Amoco Corp. negotiated to a wholly-owned subsidiary, MW Petroleum, Apache Corp. MW has large reserves of oil and gas that many properties in various stages of planning, development, production and sale. The proposed acquisition is a big one for Apache and provides several important financing and valuation issues. This case focuses on the evaluation and implementation of a creative financing structure, which allows to restructure oil price risk of the buyer and seller.

Amoco Corp. negotiated to a wholly-owned subsidiary, MW Petroleum, Apache Corp. MW has large reserves of oil and gas that many properties in various stages of planning, development, production and sale. The proposed acquisition is a big one for Apache and provides several important financing and valuation issues. This case focuses on the evaluation and implementation of a creative financing structure, which allows to restructure oil price risk of the buyer and seller.
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from
Timothy A. Luehrman,
Peter Tufano,
Barbara D. Wall
Source: Harvard Business School
17 pages.
Publication Date: Feb 27, 1995. Prod #: 295045-PDF-ENG
MW Petroleum Corp. (B) HBR case solution