Beruflich Dokumente
Kultur Dokumente
Note: Results have not been adjusted for a divestiture at the end of 2001 and an acquisition at the beginning of 2005.
Harvard Business Publishing
Equity Net Equity LTM LTM Unlevered Asset Beta
Exploration & Production: Market Value Debt D/E Beta Revenue Earnings beta
Jackson Energy, Inc. 57,931 6,480 11.2% 0.89 18,512 4,981 0.27 0.834
Wide Palin Petroleum 46,089 39,375 85.4% 1.21 17,827 8,495 0.48 0.800
Corsicana Energy Corp. 42,263 6,442 15.2% 1.11 14,505 4,467 0.31 1.017
Worthington Petroleum 27,591 13,098 47.5% 1.39 12,820 3,506 0.27 1.082
Average 39.8% 1.15
0.933
Refining & Marketing:
Bexar Energy, Inc. 60,356 6,200 10.3% 1.70 160,708 9,560 1.601
Kirk Corp. 15,567 3,017 19.4% 0.94 67,751 1,713 0.842
White Point Energy 9,204 1,925 20.9% 1.78 31,682 1,402 1.582
Petrarch Fuel Services 2,460 (296) -12.0% 0.24 18,874 112 0.259
Arkana Petroleum Corp. 18,363 5,931 32.3% 1.25 49,117 3,353 1.047
Beaumont Energy, Inc. 32,662 6,743 20.6% 1.04 59,989 1,467 0.925
Dameron Fuel Services 48,796 24,525 50.3% 1.42 58,750 4,646 1.091
Average 20.3% 1.20
1.05
Midland Energy Resources 134,114 79,508 59.3% 1.25 251,003 18,888
#REF!
Table 1
Credit Debt/ Spread to
Business Segment: Rating Value Treasury D/V E/V D/E
Consolidated A+ 42.2% 1.62% 42.2% 57.8% 73.01%
Exploration & Production A+ 46.0% 1.60% 46.0% 54.0% 85.19%
Refining & Marketing BBB 31.0% 1.80% 31.0% 69.0% 44.93%
Petrochemicals AA- 40.0% 1.35% 40.0% 60.0% 66.67%
Table 2
Maturity: Rate:
1-Year 4.54%
10-Year 4.66%
30-Year 4.98%
Inputs
Tax rate 40% Exhibit 1
10 year treasury bond 4.66% Table 2, Rf
Spread to treasury
Consolidated 1.62% Table 1
E&P 1.60% Table 1
R&M 1.80% Table 1
Petro chemicals 1.35% Table 1
Beta (Equity) 1.25 Page 6
Risk premium for market 5% Page 6
Equity 134,114 Exhibit 5
Debt 79,508 Exhibit 5
Beta (firm) = Beta (Asset) [ 1+(D/E) (1-T)]
New Beta Rate
Equity Value WACC
(Equity) (equity)
108,900 188,408 1.33 11.29% 8.12%
93,336 172,844 1.41 11.72% 8.07%
176,970 256,479 1.33 11.33% 9.02%
119,263 198,771 0.61 7.72% 6.08%
From Exhibit 3
Assets weight
E&P 0.5340
R&M 0.3576
Petro chemicals 0.1084