Advanced Financial Modeling for Oil and Gas

Courses Syllabus

Introduction:

This intensive 10-day course is designed to develop your financial modelling skills, taking you from Foundation level through to Advanced level, through the evaluation and analysis of case studies in the Oil & Gas sector. It will also develop your knowledge and understanding of finance enabling you to make financial decisions which will, reduce costs, increase profit and minimize risk.

The course will use the latest tools and techniques estimating sales, costs, risk and economic variables leading to advanced financial optimization models using Excel, best international practice, tools and techniques.

This course will feature:

• Practical application of advanced financial modelling skills to real life case studies in the Oil & Gas sector and your company
• Development of advanced financial knowledge and its application to business problems and decision making
• The development of Advanced Financial Models which will be of practical use to you and your organization
• Training using Excel and the latest financial analysis tools and techniques
• Supporting material in both hard and soft copy explaining key Excel

Objectives:

By the end of this course, participants will be able to:

• Make improved financial decisions using Advanced Financial Models
• Develop a range of financial models using Excel to prepare financial statements, evaluate performance, evaluate capital investment decisions, manage projects and risk
• Apply the latest tools and techniques to analyse financial data
• Manage sales, costs and financial risk using financial models
• Prepare, use and report on advanced financial models

The Content:

Foundations of Finance

• Financial & Management Accounting
• Developing Financial Statements – Income Statement, Balance Sheet (Statement of Financial Position) & Cashflow Statements
• Financial Performance using Ratio Analysis
• Management Accounting – developing Budgets
• OPEX & CAPEX
• Financial Terminology Explained

Foundations of Modelling

• Basic Excel functions
• Steps to develop a Financial Model
• Flowcharting Techniques to improve Modelling Input Tables
• Pivot Tables
• Foundation Analysis Tools in Excel

Financial Modelling

• Forecasting the Income Statement, Balance Sheet (Statement of Financial Position) & Cashflow 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

Modelling Risk Management Scenarios

• Identifying the major Risks in the Oil & Gas sectorModelling Risk & Uncertainty
• Sensitivity Analysis
• Scenario Analysis
• Break Even Analysis
• Modelling & Managing changes in Interest Rates & Exchange Rates

Modelling the Financial Performance of Oil & Gas Projects

• Variance Analysis
• Critical Path Analysis – Financial & Manpower implications
• GANTT Charts
• Earned Value Analysis
• Managing Variances
• Simulating changes in the project

Advanced Modelling Skills with Excel 

• From Basic Modelling to Advanced Modelling
• Identifying Financial Applications for Modelling in the Oil & Gas sector
• Advanced Financial Applications of Excel
• Advanced Financial Analysis Tools in Excel
• Graphs & Charts to aid Financial Analysis

Estimation Models – Income, Costs, Risks & Economic Variables (Oil Prices, Exchange Rates & Interest Rates)

• Cost Estimation – Incremental; Inflation, PERT, Supply & Demand factors
• Forecasting using Statistical Methods in Excel – Time Series Analysis, Exponential Smoothing, Correlation & Regression Analysis
• Risk Measurement using – Probability Analysis, Correlation & Beta
• Forecasting Oil Prices using statistical models Measuring & Managing Investment Risk

Developing an Advanced Financial Optimisation Model

• Developing the Financial Model using Costs and Economic Variables
• Simulating changes to Costs & Accounts Payable Simulating changes to Sales Volume, Oil Price & Accounts Receivables
• Financial Derivatives – Forwards, Options Futures & Swaps
• Using Derivatives to Managing Oil Price Volatility, Interest Rates & Exchange Rates

Models to Assess Growth Strategies Evaluating growth strategies

• Models to simulate growth strategies
• The dangers of Overtrading
• Examining the impact on Working Capital
• Examining the impact on Leverage

Modelling Best Practices

• Developing an Advanced Financial Optimisation Model to meet the needs of the delegates and their organisation
• Presentation of the Model
• Testing the Model
• Improving the Model