London

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Who should attend this 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

Whole Company Financial Modeling for E&P Companies

This section will allow delegates to learn how to build a three statement model for an E&P company. It will highlight the key value drivers and their inter-relationships.

 

Learning outcomes

  • Oil price benchmark and realised premium/discount to the benchmark
  • Production growth
  • Production cost per barrel
  • Replacement costs per barrel (finding & development)
  • Exploration & development expenditure
  • Movement in undeveloped vs. developed reserves
  • Movement in abandonment provision
  • Effective tax rate
  • The model will subsequently be used to perform a DCF and NAV valuation

DCF and NAV Valuation

This section will allow delegates to learn how to build a DCF valuation model for an E&P company and cover the five key stages.

 

Learning outcomes

  • Calculating FCF from EBIT
  • Estimating WACC
  • Estimating Terminal Value (Gordon growth vs. terminal EBITDAX multiple)
  • Discounting to derive an enterprise
  • Reconciling enterprise value to target share price

We will compare a DCF ‘going concern’ model with a ‘finite life’ NAV model, in which all exploration is discontinued and existing reserves are monetised over their expected production profile.

 

Finally, as a case study, we will examine the competent persons valuation report and M&A defence document covering a full NAV.

 

Learning outcomes

  • 2P reserves
  • Contingent resources
  • Best Estimate of Prospective resources (EMV)
  • Operating Working capital
  • Other balance sheet adjustments
  • Base case vs. best case

Comparable Transactions Analysis

 

Learning outcomes

  • Select comparable transactions
  • Obtain historic and projected data
  • Normalise the results and exclude extraordinary charges
  • Calculate premiums
  • Compute operations metrics: EV/1P or 2P reserves, EV/MCFE
  • Compute operational metrics: EV/DACF, EV/EBITDA, EV/EBITDAX, Price/NAV
  • We will examine E&P transactions in the US and Europe


Putting the Analysis Together

Review a football field of the various valuation methodologies and benchmarks.

 

Learning outcomes

  • 52 week high and low
  • Equity research
  • Trading comparables
  • DCF (with and without synergies)
  • NAV
  • Transaction comparables

"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 DELTA online learning environment
  • class recordings
  • course notes
  • quizzes
  • electronic homework/study files

Course trainers

Related courses

US$935.00
London courses
What to bring

You need to bring a Windows-based laptop to the training with Excel and Adobe installed on your system to access your course files. Our teaching materials are designed for PCs and not MAC based systems. Download details for the necessary files will be emailed a few days before the course. You can use any version of MS Excel in class. Please inform us of your Excel version when booking your course.