TITLE: MW Petroleum Corporation: A Valuation Approach on Real Assets ABSTRACTOR SUMMARY Valuation is the estimation of an asset’s value‚ whether real or financial‚ based on variables perceived to be related to future investment returns‚ on comparison with similar assets‚ or‚ when relevant‚ on estimates of immediate liquidation proceeds (Pinto‚ Henry‚ Robinson‚ Stowe; 2010). Correct valuation of real assets can present challenges to financial analysts. Different models can be used to arrive at
Premium Discounted cash flow Investment
3. Differences between APV and option valuation Valuing MW Acquisition by using APV method assumes in practice that exploiting of all MW’s reserves is certain and happens right after the acquisition. In other words‚ the APV method excludes the flexibility in future decision making. In this case‚ Apache has both an option to defer the exploiting of reserves into future and Apache may also choose not to exploit the MW reserves at all. As some of MW’s reserves are actually real options‚ the APV valuation
Premium Discounted cash flow Option Net present value
Cash Flow Valuation – Proved Developed Reserves Discounted Cash Flow Valuation – Proved Undeveloped Reserves Discounted Cash Flow Valuation – Probable Reserves Discounted Cash Flow Valuation – Possible Reserves Question 3 To value MW Petroleum we would consider the assets in place and the option bearing assets discretely. The assets in place consist of the proved developed reserves since they are already producing a determinable quantity of oil and natural gas‚ as well as the non-producing
Premium Discounted cash flow Free cash flow Net present value
Draft MW Petroleum Corporation (A) Background: In late 1990‚ the group of Amoco Corporation and Apache Corporation had begun talking regarding the possible acquisition of MW Petroleum from Amoco to Apache. MW Petroleum Corporation is a wholly owned subsidiary of Amoco Corporation which has its own reserves‚ management team and with full ownership in geologic and engineering data. MW Petroleum‚ a free-standing exploration company that was even as large as some of independent oil companies. It
Premium Standard Oil Petroleum John D. Rockefeller
MW Petroleum Corporation Situation Overview: Amoco Corporation conducted an extensive review of its cost structure and profitability‚ leading to major restructurings to better focus on its core businesses. The result of this was a divestment of the middle section of its assets along the marginal curve. Thus‚ creating MW Petroleum Corporation – a new‚ free-standing exploration and production oil and gas company. MW was offered to a number of targeted international petroleum concerns‚ but the most
Premium Discounted cash flow Oil reserves
MW Petroleum Corporation (A) 1. Structure and execute a DCF valuation of all the MW reserves using APV. How much are the reserves worth? Is your estimate more likely to be biased high or low? What are the sources of bias? Answer: The DCF valuation of all the MW reserves using APV indicates that the net worth of the portfolio is around $516.30 million. The estimate is more likely to be biased on the higher side. REVENUES: The data for the projections was collected by Morgan
Premium Option Natural gas Investment
VINAND PETROLEUM CASE Financial statements could be examined with varied degrees‚ as part of the client acceptance procedures Paige CPA got to perform a horizontal and vertical analysis‚ and financial ratio analysis of Vinand Petroleum financial statements. These procedures are not as in depth as other procedures used by auditors on financial statements‚ but these procedures may show areas of concern for auditors. From 2006 to 2007‚ Vinand’s long term debt tripled and its interest expense paid for
Premium Financial audit Audit Auditing
Microwave Transmission Basics Microwave Transmission Basics Table of Contents • MW Advantages • MW Frequency bands • MW Link elements • Antenna Radiation Pattern • MW Alarms Microwave Transmission Basics Features Advantages Rapid Deployment – A microwave link can be installed in as little as one day No right-of-way issues – Radio spans all obstacles such as roads‚ railways‚ etc.‚ avoiding any requirement to seek permissions that inevitably are costly and introduce time delays
Premium Electromagnetic radiation Antenna Radio
Petroleum is an oily‚ thick flammable liquid‚ a mixture of various solid‚ liquid and gaseous hydrocarbons. Hydrocarbons are molecules that comprise of Hydrogen and Carbon. Petroleum is the general term for "unprocessed" crude oil. It is present beneath the Earth’s surface (Lithosphere) and forms when trapped‚ decomposed dead organisms buried in the sedimentary rock‚ and are heated under the immense pressure of new sedimentary layers over time (fossil fuel). The heat and pressure distilled the organic
Premium Petroleum
|Name: |Date: | Graded Assignment Containing Communism (50 points) |Score | | | 1. Choose one aspect of the Cold War you have studied—the Truman Doctrine‚ the Marshall Plan‚ the Restructuring of Japan‚ the Korean War‚ the Hungarian Revolution‚ or the Berlin Wall. Decide whether or not the events related to that
Premium Cold War