Fill in and calculate all cells that are pink-highlighted.

Use the information above to explain the performance and trends for Midland Energy ( revenues, capital expenditures, assets, and profits ). Which business unit is operating more efficiently?

7 Balance Sheet Income Statement Operating Results 8 9 10 2004 11 12 13 Historical 2005 16,707 S 3,131 18,689 6,338 2,218 47,083 S Assets: Cash & Cash equivalents Restricted Cash Notes Receivable Inventory Prepaid Expenses Total Current Assets 2006 19,206 3,131 19,681 7,286 2,226 51,528 14 15 Historical 2004 2005 2006 $ 201,425 249,246 $ 248,518 1,239 2,817 3,524 $ 202,664 $ 252,062 '$ 252,042 94,672 125,949 124,131 15,793 18,237 20,079 9,417 9,793 9,706 6,642 6,972 7,763 747 656 803 18,539 20,905 20,659 27,849 28,257 26,658 $ 29,005 $ 41,294 $ 42.243 10,568 8,028 11,081 528 543 715 S 17,910 $ 32,723 S 30,447 7,414 12,830 11,747 $ 10,496 $ 19,893 $ 18,701 s 16 17 Operating Revenues Plus: Other Income Total Revenue & Other Income Less: Crude Oil & Product Purchases Less: Production & Manufacturing Less: Selling, General & Administrative Less: Depreciation & Depletion Less: Exploration Expense Less: Sales Based Taxes Less: Other Taxes & Duties Operating Income Less: Interest Expense Less: Other Non-Operating Expenses Income Before Taxes Less: Taxes Net Income 18 19 Investments & Advances Net Property, Plant & Equipment Other Assets Total Assets 30,140 156,630 10,818 244,671 S 34,205 167,350 9,294 262,378 20 21 $ 22 23 24 25 Liabilities & Owners' Equity: Accounts Payable & Accrued Liabilities Current Portion of Long Term Debt Taxes Payable Total Current Liabilities 24,562 26,534 5,723 56,819 $ 26,576 20,767 5,462 52,805 26 27 S 28 29 30 Long Term Debt Post Retirement Benefit Obligations Accrued Liabilities Deferred Taxes Other Long Term Liabilities Total Long Term Liabilities 82,414 6,950 4,375 14,197 31 81,078 9,473 4,839 14,179 2,725 112,294 32 2,423 33 34 35 S 110,359 $ 36 Total Shareholders' Equity Total Liabilities & Owners' Equity 77,493 244,671 97,279 262,378 37 S S 38 0 0 39 8 Fill in and calculate all cells that are pink-highlighted.. 9 10 Historical Segments %) 2004 2005 2006 11 Exploration & Production: : Operating Revenue After-Tax Earnings Historical Segments 2004 2005 2006 $ 15,931 $ 20,870 $ 22,357 6,781 13,349 12,556 12 13 Operating Revenue E&P Share R&M Share Chemical Share 14 15 16 Capital Expenditures Depreciation Total Assets 6,000 4,444 76,866 7,180 4,790 125,042 7.940 5,525 140, 100 0.0% 0.0% 0.0% 17 18 19 Profit Mar 20 ATO Ratid After-Tax Earnings E&P Share R&M Share R& Chemical Share 21 22 23 Refining & Marketing: Operating Revenue After-Tax Earnings 0.0% 0.0% 0.0% $ 166,280 2,320 $ 206,719 $ 202,971 4,382 4,047 24 25 26 27 Capital Expenditures Depreciation Total Assets 1,455 1,620 60,688 1,550 1,591 91,629 1,683 1,596 93,829 Capital Expenditures E&P Share EP R&M Share R& Chemical Share 28 29 30 0.0% 0.0% 0.0% Profit Margin ATO Ratio 31 32 33 34 35 Petrochemicals: Operating Revenue After-Tax Earnings $ 19,215 1.394 $ 21,657 $ 23,189 2,162 2,097 Depreciation E&P Share E R&M Share Chemical Share 36 37 305 0.0% 0.0% 0.0% 38 Capital Expenditures Depreciation Total Assets 578 19.943 330 591 28,000 436 642 28,450 39 40 41 Profit Margin ATO Ratio Total Assets E&P Share P R&M Share Chemical Share 42 43 44 0.0% 0.0% 0.0% 7 Balance Sheet Income Statement Operating Results 8 9 10 2004 11 12 13 Historical 2005 16,707 S 3,131 18,689 6,338 2,218 47,083 S Assets: Cash & Cash equivalents Restricted Cash Notes Receivable Inventory Prepaid Expenses Total Current Assets 2006 19,206 3,131 19,681 7,286 2,226 51,528 14 15 Historical 2004 2005 2006 $ 201,425 249,246 $ 248,518 1,239 2,817 3,524 $ 202,664 $ 252,062 '$ 252,042 94,672 125,949 124,131 15,793 18,237 20,079 9,417 9,793 9,706 6,642 6,972 7,763 747 656 803 18,539 20,905 20,659 27,849 28,257 26,658 $ 29,005 $ 41,294 $ 42.243 10,568 8,028 11,081 528 543 715 S 17,910 $ 32,723 S 30,447 7,414 12,830 11,747 $ 10,496 $ 19,893 $ 18,701 s 16 17 Operating Revenues Plus: Other Income Total Revenue & Other Income Less: Crude Oil & Product Purchases Less: Production & Manufacturing Less: Selling, General & Administrative Less: Depreciation & Depletion Less: Exploration Expense Less: Sales Based Taxes Less: Other Taxes & Duties Operating Income Less: Interest Expense Less: Other Non-Operating Expenses Income Before Taxes Less: Taxes Net Income 18 19 Investments & Advances Net Property, Plant & Equipment Other Assets Total Assets 30,140 156,630 10,818 244,671 S 34,205 167,350 9,294 262,378 20 21 $ 22 23 24 25 Liabilities & Owners' Equity: Accounts Payable & Accrued Liabilities Current Portion of Long Term Debt Taxes Payable Total Current Liabilities 24,562 26,534 5,723 56,819 $ 26,576 20,767 5,462 52,805 26 27 S 28 29 30 Long Term Debt Post Retirement Benefit Obligations Accrued Liabilities Deferred Taxes Other Long Term Liabilities Total Long Term Liabilities 82,414 6,950 4,375 14,197 31 81,078 9,473 4,839 14,179 2,725 112,294 32 2,423 33 34 35 S 110,359 $ 36 Total Shareholders' Equity Total Liabilities & Owners' Equity 77,493 244,671 97,279 262,378 37 S S 38 0 0 39 8 Fill in and calculate all cells that are pink-highlighted.. 9 10 Historical Segments %) 2004 2005 2006 11 Exploration & Production: : Operating Revenue After-Tax Earnings Historical Segments 2004 2005 2006 $ 15,931 $ 20,870 $ 22,357 6,781 13,349 12,556 12 13 Operating Revenue E&P Share R&M Share Chemical Share 14 15 16 Capital Expenditures Depreciation Total Assets 6,000 4,444 76,866 7,180 4,790 125,042 7.940 5,525 140, 100 0.0% 0.0% 0.0% 17 18 19 Profit Mar 20 ATO Ratid After-Tax Earnings E&P Share R&M Share R& Chemical Share 21 22 23 Refining & Marketing: Operating Revenue After-Tax Earnings 0.0% 0.0% 0.0% $ 166,280 2,320 $ 206,719 $ 202,971 4,382 4,047 24 25 26 27 Capital Expenditures Depreciation Total Assets 1,455 1,620 60,688 1,550 1,591 91,629 1,683 1,596 93,829 Capital Expenditures E&P Share EP R&M Share R& Chemical Share 28 29 30 0.0% 0.0% 0.0% Profit Margin ATO Ratio 31 32 33 34 35 Petrochemicals: Operating Revenue After-Tax Earnings $ 19,215 1.394 $ 21,657 $ 23,189 2,162 2,097 Depreciation E&P Share E R&M Share Chemical Share 36 37 305 0.0% 0.0% 0.0% 38 Capital Expenditures Depreciation Total Assets 578 19.943 330 591 28,000 436 642 28,450 39 40 41 Profit Margin ATO Ratio Total Assets E&P Share P R&M Share Chemical Share 42 43 44 0.0% 0.0% 0.0%