London

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Who should attend the course?

  • 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

Course details

Industry Overview

This section will provide a brief introduction to the oil and gas industry.

 

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

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.

 

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 amortisation (unit of production method)
  • Borrowing costs
  • Abandonment
  • Revenue recognition (overlifts vs. underlifts)
  • 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
  • Standardised 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
  • Normalise 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 Asia Pacific regions

"I like that the public courses are supported by online training. I can learn at my own pace and time, which has helped increase my confidence in the work that I do." ~ research analyst, global financial institution

Course materials

While this is a face to face training course, a blended learning approach is taken and delegates will be provided with access to AMT Online. Our study materials contain both the knowledge and practice materials required to assist with the learning process and help you in your job role. Course materials include:

 

  • printed course binder with copy of the slides
  • laminated summary sheets
  • 24/7 access to AMT Online (AMTO)
  • class recordings
  • course notes
  • quizzes
  • electronic homework/study files

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