Final work improved 6_revised (1)

FINANICAL ANALYSIS

31-Dec-14 31-Dec-13 31-Dec-12

Cash And Cash Equivalents 1,480,000 6,066,000 4,637,000

Short Term Investments - - 2,343,000

Net Receivables 2,481,000 1,609,000 1,245,000

Inventory - - -

Other Current Assets 2,537,000 330,000 746,000

6,498,000 8,005,000 8,971,000

- - -

36,296,000 28,447,000 27,316,000

6,303,000 5,858,000 6,079,000

- - -

- - -

1,540,000 567,000 960,000

- - -

50,637,000 42,877,000 4,332,600

Accounts Payable 2,130,000 1,248,000 1,451,000

Short/Current Long Term Debt 1,432,000 4,066,000 3,189,000

Other Current Liabilities 2,373,000 1,341,000 1,363,000

5,935,000 6,655,000 6,003,000

9,830,000 7,956,000 8,455,000

2,287,000 2,974,000 2,897,000

6,244,000 4,793,000 4,693,000

4,802,000 - -

- - -

29,098,000 22,378,000 22,048,000

- - -

- - -

- - -

41,000 41,000 41,000

16,631,000 15,410,000 15,778,000

- - -

4,088,000 3,780,000 3,688,000

779,000 1,268,000 1,771,000

21,539,000 20,499,000 21,278,000

15,236,000 14,641,000 15,199,000 Net Tangible Assets

DEVON ENERGY CORP

Balance Sheet

Common Stock

Retained Earnings

Treasury Stock

Capital Surplus

Other Stockholder Equity

Stockholders' Equity

Misc Stocks Options Warrants

Redeemable Preferred Stock

Preferred Stock

Negative Goodwill

Total Stockholder Equity

Total Current Liabilities

Long Term Debt

Other Liabilities

Deferred Long Term Liability Charges

Minority Interest

Liabilities

Current Liabilities

Total Liabilities

Accumulated Amortization

Other Assets

Deferred Long Term Asset Charges

Total Assets

Total Current Assets

Long Term Investments

Property Plant and Equipment

Goodwill

Intangible Assets

Period Ending

Assets

Current Assets

FINANICAL ANALYSIS

42,004 41,639 41,274

19,566,000 10,397,000 9,501,000

2,332,000 2,268,000 2,074,000

17,234,000 8,129,000 7,427,000

Research Development - - -

Selling General and Administrative 8,290,000 2,743,000 2,457,000

Non Recurring 1,999,000 2,030,000 2,098,000

Others 3,319,000 2,780,000 2,811,000

Total Operating Expenses - - -

4,698,000 567,000 74,000

Total Other Income/Expenses Net 959,000 (10,000) (8,000)

Earnings Before Interest And Taxes 4,585,000 566,000 53,000

Interest Expense 526,000 417,000 370,000

Income Before Tax 4,059,000 149,000 (317,000)

Income Tax Expense 2,368,000 169,000 (132,000)

Minority Interest (84,000) - -

Net Income From Continuing Ops 1,691,000 (20,000) (185,000)

Discontinued Operations - - (21,000)

Extraordinary Items - - -

Effect Of Accounting Changes - - -

Other Items - - -

1,607,000 (20,000) (206,000)

- - -

1,607,000 (20,000) (206,000)

Net Income

Preferred Stock And Other Adjustments

Net Income Applicable To Common Shares

Non-recurring Events

Operating Income or Loss

Income from Continuing Operations

Gross Profit

Operating Expenses

Period Ending

Total Revenue

DEVON ENERGY CORP

Income Statement

Cost of Revenue

FINANICAL ANALYSIS

31-Dec-14 31-Dec-13 31-Dec-12

1,607,000 -20,000 -206,000

3,319,000 2,780,000 2,811,000

1,263,000 2,803,000 2,332,000

- - -

79,000 161,000 105,000

- - -

-371,000 -288,000 -86,000

5981000 5436000 4956000

-13,450,000 -6,758,000 -8,225,000

57,000 2,343,000 -840,000

5,209,000 416,000 1,539,000

-8,184,000 -3,999,000 -7,526,000

-621,000 -348,000 -324,000

503,000 3,000 27,000

-2,234,000 361,000 1,921,000

-2,000 4,000 5,000

-2,354,000 20,000 1,629,000

-29,000 -28,000 23,000

-4,586,000 1,429,000 -918,000Change In Cash and Cash Equivalents

Net Borrowings

Other Cash Flows from Financing Activities

Total Cash Flows From Financing Activities

Effect Of Exchange Rate Changes

Total Cash Flows From Investing Activities

Financing Activities, Cash Flows Provided By or Used In

Dividends Paid

Sale Purchase of Stock

Investing Activities, Cash Flows Provided By or Used In

Capital Expenditures

Investments

Other Cash flows from Investing Activities

Changes In Inventories

Changes In Other Operating Activities

Total Cash Flow From Operating Activities

Operating Activities, Cash Flows Provided By or Used In

Depreciation

Adjustments To Net Income

Changes In Accounts Receivables

Changes In Liabilities

DEVON ENERGY CORP

Statement of Cash Flows

Period Ending

Net Income

FINANICAL ANALYSIS

Historical Financial Information: YE 2014 YE 2013 YE 2012

(millions of USD)

Revenue Growth (%)

Revenues 19,566,000 10,397,000 9,501,000

Cost of sales 2,332,000 2,268,000 2,074,000

Selling, general and administrative expenses 4,971,000 (37,000) (354,000)

Research and development expenses - - -

Operating costs and expenses 5,318,000 4,810,000 4,909,000

Reported Operating Profit (EBIT) 6,945,000 3,356,000 2,872,000

Net Interest Expense 526,000 417,000 370,000

Other income/(loss) net 959,000 (10,000) (8,000)

Depreciation, amortization and impairment losses 3,319,000 2,780,000 2,811,000

Debt prepayment premiums and charges and other items

EBITDA 2,141,000 169,000 (301,000)

Add back: Stock based compensation net of tax

Add back: Revenue recognition adjustments

Add back: Other

Adjusted EBITDA

TTM Adjusted EBITDA 2,141,000 169,000 (301,000)

Net Interest Expense

Net Capital Expenditures (13,450,000) (6,758,000) (8,225,000)

Cash Flow from Changes in Working Capital Accounts

Free Cash Flow

TTM Free Cash Flow (11,309,000) (6,589,000) (8,526,000)

Fiscal Year Ended,

FINANICAL ANALYSIS

Period Ending 31-Dec-14 31-Dec-13

Assets

Current Assets

Cash And Cash Equivalents 1,480,000 3% 6,066,000.00 14%

Short Term Investments - -

Net Receivables 2,481,000 5% 1,609,000.00 4%

Inventory - -

Other Current Assets 2,537,000 5% 330,000.00 1%

Total Current Assets 6,498,000 13% 8,005,000.00 19%

Long Term Investments - -

Property Plant and Equipment 36,296,000 72% 28,447,000.00 66%

Goodwill 6,303,000 12% 5,858,000.00 14%

Intangible Assets - -

Accumulated Amortization - -

Other Assets 1,540,000 3% 567,000.00 1%

Deferred Long Term Asset Charges - -

Total Assets 50,637,000 100% 42,877,000.00 100%

Liabilities

Current Liabilities

Accounts Payable 2,130,000 4% 1,248,000.00 3%

Short/Current Long Term Debt 1,432,000 3% 4,066,000.00 9%

Other Current Liabilities 2,373,000 5% 1,341,000.00 3%

Total Current Liabilities 5,935,000 12% 6,655,000.00 16%

Long Term Debt 9,830,000 19% 7,956,000.00 19%

Other Liabilities 2,287,000 5% 2,974,000.00 7%

Deferred Long Term Liability Charges 6,244,000 12% 4,793,000.00 11%

Minority Interest 4,802,000 9% -

Negative Goodwill - -

Total Liabilities 29,098,000 57% 22,378,000.00 52%


Misc Stocks Options Warrants - -

Redeemable Preferred Stock - -

Preferred Stock - -

Common Stock 41,000 0% 41,000.00 0%

Retained Earnings 16,631,000 33% 15,410,000.00 36%

Treasury Stock - -

Capital Surplus 4,088,000 8% 3,780,000.00 9%

Other Stockholder Equity 779,000 2% 1,268,000.00 3%

Total Stockholder Equity 21,539,000 43% 20,499,000.00 48%

Net Tangible Assets 15,236,000 14,641,000.00

DEVON ENERGY CORP

Balance Sheet

FINANICAL ANALYSIS

31-Dec-14 31-Dec-13

19,566,000 100% 10,397,000 100%

2,332,000 12% 2,268,000 22%

17,234,000 88% 8,129,000$ 78%

Research Development - -

Selling General and Administrative 8,290,000 42% 2,743,000 26%

Non Recurring 1,999,000 10% 2,030,000 20%

Others 3,319,000 17% 2,780,000 27%

Total Operating Expenses - -

4,698,000 24% 567,000 5%

Total Other Income/Expenses Net 959,000 5% (10,000) 0%

Earnings Before Interest And Taxes 4,585,000 23% 566,000 5%

Interest Expense 526,000 3% 417,000 4%

Income Before Tax 4,059,000 21% 149,000 1%

Income Tax Expense 2,368,000 12% 169,000 2%

Minority Interest (84,000) 0% -

Net Income From Continuing Ops 1,691,000 9% (20,000) 0%

Discontinued Operations - -

Extraordinary Items - -

Effect Of Accounting Changes - -

Other Items - -

1,607,000 8% (20,000) 0%

- -

1,607,000 8% (20,000) 0%

Net Income






Gross Profit

Operating Expenses

DEVON ENERGY CORP

Income Statement

Period Ending

Total Revenue

Cost of Revenue

FINANICAL ANALYSIS

FINANCIAL ANALYSIS

Ratio Analysis YE 2014 YE 2013 YE 2012

Liquidity Ratios

Current Ratio 1.0949 1.2029 1.4944

Quick Ratio 1.0949 1.2029 1.4944

Asset Management Ratios

Inventory Turnover (Total COGS/Inventories) N/A N/A N/A

Accounts Receivable Turnover (Net Sales/AR) 7.8863 6.4618 7.6313

Days Sales Outstanding 46.2826 56.4860 47.8292

Fixed Assets Turnover 0.5391 0.3655 0.3478

Total Assets Turnover 0.3864 0.2425 2.1929

Debt Management Ratios

Debt Ratio (Total debt-to-assets) 0.5746 0.5219 5.0889

Debt to Equity Ratio 1.3509 1.0917 1.0362

Liabilities-to-assets ratio

Times-interest-earned ratio 8.7167 1.3573 0.1432

EBITDA coverage ratio 15.0266 8.0240 7.7405

Profitability Ratios

Profit Margin (Operating) 0.2343 0.0544 0.0056

Profit Margin (NET) 0.0821 -0.0019 -0.0217

Basic Earning Power

Return on Assets 0.0317 -0.0005 -0.0475

Return on Equity 0.0746 -0.0010 -0.0097

Market Value Ratios

Earnings per share 3.9679 -0.0498 -0.5150

Price-to-earnings ratio 15.3608 -1220.8740 -97.7282

Cash flow per share 14.7679 13.5224 12.3900

Price-to-cash flow ratio 4.1272 4.4918 4.0621

Book Value per share (SE/#of shares) 53.1827 50.9925 53.1950

Market-to-book ratio 1.1460 1.1912 0.9461

Dec 31 2012 #of shares in thousands

50.33 400000.00

Dec 31 2013

60.74 402000.00

Dec 31 2014

60.95 405000.00

compare with peer benchmark

Fiscal Year Ended,

FINANCIAL ANALYSIS

Calculation

1.8316 1.8075 1.6484 2.0389

1.8316 1.8075 1.6484 2.0389

0.0000

N/A N/A N/A

7.8091 9.3699 4.4157 9.6417

53.1566 38.9547 82.6587 37.8563

0.5692 0.6443 0.4451 0.6182

0.4529 0.5141 0.3257 0.5188

0.5501 0.5533 0.6066 0.4905

1.2795 1.3338 1.5422 0.9626

0.0000

23.6472 36.9551 8.1907 25.7958

42.1070 69.7079 10.9767 45.6364

0.3680 0.1570 0.6588 0.2881

0.2254 0.0915 0.4230 0.1617

0.5953 0.5829 0.6421 0.5610

0.2094 0.1134 0.3502 0.1646

4.2596 2.8822 4.5764 5.3201

9.1796 6.7170 3.4350 17.3868

8.7828 6.9673 3.5983 15.7828

4.3361 2.7787 4.3688 5.8608

23.6008 25.4138 13.0668 32.3216

1.6089 0.7618 1.2030 2.8619

EOG 2014Industry Avg

2014CHK 2014 ECA 2014

31-Dec-14 31-Dec-13

Cash And Cash Equivalents 4,146,000 912,000


Net Receivables 2,236,000 2,445,000

Inventory - -

Other Current Assets 1,086,000 299,000

7,468,000 3,656,000

271,000 481,000

32,515,000 37,134,000

- -

- -

- -

497,000 511,000

- -

40,751,000 41,782,000

Accounts Payable 2,406,000 1,796,000

Short/Current Long Term Debt 396,000 208,000

Other Current Liabilities 3,061,000 3,511,000

5,863,000 5,515,000

11,154,000 12,886,000

1,126,000 1,389,000

4,403,000 3,852,000

1,302,000 2,145,000

- -

22,546,000 23,642,000

- -

- -

3,062,000 3,062,000

7,000 7,000

1,483,000 688,000

(37,000.00)$ (46,000.00)$

12,531,000 12,446,000

(143,000.00)$ (162,000.00)$

16,903,000 15,995,000

16,903,000 15,995,000

Chesapeake Energy Corporation

Net Tangible Assets

Treasury Stock

Capital Surplus





Preferred Stock

Common Stock

Retained Earnings

Negative Goodwill

Total Liabilities



Long Term Debt

Other Liabilities


Minority Interest

Total Assets

Liabilities

Current Liabilities

Intangible Assets


Other Assets





Goodwill

Period Ending

Assets

Current Assets

31-Dec-14 31-Dec-13

Cash And Cash Equivalents 338,000 2,566,000


Net Receivables 1,816,000 1,668,000

Inventory - -

Other Current Assets 707,000 56,000

2,861,000 4,290,000

138,000 214,000

18,015,000 10,035,000

2,917,000 1,644,000

- -

- -

394,000 526,000

296,000 939,000

24,621,000 17,648,000

Accounts Payable 2,386,000 1,927,000

Short/Current Long Term Debt 20,000 1,025,000

Other Current Liabilities - -

2,406,000 2,952,000

7,340,000 6,124,000

3,354,000 3,420,000

1,836,000 5,000

- -

- -

14,936,000 12,501,000

- -

- -

- -

2,450,000 2,445,000

5,188,000 2,003,000

- -

1,358,000 15,000

689,000 684,000

9,685,000 5,147,000

6,768,000 3,503,000 Net Tangible Assets

Encana Corporation

Treasury Stock

Capital Surplus





Preferred Stock

Common Stock

Retained Earnings

Negative Goodwill

Total Liabilities



Long Term Debt

Other Liabilities


Minority Interest

Total Assets

Liabilities

Current Liabilities

Period Ending

Assets

Current Assets




Goodwill

Intangible Assets


Other Assets


31-Dec-14 31-Dec-13 31-Dec-12

Cash And Cash Equivalents 2,087,213 1,318,209 876,435

Short Term Investments - - -

Net Receivables 1,870,550 1,908,256 1,685,781

Inventory 706,597 563,268 683,187

Other Current Assets 751,661 282,282 344,481

5,416,021 4,072,015 3,589,884

- - -

29,172,644 26,148,836 23,337,681

- - -

- - -

- - -

174,022 353,387 409,013

- - -

34,762,687 30,574,238 27,336,578

Accounts Payable 3,202,983 2,464,578 2,309,671

Short/Current Long Term Debt 6,579 134,121 414,196

Other Current Liabilities 174,746 263,017 200,191

3,384,308 2,861,716 2,924,058

5,903,354 5,906,642 5,905,602

939,497 865,067 894,758

6,822,946 5,522,354 4,327,396

- - -

- - -

17,050,105 15,155,779 14,051,814

- - -

- - -

- - -

205,492 202,732 202,720

14,763,098 12,168,277 10,175,631

(70,102.00)$ (15,263.00)$ (33,822.00)$

2,837,150 2,646,879 2,500,340

(23,056.00)$ 415,834 439,895

17,712,582 15,418,459 13,284,764

17,712,582 15,418,459 13,284,764


Net Tangible Assets

EOG Resources, Inc.

Common Stock

Retained Earnings

Treasury Stock

Capital Surplus





Preferred Stock


Minority Interest

Negative Goodwill

Total Liabilities

Current Liabilities


Long Term Debt

Other Liabilities


Total Assets

Liabilities

Period Ending

Assets

Current Assets




Goodwill

Intangible Assets


Other Assets

FINANCIAL ANALYSIS

31-Dec-14 31-Dec-13

20,951,000 17,506,000

13,875,000 11,356,000

7,076,000 6,150,000


Selling General and Administrative 554,000 686,000

Non Recurring 329,000 794,000

Others 2,915,000 2,903,000


3,477,000 2,069,000

Total Other Income/Expenses Net 11,000 (98,000.00)$

Earnings Before Interest And Taxes 3,289,000 1,669,000

Interest Expense 89,000 227,000

Income Before Tax 3,200,000 1,442,000

Income Tax Expense 1,144,000 548,000

Minority Interest (139,000.00)$ (170,000.00)$

Net Income From Continuing Ops 1,917,000 724,000




Other Items - -

1,917,000 724,000

(644,000.00)$ (250,000.00)$

1,273,000 474,000

Net Income



Chesapeake Energy Corporation



Operating Expenses


Period Ending

Total Revenue

Cost of Revenue

Gross Profit

FINANCIAL ANALYSIS

31-Dec-14 31-Dec-13

8,019,000 5,858,000

3,431,000 2,776,000

4,588,000 3,082,000


Selling General and Administrative 460,000 573,000

Non Recurring - 21,000

Others 1,797,000 1,618,000


2,331,000 870,000

Total Other Income/Expenses Net 2,952,000 (319,000.00)$

Earnings Before Interest And Taxes 5,283,000 551,000


Income Before Tax 4,629,000 (12,000.00)$

Income Tax Expense 1,203,000 (248,000.00)$

Minority Interest (34,000.00)$ -

Net Income From Continuing Ops 3,392,000 236,000




Other Items - -

3,392,000 236,000

- -

3,392,000 236,000

Net Income



Encana Corporation


Period Ending

Total Revenue

Cost of Revenue

Gross Profit


Operating Expenses


FINANCIAL ANALYSIS

31-Dec-14 31-Dec-13

18,035,340 14,487,118

2,534,389 2,066,893

15,500,951 12,420,225


Selling General and Administrative 5,285,634 4,621,096

Non Recurring 976,453 522,942

Others 3,997,041 3,600,976


5,241,823 3,675,211

Total Other Income/Expenses Net (45,050.00)$ (2,865.00)$

Earnings Before Interest And Taxes 5,196,773 3,672,346


Income Before Tax 4,995,315 3,436,886

Income Tax Expense 2,079,828 1,239,777

Minority Interest - -

Net Income From Continuing Ops 2,915,487 2,197,109




Other Items - -

2,915,487 2,197,109

- -

2,915,487 2,197,109

Net Income



EOG Resources, Inc.



Operating Expenses


Period Ending

Total Revenue

Cost of Revenue

Gross Profit

FINANCIAL ANALYSIS

Tax rate 40% !

Net operating working capital

2014 NOWC =

Operating

current

assets -

Operating

current

liabilities

2014 NOWC = $6,498,000 - $4,503,000

2014 NOWC = $1,995,000

2013 NOWC =

Operating

current

assets -

Operating

current

liabilities

2013 NOWC = $8,005,000 - $2,589,000

2013 NOWC = $5,416,000

Total net operating capital

2014 TOC = NOWC + Fixed assets

2014 TOC = $1,995,000 + $36,296,000

2014 TOC = $38,291,000

2013 TOC = NOWC + Fixed assets

2013 TOC = $5,416,000 + $28,447,000

2013 TOC = $33,863,000

Investment in total net operating capital

2014 2013

2014Inv. In TOC = TOC - TOC

2014Inv. In TOC = $38,291,000 - $33,863,000

2014Inv. In TOC = $4,428,000

Net operating profit after taxes

2014 NOPAT = EBIT x ( 1 - T )

2014 NOPAT = $4,585,000 x 60%

2014 NOPAT = $2,751,000

Free cash flow

2014 FCF = NOPAT - Net investment in operating capital

2014 FCF = $2,751,000 - $4,428,000

2014 FCF = -$1,677,000

Return on invested capital

2014 ROIC = NOPAT / Total net operating capital

2014 ROIC = $2,751,000 / $38,291,000

2014 ROIC = 7.2%

b. Identify the number of shares outstanding at the end of the year, the year-end closing

stock price per share, and assume that the after-tax cost of capital is 8%. Calculate EVA and

MVA for the most recent year.

Key Input Data

FINANCIAL ANALYSIS

FINANCIAL ANALYSIS

Additional Input Data

Stock price per share 60.95

# of shares (in thousands) 405000

After-tax cost of capital 8.0%

Market Value Added

MVA = Stock price x # of shares - Total common equity

MVA = $60.95 x 405,000 - $21,539,000

MVA = $24,684,750 - $21,539,000

MVA = $3,145,750

Economic Value Added

EVA = NOPAT - (Operating Capital x After-tax cost of capital)

EVA = $2,751,000 - $38,291,000 x 8%

EVA = $2,751,000 - $3,063,280

EVA = -$312,280

b. Identify the number of shares outstanding at the end of the year, the year-end closing

stock price per share, and assume that the after-tax cost of capital is 8%. Calculate EVA and

MVA for the most recent year.

FINANCIAL ANALYSIS

FINANICAL ANALYSIS

Brief Analysis of Devon Energy CorporationDevon Corporation is an independent leading gas exploration and production company which operates onshore of Canada and North America. The company’s head office is located in Oklahoma City, OK and it is one of well renowned fortune 500 company. Devon Energy is listed within the New York Stock Exchange, and is part of the Oil and Gas Industry, which has an Oligopolistic market Structure.

Dominant PlayerBy considering the figures for the share of Gas Sales Segment Market Share, Natural Gas Liquid Segment Market Share and Oil Sales Segment Market Share which are 14.61%, 36.8% and 17.53% respectively it can be ascertain that Devon Energy is a dominant player within its industry.

Competitors of Devon Energy CorporationsFollowings are the some major competitors of the Devon Corporation;Abraxas Petroleum CorporationsAndarako Petroleum CorporationsApache CorporationsBP Plc

FINANICAL ANALYSIS

FINANCIAL ANALYSIS

2014 2013 2012

1.27/(1+(1-0.4)*(1.3509)) 1.27/(1+(1-0.4)*(1.0917)) 1.27/(1+(1-0.4)*(1.0362))

0.701448187 0.767362328 0.783119157

2014 2013 2012

1.04/(1+(1-0.4)*(1.3509)) 1.04/1+(1-0.4)*(1.0917 1.04/1+(1-0.4)*(1.0362)

0.574414263 0.628391198 0.641294428

Note

Part (a) Unlever Firms Beta by using the Regression model Beta

Part (b) Unlever Firms Beta by using the publishing beta of Yahoo Finance

Tax rate has been assumed 40%

FINANCIAL ANALYSIS

2015 2016 2017 2018 2019

Net Income 1,878,336 2,254,003 2,704,804 3,245,765 3,894,918

Depreciations 7,129,600 10,429,600 13,729,600 17,129,600 20,829,600

Changes in Working Captial 7,648 923,730 1,108,476 1,330,171 1,596,205

Operating Cash Flows 9,015,584 13,607,333 17,542,879 21,705,535 26,320,722

Capital Expenditures (35,000,000) (68,000,000) (101,000,000) (135,000,000) (172,000,000)

Interest 810,615 834,933 859,981 885,781 912,354

Unleverd Free Cash Flows (25,173,801) (53,557,734) (82,597,139) (112,408,684) (144,766,923)

Unleverd Free Cash Flows

FINANCIAL ANALYSIS

2014 2015 2016 2017 2018 2019

Equity $21,539,000 $22,202,230 $22,868,297 $23,554,346 $24,260,977 $24,988,806

Long Term Debt $9,830,000 $10,132,686 $10,436,667 $10,749,767 $11,072,260 $11,404,427

Interest Rate 0.075 0.080 0.080 0.080 0.080 0.080

Inerest Expense $737,250 $810,615 $834,933 $859,981 $885,781 $912,354

2014 2015 2016 2017 2018 2019

Net Receivables $2,481,000 $2,573,063 $3,087,676 $3,705,211 $4,446,253 $5,335,503

Turnover 10

In Days 38 40 40 40 40 40

Accounts Payable $2,130,000 $2,045,585 $2,454,702 $2,945,643 $3,534,771 $4,241,725

Turnover 1

In Days 264 265 265 265 265 265

Inventory N/A N/A N/A N/A N/A N/A

turnover N/A N/A N/A N/A N/A N/A

In days N/A N/A N/A N/A N/A N/A

Net Working Capital $4,611,000 $4,618,648 $5,542,378 $6,650,853 $7,981,024 $9,577,229

Change in Working Capital $7,648 $923,730 $1,108,476 $1,330,171 $1,596,205

Capital Structures

Working Capital

FINANCIAL ANALYSIS

Beta of the firm 1.04

Risk Free Return 3.07%

Market Risk Premium 5.78%

Return on Equity by CAPM 10.41%

Retun on Debt 3.46%

Propotion of Debt 27.00%

Propotion of Equity 73%

Average Tax Rate of the firm

WACC =[Cost of Debt x % Debt x (1 – Tax Rate)] + Cost of Equity x % Equity

9.83/36.17 = 0.27

Relevnat Data for the Calculation of WACC

WACC= (0.27)(0.346)(0.42) + (0.73)(0.1041) = 0.0798

WACC = 7.98%

1-0.27 = 0.73

58%

FINANCIAL ANALYSIS

31-Dec-14 % 31-Dec-15 31-Dec-16 31-Dec-17 31-Dec-18 31-Dec-19

19,566,000$ 100% 20,152,980$ 20,757,569$ 21,380,296$ 22,021,705$ 22,682,357$

2,332,000$ 12% 2,418,358$ 2,490,908$ 2,565,636$ 2,642,605$ 2,721,883$

17,234,000$ 88% 17,734,622 18,266,661 18,814,661 19,379,101 19,960,474

Operating Expenses

Research Development -

Selling General and Administrative 8,290,000$ 42% 8,464,252 8,718,179 8,979,725 9,249,116 9,526,590

Non Recurring 1,999,000$ 10% 2,015,298 2,075,757 2,138,030 2,202,171 2,268,236

Others 3,319,000$ 17% 3,426,007 3,528,787 3,634,650 3,743,690 3,856,001

Total Operating Expenses -

4,698,000$ 24% 4,836,715 4,981,817 5,131,271 5,285,209 5,443,766


Total Other Income/Expenses Net 959,000$ 5% 1,007,649 1,037,878 1,069,015 1,101,085 1,134,118

Earnings Before Interest And Taxes 4,585,000$ 23% 4,635,185 4,774,241 4,917,468 5,064,992 5,216,942

Interest Expense 526,000$ 3% 604,589 622,727 641,409 660,651 680,471

Income Before Tax 4,059,000$ 21% 4,232,126 4,359,090 4,489,862 4,624,558 4,763,295

Income Tax Expense 2,368,000$ 12% 2,418,358 2,490,908 2,565,636 2,642,605 2,721,883

Minority Interest 84,000$ 0%

Net Income From Continuing Ops 1,691,000$ 9%


Discontinued Operations -

Extraordinary Items -

Effect Of Accounting Changes -

Other Items -

1,607,000$ 8% 1,612,238 1,660,606 1,710,424 1,761,736 1,814,589

-

1,607,000$ 8% 1,612,238 1,660,606 1,710,424 1,761,736 1,814,589

Cell C5 showing the revunues of 2014 has been mulitplied by 1.03 "3%" growth rate to get the forcasted figure of sales in 2015 in Cell E5 .

Simliarly Cell E5 has been multiplied by 1.03 "3% growth rate to get the forcasted figure of revenues in 2016 in Cell F 5 and So on.

Rest of figures for itmes like Cost of Sales to Net Income have been calculated by multilplying the respective % to Respecive Slaes in that year.

Gross Profit

DEVON ENERGY CORP

Forcasted Income Statement for Next Five years

Period Ending

Total Revenue

Cost of Revenue


Net Income



Note: It has been forcasted that the growth rate for the sales revenues would be 3% for upcoming five years.

FINANCIAL ANALYSIS

Period Ending 31-Dec-14 %

Assets

Current Assets

Cash And Cash Equivalents 1,480,000 2.92%

Short Term Investments -

Net Receivables 2,481,000 4.90%

Inventory -

Other Current Assets 2,537,000 5.01%

Total Current Assets 6,498,000 12.83%

Long Term Investments -

Property Plant and Equipment 36,296,000 71.68%

Goodwill 6,303,000 12.45%

Intangible Assets -

Accumulated Amortization -

Other Assets 1,540,000 3.04%

Deferred Long Term Asset Charges -

0.00%

Total Assets 50,637,000 100.00%

0.00%

Liabilities 0.00%

Current Liabilities 0.00%

Accounts Payable 2,130,000 4.21%

Short/Current Long Term Debt 1,432,000 2.83%

Other Current Liabilities 2,373,000 4.69%

0.00%

Total Current Liabilities 5,935,000 11.72%

Long Term Debt 9,830,000 19.41%

Other Liabilities 2,287,000 4.52%

Deferred Long Term Liability Charges 6,244,000 12.33%

Minority Interest 4,802,000 9.48%

Negative Goodwill -

0.00%

Total Liabilities 29,098,000 57.46%

0.00%

Stockholders' Equity 0.00%

Misc Stocks Options Warrants -

Redeemable Preferred Stock -

Preferred Stock -

Common Stock 41,000 0.08%

Retained Earnings 16,631,000 32.84%

Treasury Stock -

Capital Surplus 4,088,000 8.07%

Other Stockholder Equity 779,000 1.54%

0.00%

Total Stockholder Equity 21,539,000 42.54%

0.00%

Net Tangible Assets 15,236,000 30.09%

FORCASTED INCOME STATEMENT

FINANCIAL ANALYSIS

FINANCIAL ANALYSIS

31-Dec-15 31-Dec-16 31-Dec-17 31-Dec-18 31-Dec-19

Sales Sales Sales Sales Sales

20,152,980 20,757,569 21,380,296 22,021,705 22,682,357

1,525,572 1,571,339 1,618,480 1,667,034 1,717,045

- - - - -

2,557,395 2,634,117 2,713,141 2,794,535 2,878,371

- - - - -

2,615,119 2,693,573 2,774,380 2,857,612 2,943,340

- - - - -

- 6,899,030 7,106,000 7,319,180 7,538,756

- - - - -

37,413,629 38,536,038 39,692,119 40,882,883 42,109,369

6,497,082 6,691,995 6,892,755 7,099,537 7,312,523

- - - - -

- - - - -

1,587,420 1,635,042 1,684,094 1,734,616 1,786,655

- - - - -

- - - - -

52,196,218 53,762,105 55,374,968 57,036,217 58,747,303

- - - - -

- - - - -

- - - - -

2,195,587 2,261,455 2,329,298 2,399,177 2,471,153

1,476,094 1,520,377 1,565,988 1,612,968 1,661,357

2,446,070 2,519,452 2,595,035 2,672,886 2,753,073

- - - - -

6,117,751 6,301,284 6,490,322 6,685,032 6,885,583

10,132,686 10,436,667 10,749,767 11,072,260 11,404,427

2,357,421 2,428,144 2,500,988 2,576,018 2,653,299

6,436,266 6,629,354 6,828,234 7,033,081 7,244,074

4,949,864 5,098,359 5,251,310 5,408,850 5,571,115

- - - - -

- - - - -

29,993,988 30,893,808 31,820,622 32,775,240 33,758,497

- - - - -

- - - - -

- - - - -

- - - - -

- - - - -

42,262 43,530 44,836 46,181 47,567

17,143,103 17,657,396 18,187,118 18,732,731 19,294,713

- - - - -

4,213,878 4,340,294 4,470,503 4,604,618 4,742,757

802,987 827,077 851,889 877,446 903,769

- - - - -

22,202,230 22,868,297 23,554,346 24,260,977 24,988,806

- - - - -

15,705,148 16,176,303 16,661,592 17,161,439 17,676,282

FORCASTED INCOME STATEMENT

FINANCIAL ANALYSIS

Note: It has been forcasted that to generate a $1 of sales it would

be required $2.59 worth of total assets for upcoming five years.(2)

Total Sales in a given period like E4 has been mulitplied by 2.59 to

get the total asset requird to incorporate such growth of revenues

in 2015 and so on.Rest of figures for itmes like Cash and

Equivalent to Stockholder's Equity have been calculated by

multilplying the respective % to Respecive total assets in that year.

figure of 2.59 is calcualted by dividing the Total Assets in year

2014 by the toal revenues of 2014 = 50637000/19566000."2.59 $"

This shows the asset required to produce the sales of 1$.

FINANCIAL ANALYSIS

Old Assets 36,296,000 36,296,000 36,296,000 36,296,000 36,296,000

New captial Expendiures 35,000,000 68,000,000 101,000,000 135,000,000 172,000,000

Total Assets 71,296,000 104,296,000 137,296,000 171,296,000 208,296,000

2,015 2,016 2,017 2,018 2,019

Capital Expendiures 35,000,000 68,000,000 101,000,000 135,000,000 172,000,000

Dereciation Total Deprecitaon

2015 3,500,000 3,500,000

2016 6,800,000 6,800,000

2017 10,100,000 10,100,000

2018 13,500,000 13,500,000

2019 17,200,000 17,200,000

Old Assets 36,296,000 36,296,000 36,296,000 36,296,000 36,296,000 Total Depreciation

Depreciation

2015 3,629,600 3,629,600

2016 3,629,600 3,629,600

2017 3,629,600 3,629,600

2018 3,629,600 3,629,600

2019 3,629,600 3,629,600

Total Depreciation

2015 7,129,600

2016 10,429,600

2017 13,729,600

2018 17,129,600

2019 20,829,600

Total Assets

Final work improved 6_revised (1)

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