Master Class: Advanced Financial Modelling for the Oil & Gas Industry

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Overview

Overview

This is an interactive and hands-on five day course aimed at developing participants’ skills in implementing a wide range of financial modelling applications that are found in the oil and gas and related sectors. Even if you do not have a lot of modelling experience, the course is designed to take you to a higher level by building a complete model in stages.

Key themes include: best international practice in designing and developing models, sensitivity and scenario analysis, tools to create highly flexible models (such as shifting cash flows in time, manipulation of data), together with implementation of risk, uncertainty, optimisation and simulation modelling.

Day 1: Foundations of financial modelling
Day 2: Key model sections
Day 3: Visual basic for applications and financial mathematics
Day 4: Risk and sensitivity
Day 5: Optimisation, reporting and simulation

Benefits of the course

After this course delegates should have achieved a number of benefits and skills:

  • Recognise situations where more advanced tools can add value in existing models
  • Become quicker, more effective and efficient in day-to-day modelling work
  • Learn a practical approach to financial modelling in the oil and gas industry
  • Leverage on advanced tools in sensitivity analysis, including modelling risk and uncertainty
  • Construct flexible, robust and transparent models that follow best practice principles
  • Manipulate data sets efficiently
  • Develop an in-depth knowledge of a wide range of advanced functions in Excel
  • Create and write VBA code
  • Develop your own solutions to challenges faced in modelling financial situations

Venue

London

Central London Hotel Venue

All courses are held at four or five star venues in Central London, Zone 1. We strive to provide you with a training environment of the highest quality, to ensure that the whole learning experience exceeds your expectations.

Your training venue will be confirmed by one of our course administrators approximately 3-4 weeks before the course start date.

Related Courses

Inhouse


 

Do you have five or more people interested in attending this course? Do you want to tailor it to meet your company's exact requirements? If you'd like to do either of these, we can bring this course to your company's office. You could even save up to 50% on the cost of sending delegates to a public course.

To find out more about running this course in-house:





Our Tailored Learning Offering

If you want to run this course at a location convenient to you or if you want a completely customised learning solution, we can help.

We produce learning solutions that are completely unique to your business. We'll guide you through the whole process, from the initial consultancy to evaluating the success of the full learning experience. Our learning specialists ensure you get the maximum return on your training investment.

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We can offer any of our public courses delivered at your office or we can devise completely tailored solutions:


Read more about our offering or complete a call back request to speak to a learning specialist.

 

Agenda

Day 1

Foundation of financial modelling

  • Introduction
  • Overview of the course
  • Project modelling basics
  • Common modelling errors
  • Systematic Design Method
  • Case study outline
  • Practical: Reviewing model examples


  • Excel best practice
  • Review of Excel core functions
  • Model auditing and short-cuts (introduction and key points)
  • Key Excel functions – information, time, maths, statistics
  • Required Excel features and techniques
  • Timing flags, inflation and flexibility
  • Practical: Developing a model framework


  • Commodity prices
  • Importing and converting data, e.g. downloads of oil prices
  • Database functions
  • Analysis functions
  • Practical: importing and analysing data


  • CAPEX and depreciation
  • Excel functions for CAPEX
  • CAPEX schedules
  • Depreciation profiles
  • Practical: Setting out CAPEX schedule


 

Day 2

Key model sections

  • Production profile
  • Forecasting productions
  • Excel forecasting techniques
  • Conversion factors
  • Practical: Setting out production schedule


  • Operating costs
  • Fixed and variable costs
  • Transferring costs to initial accounting statements
  • Practical: Completing and checking the initial statements


  • Abandonment
  • Finding peak production
  • Economic limit test
  • Abandonment costs
  • Practical: Applying economic limit test


  • Royalties
  • Fiscal requirement
  • Royalties, bonuses and taxation
  • Practical: Adding fiscal structure to the cash flows


 

Day 3

Visual basic for applications and financial mathematics

  • Introduction to visual basic
  • Visual basic outline
  • Recording macros
  • Running code and stepping through line-by-line
  • Use of break points
  • Practical: Macro exercises


  • Visual basic exercises
  • Improving recorded code through direct writing of code
  • Use of named ranges
  • Creation of simple input and message boxes
  • Creation of buttons to run code
  • VBA functions


  • Financial mathematics
  • Recap of financial mathematics
  • Time value of money
  • Differing discount rates
  • Net present value and internal rate of return
  • Time varying discount rates
  • Effect of inflation
  • Practical: Financial mathematics exercises


  • Initial results
  • Generating project cash flows
  • Net present value
  • Internal rate of return
  • Practical: Deriving initial results


 

Day 4

Risk and sensitivity

  • Sensitivity analysis
  • Adding risk techniques
  • Initial scenarios
  • Matrices
  • What-if analysis
  • Practical: Adding sensitivity and scenarios


  • Multiple scenarios
  • Adding multiple scenarios
  • Increasing model flexibility
  • Practical: Adding multiple scenarios


  • Other risk methods
  • Calculating relative risk
  • Tornado charts
  • Spider charts
  • Practical: Adding spider and tornado charts


  • Auditing techniques
  • Internal and external methods
  • Complete model audit
  • Practical: Checking the model template


 

Day 5

Optimisation, reporting and simulation

  • Optimisation
  • Achieving a target valuation
  • Goal seek method
  • Testing stress scenarios
  • Practical: optimising the target case
  • Simulation modelling
  • Monte Carlo simulation
  • Benefits of risk modelling
  • Role of distributions in risk models
  • Use of distributions; key terms and concepts
  • Application of simulation modelling
  • Application to case model
  • Simulation add-in
  • Analysing output
  • Practical: Adding simulation to model template
  • Model completion
  • Final auditing
  • Management summaries
  • Version control
  • Practical: Model completion
  • Questions and answers

 

Course summary and close

Why us


We have a combined experience of over 60 years providing learning solutions to the world’s major organisations and are privileged to have contributed to their success. We view our clients as partners and focus on understanding the needs of each organisation we work with to tailor learning solutions to specific requirements.

We are proud of our record of customer satisfaction. Here is why you should choose us to help you achieve your goals and accelerate your career:

  • Quality – our clients consistently rate our performance ‘excellent’ or ‘outstanding’. Our average overall score awarded to us by our clients is nine out of ten.
  • Track record – we have delivered training solutions for 95% of worlds’ top 100 banks and have trained over 250,000 professionals.
  • Knowledge – our 150 strong team of industry specialist trainers are world leading financial leaders and commentators, ensuring our knowledge base is second to none.
  • Reliability – if we promise it, we deliver it. We have delivered over 20,000 events both in person and online, using simultaneous translation to delegates from over 180 countries.
  • Recognition – we are accredited by the British Accreditation Council and the CPD Certification Service. In an independent review by Feefo we scored 96% on service and 95% on product