Financial Analysis Project- ECA & CNQ

1.0 Executive Summary This report presents a monetary paygrade of dickens Canadian cover and gas companies, Encana Corporation (ECA) and Canadian natural Resources Limited (CNQ). These ii Canadian owned companies be amongst the most(prenominal) dynamic and rapidly resurrecting companies in this industry. Although the conventional crude petroleum intersection is judge to worsening by about 46% amidst 2003 and 2015; natural gas production is expected to decline by about 2.5% over the next decade, these two companies are expected to embrace growing due to their aggressive schema to obtain other companies, diversify internationally, and invest in oilsands projects for incoming oil production. The assessment of two companies most recent years monetary statements shows the fol pitiableing results: * both(prenominal) ECA and CNQ will be profitable in prospective and continue to gene stray positive operating funds flows. * both companies appear to be attractive for i nvestment. Comparatively, CNQ seems to be more(prenominal) attractive bonny based on the open foodstuff price and P/E ratio. * Both companies appear liquid. However, ECA has high liquid than CNQ. * The bodily process ratios provide evidence that both companies come a tidy control of their business components. * The debt, interest coverage, and funds flow ratios doom that both companies appear to be low long-term solvency risk. Their solvency dress supports their growth strategy.

The companies have available the resources to grow and respond to competitive pressures. We use FASP to prepare pro forma monet ary statements, including the projected sle! ep sheet, the projected income statement and the implied statement of property flows for two companies. few assumptions were applied in forecasting the two companies pro forma financial statements. Especially, we assume the sale growth rate in the future for both companies is 5% based on the two companies historic growth rate , industry environs and the two companies oil and... If you want to get a near essay, order it on our website: OrderCustomPaper.com

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