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Midland Case Analysis 2

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Business
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Surname 1
Students Name:
Tutor’s Name:
Management
Date Due:
Introduction
The main objective of the Midland Case is determining the weighted Average cost of
capital abbreviated as WACC, for the whole company in its entirety plus all the divisions it has.
The analysis is done partly as the annual budgeting capital process that is imperative for the
company to initiate. The company is a global energy distributor that is involved in both
production and exploration of not only gas but also oil, which also refines and markets the
products plus also the company is involved in petrochemicals. It has been in operation for close
to 120 years and boasts of over 70,000 employees. The data acquired directs that there is a need
for the capital structure to be improved.
Executive Summary
In this type of business, the Midland Energy Resources, Inc. is indeed one of the biggest
global energy companies that is involved in various different services and products in its day to
day operations offering to its clientele. Operations involve three different divisions which
include refining and marketing, oil and gas exploration and production and lastly, it also operates
on petrochemicals. Over the years, the company has indeed proven to be profitable with a

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Surname 2
reported revenue of over $240 billion in operation.
Midland Divisions
Exploration & Production
Exploration and production (E&P) of gas and oil is one of the most profitable businesses
for the Midland Company boasting having very high net margins among other competitors in the
industry in a span of close to five years. The Midland Company did anticipate and acquired the
most promising properties and thus heavily invested in these properties, developing reserves and
also expanded its operations. However, it is critically important to keep a close check in the areas
that they faced high competition, for instance, West Africa, Central Asia and the Middle East
among others.
Refining and Marketing
Globally, the Midland energy company boasts of having forty refineries thus are able to
distil a large amount of oil of about five million barrels of capacity every day. Furthermore, this
is also a zone where Midland raked in high revenues. Despite the fact that margins had
tremendously decreased over the previous years, it was evident that the long-term trend the
industry usually has been in line with the relatively small margin the company was making.

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Surname 1 Student’s Name: Tutor’s Name: Management Date Due: Introduction The main objective of the Midland Case is determining the weighted Average cost of capital abbreviated as WACC, for the whole company in its entirety plus all the divisions it has. The analysis is done partly as the annual budgeting capital process that is imperative for the company to initiate. The company is a global energy distributor that is involved in both production and exploration of not only gas but also oil, which also refines and markets the products plus also the company is involved in petrochemicals. It has been in operation for close to 120 years and boasts of over 70,000 employees. The data acquired directs that there is a need for the capital structure to be improved. Executive Summary In this type of business, the Midland Energy Resources, Inc. is indeed one of the biggest global energy companies that is involved in various different services and products in its day to day operations offering to its clientele. Operations involve three different divisions which include refining and marketing, oil and gas exploration and production and lastly, it also operates on petrochemicals. Over the years, the company has indeed proven to be profitable with a Surname 2 reported revenue of over $240 billion in operation. Midland Divisions Exploration & Production Exploration and production (E&P) of gas and oil is one of the most profitable businesses for the Midland Company boasting havin ...
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