Financial Analysis, Modelling & Forecasting in the Oil & Gas Industry

Course Description

This course has been designed to provide the delegates with a detailed series of insights into the analysis of financial information and its communication by way of data recording, analysis and reporting. The course covers an ambitious range of techniques and functions available both to the financially aware and the spreadsheet user.

 

By the end of the course, delegates will have worked with and developed various forms of analysis, models and templates that they will be able to take back to work with them for immediate use or further development.

 

This course is intensive and highly interactive and delegates will have hands on experience of all functions, formulas and techniques introduced during the course.

 

Course Objectives

This course is designed to provide you with a range of techniques, ideas, concepts and methodologies that will take your financial modelling skills to the intermediate level. By the end of this course delegeates will be able to:

 

  • Appreciate the Sources of Data used for financial analysis:
  • Create Templates for financial analysis  
  • Benchmark Financial and operating performance             
  • Carry out statistical analysis of financial and ratio results
  • Use the Data Analysis Toolpak   
  • Use with deeper understanding, financial modelling methodologies, techniques and approaches
  • Apply a range of tools and techniques to apply to their models to enhance reliability, usability and robustness.
  • Use a structured approach to modelling that not only generates models that are reliable, robust, controlled, extendable and easy to use, but also speeds up model development.

 

Who Should Attend

Anyone requiring a more advanced understanding of financial analysis, modelling & forecasting in the oil & gas industry

  • Financial professional seeking to enhance their analytical, modelling and forecasting skills
  • Financial Professionals with the need to enhance their spreadsheeting expertise
  • Professionals seeking to improve their financial and other communication skills
  • Personnel from departments other than finance who have the need to get to grips with financial analysis, modelling and forecasting
  • Professionals who would benefit from having an opportunity to undertake consultancy to solve their analysis, modelling and forecasting problems in a spreadsheet or case study setting.

 

Personal Objectives

As a result of attending this course, delegates will have

  • a detailed appreciation of major approaches to financial analysis and modelling
  • a working knowledge of the main processes involved in financial analysis 
  • a practical understanding of many of Excel’s most important functions and utilities used by the accountant and financial manager
  • the ability to set up and implement financial models in their own area of responsibility
  • the ability to discuss with confidence the nature and meaning of a wide range of financial topics
  • a modern approach to template creation and use
  • a robust approach to modelling best practice
  • an up to date view of the power and capabilities of Excel
  • a sound introduction to Business Intelligence
  • a complete set of delegates’ and trainer’s Word, PowerPoint and Excel files: that is, fully worked versions of all of the Excel files used and worked on during the course

 

Training Strategy

This is a highly interactive intermediate level course and at all stages, delegates will be working on examples and cases introduced and provided by the trainer. Every stage of the course will follow this format:

 

  • Trainer introduces a topic, an idea or section
  • the delegates will follow the trainer’s Excel or discussion based demonstration of the topic by working on the file/template provided for them or discussing the issued involved in a proactive and interactive way
  • the delegates will then work on, enhance and modify the exercise and/or be provided with a new exercise or model for their further development
  • the trainer will monitor the work of all delegates at all stages of this independent development work and make recommendations on a one to one/group basis

 

Mini cases will be introduced at each and every stage and the trainer will decide how best to involve one, two or more delegates in their discussion and resolution: see the Assessment section, below.

 

It is vital that all delegates come to the course with their own laptop computer already loaded with Excel 2010, Excel 2013 or Excel 2016.

 

Assessment

The contents and practice of this course will be assessed and one vital aspect of this course is that delegates will be given the opportunity to introduce and work on their own mini cases: a mini case is a problem that the delegate might be facing or anticipating at work. The delegate can work with the trainer at any time to resolve or develop their mini case.

 

 

Continuing Professional Development

21 HOURS CPD

 

 

Course Content

Day 1

Financial Analysis

 

Session 1

 

The objectives of the analysis: who are you and what do you want to know?

The Sources of Data:

  • internal
  • external              
  • forecasts and projections            

 

Case: review of the financial and operational aspects of the oil and gas industry. You will be given a series of financial schedules relating to oil and gas companies together with operational and asset data relating to the industry: your task is to highlight and discuss the most important points of your analysis of the data.

 

Session 2

Standardised Financial Data Recording          

 

Case: financial reports, both IFRS based and non IFRS based from the oil and gas industry will be provided for your review and you are required to summarise your analysis of them.

 

 

 

Session 3

Creating Templates for Financial Analysis

  • Template Best Practice 
  • Creating Templates for Financial Analysis             
    • financial ratios  
    • operating ratios
    • common size statements            
    • rates of change ratios    
    • investor ratios
    • other techniques

 

Case: Following on from sessions one and two, create and maintain a financial ratio analysis template for your company. In addition to considerations of financial and ratio analysis best practice, you will be required to consider oil and gas specific raios and KPIs as bonus and rental payments, abandonment costs together with investor and government NPV.

 

Session 4

Benchmarking of Financial and Operating Performance         

  • graphical and dashboard analysis             

 

Case: consolidation of learning so far: create a dashboard suitable for use in the oil and gas industry.

 

 

Day 2 

Modelling for Finance and Accounting              

Case: today will comprise a series of examples and databases incorporating data from the oil and gas industry that delegates will use to set up and test the functions built into Excel appropraite to today’s materials.

 

The BP World Energy Outlook will  be used etensively throughout the day, for example, to help the delegates create scenarios and to work with and implement new strategies and models as well as working with the newest modelling tools: Excel Power Query and Pivot as well as Power BI.

 

Session 1

Allocation of resources         

  • Application of matrix algebra and linear programming
  • Using SOLVER in Excel

 

Sensitivity analysis  

Excel’s scenario manager     

  • scenario management using alternative approaches       

 

Session 2

Business Intelligence Part 1

Insights into Business Intelligence

  • Developing more sophisticated models using
    • Power Query
    • Power Pivot

 

Microsoft Power BI

 

 

 

Session 3

Statistical Analysis of Financial and Ratio Results       

 

Ordinary Least Squares Analysis        

  • SLOPE
  • INTERCEPT
  • FORECAST
  • TREND
  • LINEST: array and non array versions
  • INDEX(LINEST())
  • Trendlines: linear and non linear

 

Session 4

Data Analysis Toolpak

 

  • Correlation
  • Descriptive statistics
  • Regression
  • Time Series

 

Build Regression Analysis Models: Forecasting and Decision Making 

 

 

Day 3

Excel Techniques for Financial Modelling

 

We can consider day three to be a kind of capstone day in that we will use it to put into practise many of the techniques we have already used in the course so far and then add to that a wide variety of financial modelling techniques from Excel. In outline, this means we will develop the day as follows:

 

  • Introduction to Financial Modeling
  • Building a layout for Project Evaluation Model: Best practice
  • Building Inputs and Assumptions Sheet
  • Building Projections for Project Evaluation
  • Modeling the Cash Flow Statement and Projections
  • Putting it all together: Final Project Evaluation Model

 

Case: we will use the FAST spreadsheet Standards as reference points here and that will help the delegates to appreciate the work that has to be done to create acceptable files and reports.

Case: Present a final model for an Oil and Gas Industry based scenario incorporating the build up of the assumptions needed for a successful financial model. Carry out cash flow analysis including CAPEX, summarise a P&L Model aiming at free cash flow calculations. Review the valuation calculations as a focal point of the model.

 

Duration

3 days

 

 

Location

Date

 

Houston, Texas, United States

 

 

20-22 September 2017

 

Dubai, United Arab Emirates

 

 

15-17 October 2017

 

London, United Kingdom

 

 

6-8 November 2017