The comparison is effectively based on the three energy companies and their respective performance in the market structure. The first is Husky Energy Inc together with its subsidiaries is one of Canada’s largest integrated energy companies with its administrative performance in Alberta and Calgary. Another company is the Talisman Energy Inc. which is a universally, diversified, upstream oil and gas company, headquartered in Canada. This company effectively operates in the various parts including North America, the parts of Southeast Asia and effectively on the North Sea respectively. In addition, the third prosperous company under comparison is the Teck Resources Limited. Nevertheless, this is a rather diversified and wider company based on the exploration of the natural resources in the context aimed at resource development agenda. It energetically explores for copper, zinc and gold in the Americas, Asia Pacific, Europe and Africa.
The first comparison is based on their strategies. In this context, the husk company strategy is to advance and maintain it production in parts of the Canadian country and improves the general practice of thermal development. In this context the Midstream and Downstream operations and extract the greatest value from production is their main aim. In the context of Talisman’s business strategy and objective is to deliver safe profitable growth. The strategy is designed to deliver 5–10% production growth through the medium term and to lead to the long-term renewal of the company. In addition, the goal of Teck Company is to be to fortify aptitude to devise, build and maneuver new projects to convert company’s large resource position into cash flow and profits.
Overall financial position
In the view of Husk Company, number of total assets rose by $4,376 million and it is 16% higher than in 2010 in this expenditure overview, it shows that the company has a greater opportunity to meet its expenditures. Plant and equipment account rose by 12% in 2011.
The graph shows that the company’s assets increased effectively from the year 2009 to 2011. This was followed hand in hand by the total equity and with an overview strategy that aimed at reducing the total long term debt. The common shares of the company also increased in the year 2011 by 38% due to the issuing of 37 million shares. The company’s operating activities doubled since 2010, and showed the estimate of $ 3,354 million in 2011.
In the context of the Talisman company, Net income was $776 million, down by 18% due to higher DD&A. The other contributing factors to then lower rate is the lower gains on asset sales, and higher operating expenses and taxes respectively. On the other hand, Production averaged to 426,000 boe/d, which showed an increase in the relevant underlying production of 9% over the previous year Proved reserves replacement was 157%. This shows that Talisman Company was lower in the income accrued as compared to the Husk Company which effectively registered $ 3,354 million.
In the context of the Teck Company the total net income on the annual view in the year 2011 was registered to be $2,668. This illustrated to be the second after Husk Company followed by the Talisman Company in that order.
There is also a general trend which illustrates that the companies’ net income has increased all throughout the three years from 2009 to 2011. This is also reflected by the total gross revenues due to the relevant enactment procedures incurred in the governance process. This financial position for the three companies is illustrated by the bar graph below with Husk company leading followed by Teck and then by Talisman company respectively.
Liquidity and capital resources
The three tables below illustrate the liquidity and capital resources for the three companies.
- Husky company
- Talisman company
- Teck company
The comparison between the liquidity, profitability and solvency of the three companies illustrates a trend in which all the three companies were more liquid than they were in the year 2010. Hence this illustrates that the companies had more assets than the liabilities of which it demarcates that they can meet the liabilities of the companies.