INTEROFFICE REPORT Questar Corporation: Energy Company Three segments of Questar operations cover resources and regulated services. Follows is the risk assessment for Questar: Resources, Lack of internal control in estimating reserve(s) revenue, Financial analysis and the market, New land developments, and the Environment. Most of the company's operations are located in the Rocky Mountain region of Wyoming, Utah, Colorado, Texas, Oklahoma, and Louisiana (5). Distribution is throughout the United States. QUESTAR OPERATIONS A multi-faceted holding company formed through reorganization in 1984 into an energy company to distinguish non-utility services (5). Crude resources from fossil fuels (oil, natural gas) are developed through drilling for interstate transmission, storage and distribution. The resource division involves gas, oil, natural gas for marketing, cost analysis of gas development, risk management, and distribution for the wholesale/retail industry (5). 1. Market Resources is the major producer of income driving segments of the business. Natural gas (nonregulated) is 86% of its focal point on evaluating crude resources for process through “gas management” (5). 2. Questar Pipeline (regulated) is responsible for transportation and storage. This includes the development of pipeline. Business is dependent on acquiring leases and the use of land. Operations at well sites can have a life of 20-40 years. 3. Questar Gas (regulated) involves retail distribution. Sales are based on seasonal usage and economic factors such as the market’s going rate (5). RISK ASSESSMENT Resources: Price Risk and Land Opportunity • Crude resources are a distinct global market. Questar is a profitable and reliable enterprise with all three segments highly revenue driven, secured by federal and state government regulations. Wholesale figures fluctuate within the industry by a minimal amount for distribution nationwide, but this type of commodity requires prices to be set by the market nationwide and not the company. • Competition in this industry is the ability to secure land rights for drilling. Government regulations have restricted areas containing crude resources for development by 40% (7). 90% o... ... middle of paper ... ...rve%20Valuation.pdf> (8 October 2004). Industry changes that may affect energy resources financial reporting. External 10) Kieso, Donald E., Weygandt, Jerry J., Warfield, Terry D. Intermediate Accounting. Hoboken, NJ: Current Developments for Audit Committees 2002. Pricewaterhouse Coopers analysis on recognizing revenue. External 11) “Natural Gas Market Prices.” California Energy Commission. 2 April 2003. http://www.energy .ca.gov/2003_price_spikes/2003-04-02_natgas_execsum.html> (8 October 2004). Executive summary on 180% increase within two days on the national spot market for natural gas. External 12) “Questar Goes Live with the SPL Customer Care and Billing Solution.” Factiva Online September 2004. http://80-global.factiva.com.libproxy.sdsu.edu/en/arch/display.asp> (8 October 2004). Accounting changes in billing customers. External 13) Standard & Poor’s. Register of Corporations, Directors and Executives. 2003 ed. New York: McGraw-Hill Companies, 2003. The energy sector as a whole. External
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Over the years, the Exxon Mobil Corporation have repeatedly earned the ranking of a top-rated Fortune 500 company by flawl...
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A. Attention Getter: Right now all across America, rural landowners are getting outstanding offers from energy companies wanting to lease their property. How come? It is because these people are unknowingly sitting on the "Saudi Arabia of Natural gas". Moreover, an energy company known as Halliburton found an innovative way of tapping into it, known as hydraulic Fracturing.
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This report is to analyze the financial health of Chevron based upon several different measures including revenue, profit analysis, capital efficiency analysis, liquidity, financial leverage, market-based ratios, and finally the DuPont Analysis. Though a general observation can be made based on numbers/percentages alone, it is important to do a comparison with other companies in the oil and gas industry to get a better understanding of how we rank. In this report, I will use Exxon Mobil, Occidental Petroleum, and Conoco Philips as the peer group.
Duke Energy, being led by Good, has been leading the charge in cutting back from burning coal in order to operate. Duke is doing this by focusing on investing in renewable energy. This practice is accomplished by having multiple wind and solar farms throughout eighteen states(Sweet). By focusing on these farms and renewable energy, Duke has been able to cut down on coal usage to only contribute one-third of their power(Sweet). This is showing a conscious effort by Good and Duke to make ethical decisions for its customers and ultimately the environment
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To counter this problem, computer assisted audit techniques have been developed. These systems are able to provide a more in depth analysis of the utilized billing systems. Computer assisted audit techniques also enable highly efficient assessment of transactions. By utilizing this system, an auditor could gain a clearer picture of the revenue reporting mechanisms that are being utilized by the business office. Once the information is derived, however, its interpretation, while simpler, will still require an individual that is knowledgeable in regard to the revenue cycle
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b. Opportunities and Threats: The increase in fuel prices is likely to continue into the distant future, requiring either reduced services to control costs or new technologies to accommodate. The threat of low cost, flexible companies entering the markets in a variety of places, cutting into market share in numerous small areas, taken as a whole, threatens to harm larger c...
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