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 vegetable rock oil return is judge to worsening by about 46% among 2003 and 2015; natural gas production is expected to decline by about 2.5% over the next decade, these two companies are expected to strain growing due to their aggressive schema to grease ones palms 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 prox 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 vindicatory based on the open foodstuff price and P/E ratio. * Both companies appear liquid. However, ECA has high liquid than CNQ. * The exertion ratios provide evidence that both companies come a right control of their business components. * The debt, interest coverage, and funds flow ratios read that both companies appear to be low long-term solvency risk. Their solvency coif supports their growth strategy.

The companies have available the resources to grow and respond to warring pressures. We use FASP to prepare pro forma pecuniary statements, including the projected sleep sheet, the projected income sta tement and the implied statement of propert! y flows for two companies. somewhat 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: OrderEssay.net

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