Exploring Fairmount Energy: A Natural Resources Giant

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Fairmount Energy Inc. Fairmount Energy was established on April 1st, 2002 in Calgary, Alberta and is an energy company that focuses on natural resources such as oil and gas. Fairmount Energy’s main purpose is to acquire petroleum, natural gas, and natural gas liquids. In the year 2004, Fairmount Energy’s shares were given the stock symbol FMT and were added to the Toronto Stock Exchange. The company receives auditing services from Deloitte & Touche LLP (D. Touche, 2004). Furthermore, Fairmount Energy owns several properties in the province of Alberta in areas such as Gold Creek, Harmattan, Crossfield, Gilby, Warner, and Little Bow. The Board of Directors of Fairmount Energy consists of Joseph S. Durante, Brian J Mellum, Abdel F. Z. Badwi, Peter Salamon, Charles W. …show more content…

A decreasing debt to total assets ratio shows that the business is improving at obtaining assets while using liabilities. Furthermore, both ratios are low which is very healthy and indicates that the company as great portion of assets in comparison to liabilities. Fairmount Energy has shown their ability to obtain more assets and less liabilities as the debt to total assets ratio has decreased within the year. The working capital of Fairmount Energy as calculated using the current assets, and current liabilities given in the annual report of the year ended March 31st, 2009 is -$6,978,713. Given this information, an auditor can conclude that the company has a very low working capital. On March 31st, 2009, Fairmount Energy has a large amount of liabilities and a small amount of assets, which creates a working capital deficit. In addition, the annual report of the year ended March 31st, 2008 shows that the working capital of Fairmount Energy is -$13,897,716 which is an extremely low working

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