Case | HBS Case Collection | 1994 (Revised from original 1994 version)

MW Petroleum Corporation (A)

by Timothy A. Luehrman, Peter Tufano and Barbara Wall

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.

Keywords: Acquisition; Business Subsidiaries; Mining; Cash Flow; Stock Options; Financing and Loans; Price; Negotiation; Production; Valuation; Mining Industry;

Citation:

Luehrman, Timothy A., Peter Tufano, and Barbara Wall. "MW Petroleum Corporation (A)." Harvard Business School Case 295-029, November 1994. (Revised from original November 1994 version.)