Midland Energy (07!03!2016)

 2017-01-0015 FMG 312983964.xlsx

Midland Energy Resources, Resources, Inc.: Cost of Capital Key Results WACC 8.51% 8.75% 9.60% 3.86%

Midland Exploration and Production Refining and Marketing Petroce!icals

)A

)E

0.79 0.84 0.98 -0.14

1.36 1.56 1.41 -0.23

WACC for Midla Equity Beta Current from Exh 5

E !E E!" !"

1.25 59.30% 62.80% 37.20%

#ax $ate

#

38.58%

ormu*a E!" E



0.785

 o& for #ar'et #ar'et (a)ita* +tru(ture a'ain  e& ,eta E

E r f 

Cot of Equity Cot of e,t Weigtage A"erage Cost of Capital

/$ r e r  WACC

1.36 uin' E!"57.8% 4.98% 5.00% 11.77% 6.60% #.$%&

WACC for Explor Exploratio ation n an r f  Cot of Equity Cot of e,t Weigtage A"erage Cost of Capital

/$ r e r  WACC

4.98% 5.00% 12.76% 6.58% #.'$&

Calculations for )A (ackson Energy, Inc.

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 2017-01-0015 FMG 312983964.xlsx

*+E 11.20% 

*+E 11.2!100

 111.2

E+ 89.93%

 185.4

E+ 53.94%

 115.2

E+ 86.81%

 147.5

E+ 67.80%

0.80

Wide plain petroleu! *+E 85.40% 

*+E 85.4!100

0.65

Corsicana Energy Corp *+E 15.20% 

*+E 15.2!100

0.96

Wortington Petroleu! *+E 47.50% 

*+E 47.5!100

0.94 -.#

2nle"ered A"erage )A of Industry )E

%.$/

WACC for Refining and r f  /$ r e

Cot of Equity Cot of e,t Weigtage A"erage Cost of Capital

r  WACC

4.98% 5.00% 12.05% 6.78% 0./-&

Calculations for )A 1exar Energy, Inc *+E 10.30% 

*+E 10.3!100

*+E 19.40%

*+E 19.4!100

 110.3

E+ 90.66%

 119.4

E+ 83.75%

1.54

Kirk Corp

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 2017-01-0015 FMG 312983964.xlsx



0.79

*+E 20.90% 

*+E 20.9!100

3ite point energy  120.9

E+ 82.71%

 88

E+ 113.64%

 132.3

E+ 75.59%

 120.6

E+ 82.92%

 150.3

E+ 66.53%

1.47

Petrarc 4uel ser"ices *+E -12.00% 

*+E -12!100

0.27

Arkana Petroleu! Corp *+E 32.30% 

*+E 32.3!100

0.94

1eau!ont Energy, Inc. *+E 20.60% 

*+E 20.6!100

0.86

*a!eron 4uel 5er"ices *+E 50.30% 

*+E 50.3!100

0.94 -.0#

2nle"ered A"erage )A of Industry )E

%.%

WACC for Petroce ;e &i** (a*(u*ate the   of etro(hemi(a* i


0.785  of etro(hemi(a*

*i"ision

E $/ etro(hemi(a*

E ;a

$/ ;a

0.45

0.35

-0.136 Calc for Asset Weigts Assets 140:100 ;a 93:829 ;a 28:450 ;a

0.53 0.36 0.11

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 2017-01-0015 FMG 312983964.xlsx

#ota* /i*an

262:379

6arget capital 5tructure 4ro! 6a7le %  40.00%

E 60.00%

)E

-0.23 r f 

Cot of Equity Cot of e,t Weigtage A"erage Cost of Capital

/$ r e r  WACC

4.98% 5.00% 3.85% 6.33% 8.#/&

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 2017-01-0015 FMG 312983964.xlsx

re

11.77% 12.76% 12.05% 3.85%

d:

6arget capital 5tructure 4ro! 6a7le %  E 42.20% 57.80% 4or 6ax =n(ome ,efore taxe #ax

30:447 11:747

#ax rate

38.58%

9ield to !aturity for 8-year 25 7ond *e7t pay!ent spread to 6reasury

 

.0#& %./;&

Production: 6arget capital 5tructure 4ro! 6a7le %  E

46.00% 4or 6ax =n(ome ,efore taxe #ax 6ax rate

54.00%

6

9ield to !aturity for 8-year 25 7ond *e7t pay!ent spread to 6reasury

30447 11747 8#.$#& rf 

.0#& %./-&

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 2017-01-0015 FMG 312983964.xlsx

)E

*+ 10.07%

0.89

)E

*+ 46.06%

1.21

)E

*+ 13.19%

1.11

)E

*+ 32.20%

 

1.39

arketing: 6arget capital 5tructure 4ro! 6a7le %  E

31.00% 4or 6ax =n(ome ,efore taxe #ax 6ax rate

69.00%

30447 11747 8#.$#&

6

9ield to !aturity for 8-year 25 7ond *e7t pay!ent spread to 6reasury

*+ 9.34%

*+ 16.25%

rf 

.0#& %.#-&

)E

1.7

)E

0.94

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 2017-01-0015 FMG 312983964.xlsx

*+ 17.29%

*+ -13.64%

*+ 24.41%

*+ 17.08%

*+ 33.47%

)E

1.78

)E

0.24

)E

1.25

)E

1.04

)E

1.42

icals:

etro(hemi(a* ;a 0.11

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