Financial Modelling for Oil & Gas
Duration: 2 days
This intensive course will enable you to learn how to build a cashflow model for evaluating the economics of a petroleum project. You will learn the fundamentals of modelling the net cashflow of a petroleum case study and then layer on top a capital structure for return and debt cover analysis. By working in a 100% hands-on, limited participant environment you will learn invaluable Excel tips and tricks as well as best practice financial modelling methodology from the best in the industry.
How will this course help you and your team?
Due to Corality’s acclaimed experience in delivering a global training programme, this course is suited to participants with a range of experience: analysts new to the Oil and Gas sector, experienced oil and gas professionals new to financial analysis, government and legislative professionals and anyone else interested in attaining an understanding of the analysis of oil and gas projects.
- Introduction to the SMART best practice modelling methodology
- Construction: modelling the S-curve; including contingency (cost and time over-runs)
- Pricing: creating a price from a base (Brent Crude, TAPIS); including different price paths for different stakeholders; modelling hedging instruments, floors, caps, collars, options; modelling contracted volume off-take
- Production: volume; production rate profiles; dynamic P90, P50 switching; dynamic reserve tail cut-off;
- Operating costs: typical fixed costs; How to model variable costs such as lifting costs; escalating costs with inflation (or not..); O&M contract optionality
- Tax and Depreciation: royalties; income tax; loss accounts; depreciation
- Project Finance: repayment according to a target DSCR; calculation of the RLCR; understanding typical debt sizing constraints
- Equity: calculation of dividends; assessment of return using NPV, IRR and payback
- Project Evaluation: comparing different projects using the scenario manager; understanding the impact of a construction delay upon returns; valuing opening exploration losses; producing key metrics for all scenarios at one using a data table
General emphasis on
- Cashflow ‘thinking’
- Setting the model up to handle scenarios / sensitivities
- Best practice methodology
- Working efficiently in Excel
- Investment theory (Real vs Nominal, Sunk costs, etc)
Australasian course bookings: +61 2 9229 7400
EMEA / South American / US & Canada course bookings: +44 20 7947 4019