Maturity(Years) Rate

1 4.54%
10 4.66%
30 4.98%

Business segment Credit Rating Debt/Value Spread to Treasury

Exploration & Production A+ 46% 1.60%
Refining & Marketing BBB 31% 1.80%
Pertochemicals AA- 40% 1.35%
Consolidated A+ 42.20% 1.62%

Tax Rates AverageTax rate

2004 41.40%
2005 39.21% 39.73%
2006 38.58%
Business segment Maturity(Years) Equivalent Rate Spread to Treasury Cost of Debt
Exploration & Production 10 4.66% 1.60% 6.26%
Refining & Marketing 10 4.66% 1.80% 6.46%
Pertochemicals 10 4.66% 1.35% 6.01%
Consolidated 10 4.66% 1.62% 6.28%
Business D/E Beta Tax Rate Beta Unlevered
Consolidated 0.593 1.25 39.73% 0.9208714528
Exploration & Production 0.398 1.15 39.73% 0.9324717224
Refining & Marketing 0.203 1.2 39.73% 1.0490219864
Pertochemicals 0.4 0.4411022369 39.73% 0.3554163584

New Beta based on D/E ratios

Business segment Debt/Value Debt Equity D/E Ratio
Consolidated 42.20% 42.2% 57.8% 73.0%
Exploration & Production 46% 46% 54% 85.2%
Refining & Marketing 31% 31% 69% 44.9%
Pertochemicals 40% 40% 60% 66.7%

Cost of Equity
Business segment Maturity Rf EMRP Beta
Consolidated 10 4.66% 5.00% 1.33
Exploration & Production 10 4.66% 5.00% 1.41
Refining & Marketing 10 4.66% 5.00% 1.33
Pertochemicals 10 4.66% 5.00% 0.50

Exploration & Production

Equity Debt D/E Equity Beta
Jackson Energy 57931 6480 11.19% 0.89
Wide Plain 46089 39375 85.43% 1.21
Corsicana 42263 6442 15.24% 1.11
Worthington 27591 13098 47.47% 1.39
Average
Refining & Marketing
Equity Debt D/E Equity Beta
Bexar Energy 60356 6200 10.27% 1.7
Kirk Corp. 15567 3017 19.38% 0.94
Whitepoint 9204 1925 20.91% 1.78
Petrarch 2460 -296 -12.03% 0.24
Arkana 18363 5931 32.30% 1.25
Beaumont 32662 6743 20.64% 1.04
Dameron 48796 24525 50.26% 1.42
Average
Already givenExhibit 5

Assests
Beta Levered New Consolidated 262379
1.33 Exploration & Production 140100
1.41 Refining & Marketing 93829
1.33 Pertochemicals 28450
0.50 Pertochemicals

Cost of Equity
11.29%
11.72%
11.33%
7.15%

Beta Unlevered
0.833787705
0.7987249388
1.01660483
1.0807694159
0.9324717224

Beta Unlevered
1.6008841749
0.8416825598
1.5807374369
0.2587661842
1.0463151793
0.9249137426
1.0898546269
1.0490219864
Weights Beta Unlevered Calc
1 0.9208714528 0.920871453
0.533960416 0.9324717224 0.497902989
0.35760865 1.0490219864 0.375139336
0.108430934 0.047829127
Calculated 0.4411022369
Business segment D/V E/V Tax Cost of Equity Costof Debt
Consolidated 42.20% 57.80% 39.73% 11.29% 6.26%
Exploration & Production 46.00% 54.00% 39.73% 11.72% 6.46%
Refining & Marketing 31.00% 69.00% 39.73% 11.33% 6.01%
Pertochemicals 40.00% 60.00% 39.73% 7.15% 6.28%
WACC
8.12%
8.12%
8.94%
5.80%