Introduction:

Finance professionals who wish to pursue careers in the oil and gas industry need to gain solid knowledge on how to develop, review, and analyse financial models. Certification is highly beneficial for finance professionals in the energy sector, as well as analysts and associates in investment banks. This course articulates from the core Finance course, examining familiar concepts in an oil and gas industry context, and introducing new concepts that are of relevance to managers in the oil and gas industry. This course is designed to enhance the ability to apply financial tools and ideas to organisations in the oil and gas industry.

Trainees develop an Oil & Gas (O&G) financial model completely from scratch, inputting historical data as well as macro– and company-specific assumptions to project out financial statements using step-by-step instruction on selecting, locating, and developing appropriate projection drivers. At completion, trainees will have developed a comprehensive O&G model using various supporting schedules. Trainees build O&G models using Excel templates and the exact way they would on the job.

Learning Outcomes:

• Oil price benchmark and realised premium/discount to the benchmark
• Production growth
• Production cost per barrel
• Replacement costs per barrel (finding & development)
• Exploration & development expenditure
• Movement in undeveloped vs. developed reserves
• Movement in abandonment provision
• Effective tax rate
• The model will subsequently be used to perform a DCF and NAV valuation

Who should attend?

This public training boot camp is suitable for the following professionals:

• Finance Professionals in the Energy Sector
• Investment Banking Analysts and Associates
• Private Equity, Asset management and Hedge Fund Associates
• Corporate Finance and Business Development Professionals
• MBA’s and Business Suitability and application Undergraduates
• Anyone seeking to improve their O&G financial and valuation modelling skill set

Course Outlines:

Day 1

Key Financial Management Systems

• Effective Budget preparation and management
• Cash flow management and forecasting
• Interpreting key financial statements
• Key financial ratios & Analysis

Day 2

Effective Treasury Management

• Overview of global treasury models
• Pure return portfolio structuring
• Pure income portfolio structuring
• Defensive portfolio structuring
• THE ROLE AND IMPACT OF FINANCIAL INSTRUMENTS

(Derivatives- Bonds – Options – Futures)

Day 3

Financial Modelling

• Forecasting the Income Statement, Balance Sheet (Statement of Financial Position) & Cash flow Statements
• Budgeting Models
• Purchase Decisions
• Modelling Finance Decisions – Equity or Debt and the Cost of Capital
• Capital Investment Decisions – Payback, ARR, NPV& IRR using Excel
• Graphs & Charts to support financial models

Day 4

Effective Risk Management:

• The key concepts and elements of risk management
• Managing Market Risk
• Managing Credit Risk
• Managing Liquidity Risk

Day 5

Practical Financial Modelling

• Key principles within Financial Modelling
• Constructing key financial models
• Linkage of models and sub-models
• Scenario Planning Applications