点这里，有很多篇《Risk Management at Apache59》
Risk Management at Apache59
REV: AUGUST 27, 2001
Risk Management at Apache
By March of 2001, managers at Apache Corporation, an independent oil and gas exploration andproduction company, had reason to be optimistic. While oil prices had softened somewhat recently,at $27 a barrel they were much higher than the pernicious levels of 1998, when oil bottomed out at$11 per barrel. Apache had just closed on the acquisition of Repsol in Egypt's Western desert and,along with its partner Shell Overseas Holdings, had also acquired Fletcher Challenge Energy, for acombined cost of $1 billion. The value of such acquisitions, however, depended in large part on thefuture prices of oil and gas. To decrease its exposure to oil and gas price volatility, Apache hadbegun a limited hedging program centered mostly on its recently acquired properties. Apache’smanagers knew that hedging could create its own risks, and so it seemed prudent to re-evaluate thesuccess of the new program. The decision facing Apache’s managers was whether the firm shouldcontinue hedging, and if so, should its current program be extended beyond hedging the revenuesfrom acquisitions?
Apache Corporation was founded in 1954 by Raymond Plank, its current Chairman and ChiefExecutive Officer. Mr. Plank’s son, Roger, was the company’s current CFO, but the company was notcontrolled by the Plank family, and in fact, officers and directors as a group held less than 1.25% ofthe company’s common stock (see Exhibit 1-3 for Apache’s Income Statement, Balance Sheet, andCash Flow Statement). By 2001, Apache had evolved into a large independent oil company thatexplored, developed,...