Professional Documents
Culture Documents
8.03%
0.82
5.70%
12.70%
From Exhibit 7
Aggregate MW Projections
Production:
Net Crude and Condensates (MB)
Net Gas (MMCF)
Casf Flows (in Millions):
Revenues-Oil
Revenues-Gas
Total Revenues
Direct Production Taxes
Direct Operating Expense
Overhead
Fin. Book DD&A
Net Income Before Taxes
Federal and state income taxes:
Current
Deferred
Total Income Taxes
Profit Contribution
Non-Cash charges
Cash from Operations
Capital Expenditures
Free Cash Flow
Terminal Value
Total
PV
Total PV
Interest tax shields:
Assumed coupon on debt
Assumed initial debt
Year 1 interest
Tax rate
Year 1 tax shield
Assumed cost of debt
Growth rate (= g of op cash flow)
Value of tax shield (perpetuity)
Value of "Additional assets"
Total value of MW
10.0
50.2
9.8
49.5
8.9
43.7
8.1
37.5
7.1
31.8
6.5
28.1
6.5
26.2
6.6
24.4
6.4
21.6
203.9
100.3
304.2
210.9
106.3
317.2
202.3
104.7
307.0
190.3
97.9
288.2
183.0
90.3
273.3
176.1
85.4
261.5
184.5
84.0
268.5
194.4
80.0
274.4
197.5
77.2
274.7
27.5
81.7
36.6
71.4
87.0
28.5
83.5
38.7
60.0
106.5
27.3
84.1
36.3
49.6
109.7
25.5
85.9
33.6
45.7
97.5
24.1
89.7
31.0
37.0
91.5
23.0
92.2
28.8
30.2
87.3
24.1
93.7
29.2
31.6
89.9
25.0
97.0
29.3
28.9
94.2
25.4
93.3
27.9
23.0
105.1
41.2
(9.3)
31.9
59.6
27.7
87.3
34.1
37.4
(7.0)
30.4
56.9
23.3
80.2
9.4
39.5
(7.9)
31.6
58.3
23.6
81.9
1.9
39.9
(7.1)
32.8
61.4
21.8
83.2
2.6
40.7
(4.9)
35.8
69.3
18.1
87.4
2.0
54.2
57.6
55.3
48.3
(23.8) (19.4) (15.8) (13.2)
30.4
38.2
39.5
35.1
56.6
68.3
70.2
62.4
47.6
40.6
33.8
32.4
104.2 108.9 104.0
94.8
42.6
33.8
41.8
57.5
61.6
75.1
62.2
37.3
53.2
70.8
80.0
80.6
85.4
61.6
54.7
481.9
75.1
59.1
62.2
43.4
37.3
23.1
53.2
29.3
70.8
34.5
80.0
34.6
80.6
31.0
85.4
29.1
14.50%
300.0
43.5
36%
15.7
12.00%
-4.06%
97.5
25.0
604.4
ns except as noted)
10
11
12
13
14
15
5.8
18.3
5.2
15.9
4.6
13.1
4.3
11.8
3.8
10.2
3.4
9.3
190.2
73.4
263.6
182.7
70.0
252.7
173.2
62.8
236.0
167.7
58.1
225.8
161.7
56.1
217.8
151.3
53.5
204.8
24.3
93.2
26.3
19.2
100.6
22.5
82.6
23.2
18.0
106.4
21.5
82.0
21.4
15.7
95.4
20.4
82.0
20.1
13.8
89.5
19.4
81.5
19.1
12.3
85.5
18.4
80.6
17.8
11.0
77.0
29.8
(1.8)
28.0
49.0
9.3
58.3
0.2
39.4
(4.1)
35.3
65.3
15.1
80.4
3.9
40.9
(3.7)
37.2
69.2
14.3
83.5
11.0
38.8
(3.2)
35.6
59.8
12.5
72.3
0.0
34.2
(2.6)
31.6
57.9
11.3
69.2
0.6
32.8
(2.0)
30.8
54.7
10.4
65.1
1.1
76.5
72.5
72.3
68.6
64.0
76.5
23.1
72.5
19.5
72.3
17.2
68.6
14.5
64.0
12.0
58.1
283.1
341.2
56.7
based on Exhibit 3
Proved Developed Reserves: Production and cash Flow Projections ($ millions except as noted)
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
Production
Crude and condensates (MB)
Gas (MMCF)
9.4
45.3
8.1
36.8
7.1
29.5
6.3
25.0
5.3
21.7
4.5
18.6
3.7
16.5
2.9
14.9
2.4
12.8
2.2
11.3
1.9
10.3
192.0
90.5
282.5
180.4
82.1
262.5
168.2
73.5
241.7
154.5
67.8
222.3
139.4
64.1
203.5
124.5
59.2
183.7
109.1
56.7
165.8
94.7
54.2
148.9
82.7
50.4
133.1
75.7
47.6
123.3
72.0
45.8
117.8
25.5
79.9
33.9
58.0
85.2
23.6
80.3
32.2
45.2
81.2
21.6
79.8
28.6
35.6
76.1
19.9
78.9
25.9
29.1
68.5
18.0
76.0
23.0
23.8
62.7
16.2
71.0
20.4
19.1
57.0
14.4
63.8
18.3
19.6
49.7
12.7
56.1
16.1
16.6
47.4
11.4
49.9
13.9
13.3
44.6
10.5
48.2
12.6
10.7
41.3
9.8
45.5
10.8
9.0
42.7
48.5
(19.1)
29.4
55.8
38.9
94.7
5.4
44.4
(15.2)
29.2
52.0
30.1
82.1
2.0
39.3
(11.8)
27.5
48.6
23.7
72.3
2.7
34.1
(9.5)
24.6
43.9
19.6
63.5
0.5
29.9
(7.7)
22.2
40.5
16.1
56.6
0.6
25.9
(5.9)
20.0
37.0
13.2
50.2
0.8
23.6
(6.2)
17.4
32.3
13.5
45.8
0.8
21.5
(5.1)
16.4
31.0
11.5
42.5
0.6
19.3
(3.9)
15.4
29.2
9.5
38.7
1.1
17.5
(3.1)
14.4
26.9
7.7
34.6
0.4
17.4
(2.5)
14.9
27.8
6.4
34.2
0.1
89.3
80.1
69.6
63.0
56.0
49.4
45.0
41.9
37.6
34.2
34.1
89.3
79.2
388.7
80.1
63.1
69.6
48.6
63.0
39.0
56.0
30.8
49.4
24.1
45.0
19.5
41.9
16.1
37.6
12.8
34.2
10.3
34.1
9.2
2002
2003
2004
2005
1.7
8.5
1.5
7.6
1.4
6.7
1.2
6.2
66.7
41.1
107.8
63.4
38.2
101.6
59.9
36.9
96.8
56.6
36.1
92.7
9.1
44.1
9.7
7.5
37.4
8.5
44.5
9.0
6.3
33.3
8.1
43.7
8.3
5.3
31.4
7.7
43.0
7.8
4.5
29.7
15.2
(2.2)
13.0
24.4
5.3
29.7
0.1
13.4
(1.8)
11.6
21.7
4.5
26.2
0.1
12.7
(1.4)
11.3
20.1
4.0
24.1
0.5
12.0
(1.2)
10.8
18.9
3.3
22.2
0.1
29.6
26.1
23.6
29.6
7.0
26.1
5.5
23.6
4.4
22.1
92.1
114.2
19.0
after Exhibit 4
Proved Undeveloped Reserves: Production and cash Flow Projections ($ millions except a
Production
Crude and condensates (MB)
Gas (MMCF)
0.3
1.7
0.6
4.9
0.5
5.6
0.5
3.3
0.5
2.3
0.5
2.0
6.0
3.4
9.4
14.0
11.3
25.3
12.9
14.5
27.4
11.8
9.1
20.9
12.3
6.7
19.0
13.2
6.2
19.4
0.9
1.2
1.1
12.3
(6.1)
2.4
1.5
3.1
12.6
5.7
2.3
2.0
3.2
10.6
9.3
1.8
2.3
2.4
9.3
5.1
1.7
2.8
2.1
8.1
4.3
1.7
3.4
2.2
6.7
5.4
2.1
(4.1)
(2.0)
(4.1)
8.3
4.2
17.5
6.4
(4.2)
2.2
3.5
8.4
11.9
17.7
7.0
(3.5)
3.5
5.8
7.1
12.9
5.3
5.0
(3.0)
2.0
3.1
6.3
9.4
4.1
4.3
(2.6)
1.7
2.6
5.5
8.1
3.5
4.1
(2.1)
2.0
3.4
4.6
8.0
1.3
(13.3)
(5.8)
7.6
5.3
4.6
6.7
(13.3)
(11.8)
42.5
(5.8)
(4.6)
7.6
5.3
5.3
3.3
4.6
2.5
6.7
3.3
17.5
16.2
31.4
17.7
15.2
4.2
11.9
7.6
5.3
4.6
6.7
4.2
3.7
71.9
11.9
9.4
7.6
5.3
5.3
3.3
4.6
2.5
6.7
3.3
5
8.03%
50%
1.660621
0.951605
0.542587
0.706293
6
8.03%
50%
1.683559
0.953867
0.458814
0.676816
7
8.03%
50%
1.713865
0.956723
0.390989
0.652097
Call value
53.63
55.51
57.17
10
11
12
13
14
15
0.5
2.0
0.7
2.2
0.8
2.3
0.7
1.9
0.7
1.6
0.7
1.3
0.7
1.3
0.7
1.0
0.6
0.9
16.1
6.6
22.7
21.0
7.1
28.1
27.1
8.2
35.3
25.2
7.2
32.4
25.3
6.6
31.9
26.8
5.5
32.3
28.7
5.2
33.9
30.9
5.2
36.1
29.3
4.5
33.8
2.0
3.3
2.5
6.8
8.1
2.5
3.3
3.0
5.8
13.5
3.1
4.5
3.7
4.6
19.4
2.8
3.4
3.3
3.7
19.2
2.8
3.7
2.9
4.3
18.2
3.0
4.2
2.9
3.6
18.6
3.1
4.5
3.0
3.0
20.3
2.9
4.7
3.1
2.5
22.9
3.0
4.8
2.8
2.1
21.1
5.1
(2.1)
3.0
5.1
4.7
9.8
0.1
6.5
(1.8)
4.7
8.8
4.0
12.8
0.3
8.0
(1.3)
6.7
12.7
3.2
15.9
0.0
7.7
(1.1)
6.6
12.6
2.6
15.2
0.1
7.6
(1.2)
6.4
11.8
3.1
14.9
8.1
7.5
(1.0)
6.5
12.1
2.5
14.6
0.0
7.9
(0.9)
7.0
13.3
2.2
15.5
0.2
8.8
(0.7)
8.1
14.8
1.9
16.7
0.0
8.1
(0.6)
7.5
13.6
1.6
15.2
0.0
9.7
12.5
15.9
15.1
6.8
14.6
15.3
16.7
9.7
4.2
12.5
4.8
15.9
5.4
15.1
4.6
6.8
1.8
14.6
3.5
15.3
3.2
16.7
3.1
15.2
67.8
83.0
13.8
9.7
12.5
15.9
15.1
6.8
14.6
15.3
16.7
9.7
4.2
12.5
4.8
15.9
5.4
15.1
4.6
6.8
1.8
14.6
3.5
15.3
3.2
16.7
3.1
15.2
67.8
83.0
13.8
after Exhibit 5
Probable Reserves
Probable Reserves: Production and cash Flow Projections ($ millions except as noted)
Production
Crude and Condensates (MB)
Gas (MMCF)
0.2
2.8
0.3
4.2
0.4
4.9
0.4
5.3
0.5
4.2
0.5
3.8
0.7
4.5
3.7
5.8
9.5
6.3
9.4
15.7
8.0
11.6
19.6
9.6
14.1
23.7
13.3
12.3
25.6
14.3
12.3
26.6
17.0
13.0
30.0
0.8
0.4
1.3
0.4
6.6
1.3
0.7
1.9
0.8
11.0
1.7
0.8
2.3
1.2
13.6
2.0
2.6
2.8
2.5
13.8
2.2
4.4
3.0
1.6
14.4
2.3
4.7
2.9
1.3
15.4
2.7
5.3
3.1
1.5
17.4
2.9
(0.2)
2.7
3.9
0.2
4.1
10.0
3.7
0.0
3.7
7.3
0.8
8.1
4.3
4.8
(0.2)
4.6
9.0
1.1
10.1
11.4
4.8
(0.2)
4.6
9.2
2.2
11.4
14.0
3.8
0.3
4.1
10.3
1.9
12.2
2.6
4.2
0.3
4.5
10.9
1.6
12.5
0.5
5.5
0.1
5.6
11.8
1.6
13.4
0.3
(5.9)
3.8
(1.3)
(2.6)
9.6
12.0
13.1
(5.9)
(5.2)
42.5
3.8
3.0
(1.3)
(0.9)
(2.6)
(1.6)
9.6
5.3
12.0
5.9
13.1
5.7
Development capex
PV @ risk free rate
Total PV
10.0
9.3
32.3
4.3
3.7
11.4
9.0
14.0
10.3
4.1
8.1
10.1
11.4
9.6
12.0
13.1
4.1
3.6
71.4
8.1
6.4
10.1
7.1
11.4
7.1
9.6
5.3
12.0
5.9
13.1
5.7
5
8.03%
50%
1.628969
0.94834
0.510935
0.695302
6
7
8.03%
8.03%
50%
50%
1.654666 1.687115
0.951004 0.954209
0.429921 0.364239
0.666373 0.64216
Call value
52.72
54.65
56.34
10
11
12
13
14
15
0.9
4.2
0.8
3.3
0.7
2.4
0.6
2.1
0.5
2.0
0.4
1.5
0.4
1.3
0.3
1.1
19.6
11.6
31.2
20.3
10.7
31.0
19.8
9.3
29.1
18.6
9.5
28.1
17.1
10.1
27.2
15.8
8.8
24.6
14.5
8.1
22.6
13.4
7.3
20.7
2.9
5.7
3.3
2.0
17.3
3.1
6.0
3.0
1.5
17.4
3.0
6.4
2.8
1.4
15.5
2.8
7.0
2.6
1.4
14.3
2.7
7.4
2.5
1.4
13.2
2.5
7.4
2.2
1.4
11.1
2.3
7.3
2.0
1.3
9.7
2.1
7.2
1.9
1.3
8.2
5.8
0.0
5.8
11.5
1.9
13.4
0.6
5.5
0.0
5.5
11.9
1.6
13.5
0.3
5.4
0.0
5.4
10.1
1.4
11.5
0.5
5.0
0.0
5.0
9.3
1.4
10.7
0.5
4.7
0.0
4.7
8.5
1.4
9.9
0.0
4.0
0.0
4.0
7.1
1.4
8.5
0.2
3.5
0.0
3.5
6.2
1.4
7.6
0.5
3.0
0.0
3.0
5.2
1.3
6.5
0.0
12.8
13.2
11.0
10.2
9.9
8.3
7.1
12.8
4.9
13.2
4.5
11.0
3.3
10.2
2.7
9.9
2.4
8.3
1.8
7.1
1.3
6.5
51.0
57.5
9.6
12.8
13.2
11.0
10.2
9.9
8.3
7.1
12.8
4.9
13.2
4.5
11.0
3.3
10.2
2.7
9.9
2.4
8.3
1.8
7.1
1.3
6.5
51.0
57.5
9.6
after Exhibit 6
Possible Reserves
Possible Reserves: Production and cash Flow Projections ($ millions except as noted)
Production
Crude and Condensates (MB)
Gas (MMCF)
0.1
0.5
0.8
3.5
0.9
3.8
0.8
3.9
0.8
3.6
1.0
3.7
1.6
3.2
2.1
0.6
2.7
10.1
3.6
13.7
13.2
5.1
18.3
14.4
6.9
21.3
18.0
7.2
25.2
24.1
7.7
31.8
42.3
7.7
50.0
0.3
0.2
0.4
0.7
1.1
1.2
1.0
1.6
1.4
8.5
1.6
1.5
2.1
2.2
10.9
1.8
2.1
2.5
4.9
10.0
2.2
6.5
2.9
3.5
10.1
2.8
13.1
3.4
3.1
9.4
5.0
21.2
5.2
3.6
15.0
0.8
(0.4)
0.4
0.7
0.3
1.0
9.7
3.1
0.0
3.1
5.4
1.4
6.8
9.8
4.2
(0.3)
3.9
7.0
1.9
8.9
22.4
4.4
(0.5)
3.9
6.1
4.4
10.5
38.9
3.2
0.7
3.9
6.2
4.2
10.4
27.4
3.2
0.7
3.9
5.5
3.8
9.3
6.8
5.4
0.2
5.6
9.4
3.8
13.2
0.7
Cash Flow
Terminal Value
Total
PV
Total PV
(8.7)
(3.0)
(13.5)
(28.4)
(17.0)
2.5
12.5
(8.7)
(7.7)
8.6
(3.0)
(2.4)
(13.5)
(9.4)
(28.4)
(17.6)
(17.0)
(9.3)
2.5
1.2
12.5
5.4
Development capex
PV @ risk free rate
Total PV
9.7
9.0
86.6
9.8
8.4
22.4
17.8
38.9
28.6
27.4
18.6
6.8
4.3
1.0
6.8
8.9
10.5
10.4
9.3
12.5
1.0
0.9
83.1
6.8
5.4
8.9
6.2
10.5
6.5
10.4
5.7
9.3
4.5
12.5
5.4
5
8.03%
50%
0.880888
0.810811
-0.23715
0.406272
6
7
8.03%
8.03%
50%
50%
0.971764 1.05487
0.834416 0.854258
-0.25298 -0.26801
0.400141 0.394348
Call value
43.81
47.91
51.50
10
11
12
13
14
15
2.1
3.0
2.4
3.2
2.3
2.8
2.0
1.9
1.7
1.3
1.6
1.4
1.4
1.2
1.2
1.0
59.1
7.0
66.1
67.4
7.8
75.2
69.4
9.3
78.7
66.8
8.1
74.9
62.7
6.1
68.8
59.7
5.9
65.6
56.4
5.9
62.3
52.0
5.7
57.7
6.8
31.9
6.9
4.5
16.0
7.9
33.0
7.3
3.5
23.5
8.0
35.1
7.6
3.3
24.7
7.1
26.4
6.9
3.3
31.2
6.7
26.3
6.3
3.2
26.3
6.4
25.7
5.9
3.2
24.4
6.1
25.8
5.7
3.1
21.6
5.6
25.6
5.3
3.1
18.1
6.1
(0.2)
5.9
10.1
4.4
14.5
1.0
7.8
0.2
8.0
15.5
3.7
19.2
0.7
8.9
0.0
8.9
15.8
3.3
19.1
3.0
10.9
0.0
10.9
20.3
3.3
23.6
2.3
9.4
0.0
9.4
16.9
3.3
20.2
0.0
8.8
0.0
8.8
15.6
3.2
18.8
0.1
7.9
0.0
7.9
13.7
3.2
16.9
0.0
6.7
0.0
6.7
11.4
3.1
14.5
0.0
13.5
18.5
16.1
21.3
20.2
18.7
16.9
13.5
5.2
18.5
6.3
16.1
4.9
21.3
5.7
20.2
4.8
18.7
4.0
16.9
3.2
14.5
72.3
86.8
14.4
13.5
18.5
16.1
21.3
20.2
18.7
16.9
13.5
5.2
18.5
6.3
16.1
4.9
21.3
5.7
20.2
4.8
18.7
4.0
16.9
3.2
14.5
72.3
86.8
14.4
MW Petroleum
Summary of Valuation
Ignoring Value of Financing and Exta Assets
$
$
$
$
Total Value
DCF
Option (6-yr)
388.72 $
388.72
42.48 $
55.51
42.53 $
54.65
8.61 $
47.91
482.33
546.79