Evercore Investment Banking Pitch Book
Appendix
Weighted Average Cost of Capital
Equity Cost of
Capital
WACC
Company
McMoRan Exploration Co.
W&T Offshore Inc.
Energy XXI (Bermuda) Ltd.
Stone Energy Corp.
Cobalt International Energy Inc.
EPI. Oil & Gas Inc.
(3)
(4) Source: Bloomberg
Risk-Free Rate
Unlevered Beta
Debe and Preferred / Total Capitalization
Adjusted Equity Beta
Market Risk Premium
Equity Cost of Capital
Weighted Average Cost of Capital - CAPM
Stock Prices as of
11/8/12
Market Equity
Value
Pre-Tax Cost of Debt
After-Tax Cost of Debt
WACC
(1) Source: Predicted raw betas from FactSet Adjusted Equity Beta
calculated as: (067) Raw Beta +(0.33) 1.0
Unlevered Beta calculated as Adjusted Equity Betax (E/E+D (1-
T) Assumes corporate tax rate of 37.50%
10-year Treasury as of November 8, 2012
(5) Equity Cost of Capital calculated as Risk-free rate+ (Levered Equity
Betax Market Risk Premium)
EVERCORE PARTNERS
MMR
$12.51
42.29
61.25
4.2
88.34
116.81
0.97
38.1%
1.35
8.7%
7,5%
4.7%
10.1%
39
$2,056.1
5,011
9,163
216
9,365
32,343
Comparable
Companies
1.32
19.9%
1.52
8,7%
15.0%
7.5%
4.7%
12.9%
Total Debt and
Preferred Stock
$1.268
Mean
Median
($ in millions, except per share amounts)
1,420
2,737
3
2.523
5,012
Debt & Preferred/
Total Cap
38.1%
22.1%
23.0%
1.4%
21.2%
13.4%
19.9%
21.7%
Confidential
Adjusted
Beta
1.35
1.67
1.48
1.57
1.69
1.38
1.52
1.53
Unlevered
Beta
0.97
1.42
1.25
1.56
1.45
1.26
1.32
1.34
MCMoRanView entire presentation