Courses Categories: Finance and Accounting and Finance
Oil and Gas: Accounting Financial Statement Analysis and Trading Multiples (1 day)
Oil and Gas: Accounting Financial Statement Analysis and Trading Multiples (1 day)
Address: 10 Whitechapel High St
London
Greater London
E1 8QS
United Kingdom
London
Greater London
E1 8QS
United Kingdom
What You Will Learn :
- Oil and gas production and consumption growth and profile
- Stages in the upstream: exploration, appraisal, development, production and abandonment
- Depreciation, depletion and amortisation (unit of production method)
- We will examine E&P companies listed in the US, Europe and Asia Pacific regions
Description
Industry Overview
This section will provide a brief introduction to the oil and gas industry
Accounting and Financial Statement Analysis
This section will allow delegates to learn accounting principles applied to oil and gas companies, review and analyse oil and gas companies’ financial reports and relevant disclosures.
Outcome / Qualification etc.
Industry Overview Learning Outcomes
- Oil and gas production and consumption growth and profile
- Global reserves
- Key players: NOCs, IOCs, independents, and oil field service companies
- Value chain of one barrel of crude oil (E&P, refining, retail distribution & taxes)
- Stages in the upstream: exploration, appraisal, development, production, and abandonment
- Volumes and conversion factors
- Price benchmarks (Brent vs. WTI)
Accounting and Financial Statement Analysis Learning Outcomes
- Reserves and resources definitions (proven developed & undeveloped, probable & possible, contingent resources and prospective resources)
- Exploration and evaluation: Full costs vs. successful efforts accounting methods
- Development expenditures
- Depreciation, depletion and amortization (unit of production method)
- Borrowing costs
- Abandonment
- Revenue recognition (over lifts vs. under lifts)
- Farm outs vs. farm-ins
- Post balance sheet events and impairments
- Disclosure of reserves and resources (US GAAP vs. IFRS)
- Structure and layout of financial reports and filings, interpretation of financial statement disclosures, including PV-10 DCF disclosures under US GAAP
- Standardized measure of cash flows (EBITDA, EBITDAX, DACF, CF to shareholders)
- Analysis of key operational and financial ratios:
- Reserve replacement ratio, reserve life ratio, reserve value ratio
- Production cost per barrel, DD&A per barrel, EBITDAX per barrel, replacement cost per barrel
Comparable Valuation Analysis Learning Outcomes
- Select comparable companies
- Obtain historic and projected data
- Normalize the results and exclude extraordinary charges
- Compute operations metrics: EV/1P or 2P reserves, EV/MCFE
- Compute operational metrics: EV/DACF, EV/EBITDA, EV/EBITDAX, P/CF, Price/NAV and P/E
- We will examine E&P companies listed in the US, Europe and the Asia Pacific regions
Who is this course for?
New hires who have joined the firm late and missed the in-house program
Individuals looking to fill a knowledge gap
Experienced bankers looking to refresh their technical skills
Teams employed in financial strategy roles from non-banking corporations
Graduates preparing to interview for a role in the finance sector
Students at business school and looking for a career in finance
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