London

Venue and transport links

course-venue-pic
  • Aldgate East
  • The White Chapel Building
    5th floor
    10 Whitechapel High Street
    London
    E1 8QS
  • View venue
"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

Who should attend this course?

Experienced Finance Professionals

Working for a leading oil, gas or financial organisation means you’ll be working in a highly competitive environment. In order to stay ahead you’ll need to keep pace with your colleagues. AMT’s courses ensure that you maintain and enhance the knowledge and skills you need to deliver a professional service to your clients. Become more effective in the workplace and help advance your career. Learn or refresh your skills in financial statement analysis, financial modeling and valuation, and stay ahead of the curve.

 

What courses complement this one?

Oil and Gas

To get a comprehensive understanding of Oil and Gas Analysis and Valuation, study over 3 days:

 

 

Book all 3 courses

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


What will you receive on the course?

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