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Abstract

Amoco Corp is negotiating to sell a wholly-owned subsidiary, MW Petroleum, to Apache Corp. MW owns large reserves of oil and gas comprising many properties at different stages of engineering, development, and production. The proposed acquisition is a large one for Apache, and poses several important financing and valuation problems. This case focuses primarily on valuation.
Location:
United States
Industries:
Petroleum extraction; Mining
Size:
USD300 million revenues
Other setting(s):
1991
Teaching note
-
Reference no. 5-295-133
Subject category: Finance, Accounting and Control
Authors: Timothy A Luehrman (Harvard Business School)
Published by: Harvard Business Publishing
Published in: 1995
Length: 27 pages
View full details
Case
-
Reference no. 9-306-S16
Spanish language
Subject category: Finance, Accounting and Control
Authors: Timothy A Luehrman (Harvard Business School); Peter Tufano (Harvard Business School); Barbara D Wall (Harvard Business School)
Published by: Harvard Business Publishing
Originally published in: 1994
Version: 21 November 1994
Length: 19 pages
Data source: Field research
Topics: Simulations; Derivatives; Option pricing; Real options; Acquisitions; Valuation; Project evaluation; Pricing; Subsidiaries; Cash flow; Stock options; Loans; Negotiation; Production
View full details
Supplement
-
Reference no. 9-295-045
Subject category: Finance, Accounting and Control
Authors: Timothy A Luehrman (Harvard Business School); Peter Tufano (Harvard Business School); Barbara D Wall (Harvard Business School)
Published by: Harvard Business Publishing
Originally published in: 1995
Version: 8 April 1996
Length: 17 pages
Data source: Field research
Topics: Simulations; Derivatives; Option pricing; Real options; Acquisitions; Valuation; Project evaluation; Pricing; Subsidiaries; Mergers & acquisitions; Risk management; Loans; Energy
View full details
Supplementary software
-
Reference no. XLS083
Subject category: Finance, Accounting and Control
Authors: Timothy A Luehrman (Harvard Business School); Peter Tufano (Harvard Business School); Barbara D Wall (Harvard Business School)
Published by: Harvard Business Publishing
Originally published in: 2010
Revision date: 14-Jun-2019
Format: .xls
Data source: Field research
Topics: Acquisitions; Derivatives; Option pricing; Pricing; Project evaluation; Real options; Simulations; Valuation
View full details

About

Abstract

Amoco Corp is negotiating to sell a wholly-owned subsidiary, MW Petroleum, to Apache Corp. MW owns large reserves of oil and gas comprising many properties at different stages of engineering, development, and production. The proposed acquisition is a large one for Apache, and poses several important financing and valuation problems. This case focuses primarily on valuation.

Settings

Location:
United States
Industries:
Petroleum extraction; Mining
Size:
USD300 million revenues
Other setting(s):
1991

Related

Teaching note
-
Reference no. 5-295-133
Subject category: Finance, Accounting and Control
Authors: Timothy A Luehrman (Harvard Business School)
Published by: Harvard Business Publishing
Published in: 1995
Length: 27 pages
View full details
Case
-
Reference no. 9-306-S16
Spanish language
Subject category: Finance, Accounting and Control
Authors: Timothy A Luehrman (Harvard Business School); Peter Tufano (Harvard Business School); Barbara D Wall (Harvard Business School)
Published by: Harvard Business Publishing
Originally published in: 1994
Version: 21 November 1994
Length: 19 pages
Data source: Field research
Topics: Simulations; Derivatives; Option pricing; Real options; Acquisitions; Valuation; Project evaluation; Pricing; Subsidiaries; Cash flow; Stock options; Loans; Negotiation; Production
View full details
Supplement
-
Reference no. 9-295-045
Subject category: Finance, Accounting and Control
Authors: Timothy A Luehrman (Harvard Business School); Peter Tufano (Harvard Business School); Barbara D Wall (Harvard Business School)
Published by: Harvard Business Publishing
Originally published in: 1995
Version: 8 April 1996
Length: 17 pages
Data source: Field research
Topics: Simulations; Derivatives; Option pricing; Real options; Acquisitions; Valuation; Project evaluation; Pricing; Subsidiaries; Mergers & acquisitions; Risk management; Loans; Energy
View full details
Supplementary software
-
Reference no. XLS083
Subject category: Finance, Accounting and Control
Authors: Timothy A Luehrman (Harvard Business School); Peter Tufano (Harvard Business School); Barbara D Wall (Harvard Business School)
Published by: Harvard Business Publishing
Originally published in: 2010
Revision date: 14-Jun-2019
Format: .xls
Data source: Field research
Topics: Acquisitions; Derivatives; Option pricing; Pricing; Project evaluation; Real options; Simulations; Valuation
View full details