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2,696
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314
359
673
688
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1415
2,008
1,919
3,927
7.94
2.10
5.84
Table TN-A
Inflation 0.05
Years 8
Table TN-B
Inflation rate 5%
NPV of E&D program per Gulf share, assuming average elapsed time to oil recovery of
Bid
8 years -50.41 89.41
7 years -41.13 80.13 Time B/E
6 years -30.27 69.27 8 3.83
Break even point 3.83 Years 0.00 39
NPV of E&D program per Gulf share, assuming oil price inflation rate of
Bid
0 % per year -68.05 107.05 Inflation B/E
5 % per year -50.41 89.41 0.05 0.14
10 % per year -25.80 64.80
Break even point 13.9% per year 0.00 39.00
15 % per year 8.02 30.98
Value
-50.41
m as a Function of Selected Variables
Exhibit 1
Page 8
Exhibit 2
GULF
Exploration Cost Reserve Data
($ millions) (millions of composite barrels)
Year Exp'd + Cap'd = Total Begin + Add'ns
Page 9
Exhibit 2
SOCAL
Reserve Data Exploration Cost Reserve Da
ons of composite barrels) ($ millions) (millions of compos
- Prod'n = End Exp'd + Cap'd = Total Begin +
Page 10
Exhibit 2
Reserve Data
(millions of composite barrels)
Add'ns - Prod'n = End
Page 11
Exhibit 3
Price per
Standard & Composite Consumer Average Stock
Year Poor's 500 Barrel (a) Price Index Price (7 majors)b
GULF SOCAL
Dividend per
Year Closing Price Share Closing Price
a. Composite amounts represent crude oil, natural as liquids, and natural gas on a
per-barrel basis. Natural gas volumes are converted to crude oil equivalent barrels
using a conversion ratio of 5.7 thousand cubic feet per barrel.
b. Exxon, Gulf, Mobil, Shell, Standard Oil California, Standard Oil Indiana, and Texaco.
Page 12
Exhibit 3
SOCAL
Dividend
per Share
$1.08
1.18
1.28
1.45
1.80
2.20
2.40
$2.40
valent barrels
and Texaco.
Page 13
Exhibit 4
Exhibit 4 Pro Forma Balance Sheet -- Gulf and Socal Combined ($ in millions)
Page 14
Exhibit 4
($ in millions)
per share
Page 15
Exhibit 4
$0.57
Page 16
Exhibit 5
Production(a) ROE
Year Oil Gas EPS(b) Gulf Industry
Note: The industry consists of seven major producers: Exxon, Gulf, Mobil, Shell,
Standard Oil California, Standard Oil Indiana, and Texaco.
(a) Gulf's U.S. production as percentage of U.S. production of the seven
major companies.
(b) Earnings per share as percentage of the seven-company average.
Page 17
Exhibit 5
ROA
Gulf Industry
4.8% 6.0%
8.0 8.5
8.5 9.0
5.6 6.5
6.1 7.0
5.3 6.0
5.3 6.0
7.7 9.0
7.5 9.0
6.0 8.0
4.4% 5.5%
Page 18
Exhibit 6
Page 19
Exhibit 7
GULF SOCAL
Date Price Volume(a) Price Volume(a)
1983 35 5/8
6-Aug 37 3/8 16,633 21,473
13-Aug 39 23,955
20-Aug 42 5/8 49,186
27-Aug 41 1/2 13,737
3-Sep 41 1/2 8,942 37 1/4 11,452
10-Sep 41 1/2 23,020
17-Sep 41 1/2 26,515
24-Sep 44 1/2 31,475
1-Oct 42 1/8 14,590
8-Oct 44 1/8 39,708 35 3/8 17,384
15-Oct 47 71,629
22-Oct 46 1/2 91,278
29-Oct 47 1/2 19,415
5-Nov 44 1/2 39,761 35 3/8 18,269
12-Nov 45 1/8 26,660
19-Nov 42 1/4 56,685
26-Nov 43 3/4 43,358
3-Dec 45 1/8 65,168 34 1/8 14,356
10-Dec 43 15,568
17-Dec 42 3/4 13,879
24-Dec 42 5/8 5,210
31-Dec 43 1/8 10,301
1984
7-Jan 46 5/8 34,790 34 7/8 9,959
14-Jan 49 1/4 51,756 35 5/8 15,098
21-Jan 47 23,003 35 7/8 16,351
28-Jan 53 1/8 39,693 35 1/2 15,687
4-Feb 55 1/2 62,309 36 1/2 16,680
11-Feb 57 48,409 33 7/8 19,866
18-Feb 54 70,678 35 7/8 13,798
25-Feb 62 5/8 96,862 36 5/8 12,775
3-Mar 69 1/2 75,126 35 3/4 20,691
10-Mar 65 1/8 53,597 34 1/2 23,149
(a) Total volume for week. All dates shown are Fridays. Volume is shown in
100-share lots. For the week ending 8/5/83, Gulf volume is 1.66 million shares.
Page 20