Financial Analysis Project- ECA & CNQ

1.0 Executive Summary This report presents a monetary rating 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 rock crude oil return is anticipate to worsening by about 46% mingled with 2003 and 2015; natural gas production is expected to decline by about 2.5% over the next decade, these two companies are expected to pertain growing due to their aggressive schema to purchase 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: * some(prenominal) ECA and CNQ will be profitable in future tense and continue to gene stray positive operating funds flows. * both companies appear to be attractive for investment. Comparatively, CNQ seems to be more(prenominal) attractive further based on the open foodstuff price and P/E ratio. * Both companies appear liquid. However, ECA has high liquid than CNQ. * The action at law ratios provide evidence that both companies come a considerably control of their business components. * The debt, interest coverage, and funds flow ratios intend that both companies appear to be low long-term solvency risk. Their solvency persuasion supports their growth strategy.

The companies have available the resources to grow and respond to warlike pressures. We use FASP to prepar e pro forma monetary statements, including ! the projected dimension sheet, the projected income statement and the implied statement of property flows for two companies. roughly 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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