Foundations of Financial Modeling

Introduction:

This course is designed to develop your financial modeling skills through the evaluation and analysis of real-life case studies. 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 examine the latest tools and techniques modeling risk management and performance of oil & gas projects using sensitivity and scenario analysis, simulating world events, such as oil price volatility.

This course will feature:

• Practical application of financial modeling skills to real life case studies in the Oil & Gas sector and your company
• Development of finance knowledge and its application to business problems and decision-making
• The development of Financial Models which will be of practical use to you and your organization
• Excel and the latest financial analysis tools and techniques

Objectives

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

• Identify & make improved financial decisions
• Develop financial models
• Apply the latest tools and techniques to analyse financial data
• Manage financial risk using financial models
• Evaluate the performance of projects using financial models

The Contents:

Foundations of Finance

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

Foundation of Modeling

• Basic Excel functions
• Steps to develop a Financial Model
• Flow charting Techniques to improve Modeling
• Input Tables
• Pivot Tables
• Foundation Analysis Tools in Excel

Financial Modeling

• Forecasting the Income Statement, Balance Sheet (Statement of Financial Position) & Cash flow Statements
• Budgeting Models
• Purchase Decisions
• Modeling 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

Modeling Risk Management Scenarios

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

Modeling 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