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Midland Corporation

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Case Analysis: Midland Energy Resources, INC.: Cost of Capital
Midland’s consolidated balance sheet and its access to global financial and commodity markets
Midland Energy Resources, Inc. was a global integrated oil and gas company. It had sometimes presented attractive opportunities to trade securities and commodities. Midland was been incorporated more than 120 years with more than 80000 employees in 2007. Midland conservative compared to some of its large competitors, but it did have a group of traders in-house had three main divisions, which were exploration and production (E&P), refining and who actively managed currency, interest rate, and commodity risks within a set of guidelines marketing (R&M), and petrochemicals. Each division engaged in different operations and approved by the board. The desire to manage certain risks, or to take advantage of private had unique characteristics. For instance, E&P concentrated on oil exploration, information or unusual pricing relationships, was an additional reason that the actual capital development, and production. It was Midland’s most profitable division with anticipated structure sometimes departed, temporarily, from planned targets. heavy investment in future expanding projects, but it was also the most exposed division to geopolitical risk. R&M was the largest division by revenue, but with small profit margin.
Stock Repurchases
The projected capital spending for this division was expected to be stable. The smallest
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