Table of Contents
Oil & Gas Industry Analysis
Apache Managing Risk Analysis
Porter 5 Forces Model
Apache Corporation is one of the world largest independent energy companies in the world, and is headquartered in Houston, TX. Apache has gas exploration and production company with operations in six countries, divided into seven operating regions which are Canada, Egypt, Australia, offshore the United Kingdom in the North Sea and Argentina and also to include the United States. Apache was formed in 1954 in Minneapolis, Minnesota by Truman Anderson, Raymond Plank, and Charles Arnao.
In 1956, Apache was one of the first …show more content…
There are many financial ratios that analysts use to dissect a company’s financial statements so they are able to compare them to their competitors. These ratios look at the firm’s liquidity, profitability, and capital structure. Apache has demonstrated strong consistent growth over the last five years.
Oil and Gas Industry Analysis
The oil and gas business is highly competitive in the exploration for and acquisitions of reserves, the acquisition of oil and gas leases, equipment and personnel required to find and produce reserves, and in the gathering and marketing of oil, gas, and natural gas liquids. The competitors include national oil companies, major integrated oil and gas companies, other independent oil and gas companies, and participants in other industries supplying energy and fuel to industrial, commercial, and individual consumers.
Apache has a balanced production mix between oil and gas, which gives them a strong competitive position relative to many of our competitors who do not possess similar geographic and production diversity.
Apache’s main competitors consist of Occidental Petroleum, Anadarko, Hess Corp and Marathon Oil Corp. All of these companies compete in a very competitive industry where commodities are sold. Apache is one of the largest of the independent oil companies. In an industry with high entry barriers, it is impossible to build a corporation with 24.3 billion in assets
Financial statements paint a picture of financial health of an organization. Important aspects of the financial statement of a health care organization are ratios. Analysis of ratios show how two numbers relate or compare to one another. Ratios are a way for organizations to make comparison. These comparisons not only encompass what is happening presently but can also be used to make comparisons about numbers and ratios over time. Ratios are a way for organizations to compare themselves with competitors and the industry. (Finkler, Kovner, and Jones, 2007). There are four major ratios that financial statements analyze 1) liquidity 2) activity 3) leverage and 4) profitability. The financial statement for Mayo Health System
The oil and gas industry is expansive and rather complex industry consisting of oil, fossil fuels, natural gas, oil and green energy sources. Combined the above sources make-up 32% of total energy consumed worldwide.
Competition in the oil industry is separated by about 10 cents here in the US. The difference between ARCCO, Shell, Mobil, and Chevron, is between 1 and 10 cents. Oil companies don’t compete with each other. With gas prices constantly fluctuating towards the $3 mark, there is little room to raise prices. Consumers will not pay 25 cents more for a gallon of gas. Although Chevron Texaco and ExxonMobil make have a slight difference in price at the pump, the will not try to do anything to rock the boat.
Energy Inc. (Energy, or the Company), which operates in the oil industry, is a U.S. subsidiary of a U.K. entity that prepares its financial statements in accordance with IFRS and U.S. GAAP. A draft law in a country where Energy operates in, which requires a cleanup of land already contaminated, will possibly be enacted shortly after the year-end.
200 Apaches massacred, 100 more murdered, and 148 laying dead at Chihuahua Mexico, was something the Chiricahua Apache tribe, and many other tribes, lived through on a regular basis (Hoxie 1). All of the previously mentioned, in addition to wars and being parted from their own land, were some of the consequences due to a country seeking to expand and conquer new territory, regardless of what or who they had to eliminate in order to accomplish this goal. However, if Americans would have taken a more peaceful path in order to conquer the land of the Natives, if there would have been respect and honesty, and the many treaties made would have been honored, then these massacres would have been prevented and it would have been a dramatically
With few exceptions, a great company must have strong competitiveness in its products, operation or management. Financial ratios are a valuable and easy way to interpret the
Google and Yahoo are two companies that compete in the Internet Information Provider Industry. They are perhaps two of the best known companies in that area. Because they both belong to the same industry, they are very similar in some aspects, but they also differ in some others. More specifically, they differ somewhat in their financial aspects. In order to provide a better understanding of their financial characteristics, different types of financial statement analyses are used. A horizontal analysis is used to evaluate a company's progress from period to period, a vertical analysis is used to judge against competitors, and financial ratios are used to assess a company's financial status and judge them against their main competitors as well as the average for their industry. Without doubt, these are very helpful tools that can be used by managers, auditors, investors and creditors who have an interest in evaluating the financial aspects of a company (Nobles, Mattison, and Matsumura 1010).
The world’s largest independent corporation for its production of crude oil and natural gas are to be known as the Canadian Natural Resources. It is an Energy Company that is situated in Calgary, Alberta. From the early 1980s, this company has developed from less than a 10 employees and a market capitalization of $1 billion to one employing 3700 employees with a market capitalization of $30 billion ranking number 251 on Forbes list in 2010. The emergence of rapid growth has come due to attainments and organic growths. Canadian Natural Resources (CNQ) is a large company that is operated across Western Canada, offshore West Africa and North Sea. This Energy Company deals with exploring many resources such as: mining, natural gas, oil Sands, production of crude oil and other related markets in the US, Canada and Europe. The biggest production offering nearly half of its all products is the natural gas.
In addition to the competition between the two firms addressed, fierce competition exists from other oil and gas producers, particularly ExxonMobil, the number one producer of natural gas in the United States.
Financial ratio analysis is a critical management tool that provides information on the organizational performance over a period of time. The management applies the ratios to check on the effectiveness of the strategies they employed. On the other hand, the owners and shareholders use the financial ratios to determine the effectiveness of the management in running the business. In addition the ratios can be applied to compare the company’s performance with its competitors. The financial ratios include current ratio, operating profit margin, return on assets, return on equity and debt to equity ratio.
The financial condition of an organization represents the strategy and structure. However, the use of ratios an individual can assess a company’s abilities to function and grow in an highly competitive market. The ratios and financial statement can be complex, however, financial performance of the organization can be acquired with the execution of performing these ratios from the balance sheets and statements. Most common groups to perform these anglicizes are profit ratios, liquidity ratios, activity ratios, leverage ratios, and shareholder-return ratios. With evaluating the organizations performance, these ratios are compared to the industry average over the history of the firm. When these calculation and ration reveal a deviation
One of the most reputable resources that Exxon Mobil has today is a strong brand name. Exxon Mobil operates all over the world and is recognized in every part of the world (Datamonitor, 2008). When people all over the world know who a company is, what they do, and where they are located, the company gains a unique competitive advantage over
Apache Corporation, an independent oil and gas exploration and production company founded in 1954 by Raymond Plank whose primary focus was to profit in oil. Their initial investor 's capital of $250,000 in 1954 rose to over a billion dollars in acquisitions by 2001. Acquisitions over a billion included Repsol in Egypt’s Western desert and a
Iran: Iran is stood up one the second largest proven reserve for Natural gas. As per the latest reports around 1000 Trillion cubic feet natural gas reserve after Russia. There is many gas fields inside the country but it is really spread in different areas like onshore and offshore. The main fields are South par,North pars, Kangan, Nar and Khangiran.in these south pars is showing its important role in this industry. Iran’s strategic partnership with Russia the global gas economy is watching very crucially especially the European countries and in GECF Iran stood an important role among the all countries Iran’s major export is medium-term gas export consumers like China, India and Pakistan. Qatar: As per the proven reserve Qatar standing 3rd position after Russia and Iran with more than 900 Trillion Cubic Feet. Major reserve is on the north field which is seems to be a geographical relation between Iran’s south par field. Qatar natural gas industry is mainly controlled by the Qatar gas. This company is a consortium of Exxonmobil, Mitsui and Marubeni. Qatar having an important role in this GECF and their headquarters strategically situated on Doha capital of Qatar .Qatar planning a huge increase of production in coming years by the proper planning. Qatar is largest exporter of LNG to USA this relation