into a handful of different risks of exposures. Its centralized risk-management group not only measures the firm's exposures but also enters into financial contracts to offset the exposure brought about by the firm's business activities.

Item Type: Case
Keywords: finance, accounting, financial marketing
Subject(s): Finance
Date Deposited: 01 Apr 2016 13:01
Last Modified: 01 Apr 2016 13:01
Funders: n/a
URI: http://eureka.sbs.ox.ac.uk/id/eprint/6048

Actions (login required)

Edit View Edit View