Oil and Gas Financial Modeling

Description

This course focuses on the skills required to design and create a dynamic financial model of an oil and gas exploration and production company. The model includes producing oil and gas reserves and development drilling to increase production. The course material includes model design, logic, construction, financial concepts and accounting treatment. Various intermediate Excel tools along with helpful keyboard shortcuts will also be covered throughout to course.

Prerequisites

Participants should have a basic working knowledge of Excel and the oil and gas sector prior to taking this course.

Time

8 - 16 hours, depending on the amount of material to be covered.

Learning Topics

Design and Structure a Financial Model

Design a clear and logical financial model
Discuss the need for a model to serve as a marketing tool
Create clearly defined inputs and assumptions sections

Build Scenarios and Financial Forecasts

Use switches to create effective scenarios and value drivers
Forecast and build-up a company’s revenues and expenses
Construct all necessary schedules

Incorporate the Capital Structure

Properly incorporate Senior Term Debt with an amortizing repayment schedule
Create a robust Bank Operating Line (or Revolving Credit Facility)
Design and incorporate a cash sweep for a company’s Bank Operating Line
Balance the company’s balance sheet
Calculate key operating and credit statistics