Oil Company Financial Analysis and Valuation

Course description

This two-day interactive course is tailored for finance professionals who need to understand oil sector economics, how to analyze an oil company’s financial statements and how to create an oil company valuation model.

The course will consist of an interactive lecture and in-depth cases and exercises. Additionally, relevant articles highlighting recent market, regulatory and risk trends in oil companies will supplement the course.

This course is tailored to credit and equity analysts. Calculators are required. Participants will need laptops for their exercises.

What will you learn

By the end of the course you will be able to:

  • Identify key factors influencing oil demand and supply
  • Examine factors influencing oil price forecasting
  • Evaluating oil companies’ strategy and decision making process
  • Identify key issues in the corporate governance of an oil company
  • Evaluate if a company has a good risk management process
  • Differentiate between the different types of oil companies
  • Discuss important factors influencing upstream and downstream economics
  • Read an oil and gas company financial report
  • Identify key ratios in a stock report
  • Develop a systemic approach to valuing an oil company
  • Create a financial model for an oil and gas company
  • Create an appropriate peer group for benchmarking

Main topics covered during this training

  • Key factors influencing oil demand and supply
  • Overview of Oil Sector Economics
  • Role of hedgers vs. speculators
  • Asset reallocation
  • Role and influence of OPEC
  • Influence of rising powers
  • Impact of search for alternative energy resources and of the environmental impact on the oil sector
  • Characteristics of Vertically Integrated Oil Companies(IOCs), Exploration and Production(E&Ps), and Oil Field Service Companies
  • Financing Oil Projects
  • Risks Assessment for Oil Companies
  • Role of corporate governance
  • Accounting Systems for Oil Companies
  • Reading an Oil Company Financial Statement
  • Valuing a Private Sector Oil Company
  • Segment Valuation
  • Value of Reserves in the Ground

Who should attend

The course is designed for those working in the oil and gas sector:

  • Energy Investment Bankers
  • Corporate Planners and Strategists
  • Equity Analysts
  • Credit Analysts
  • Investors
  • M&A Accountants and Lawyers

Oil Company Financial Analysis and Valuation - A 2 Day Programme

Module I: Overview of Oil Sector Economics

  • Identify key subsectors of the oil sector
             – Reserves
             – Exploration and Production
             – Transport
  • Identify key factors influencing oil demand and supply
             – Economic fundamentals
             – Oil price shocks: 1973, 1979, 1998, and now
             – Role of hedgers vs. speculators
             – Rate of US$
             – Asset reallocation
  • Identify role and influence of OPEC
  • Debate influence of rising powers
             – Russia, Kazakhstan, China, and India
  • Debate impact of search for alternative energy resources and of the environmental impact on the oil sector
Module II: Oil Companies
  • Differentiate the characteristics between
             – Vertically Integrated Oil Companies(IOCs),
             – Exploration and Production(E&Ps), and
             – Oil Field Service Companies
             – Beyond petroleum companies
Module III:  Financing Oil Projects
  • Compare and contrast how oil companies finance investment projects
  • Evaluate role of multilateral entities and quasi governmental entities in financing oil projects
  • Define the influence of petroleum fiscal systems and product sharing agreements
Module IV: Risks Encountered by Oil Companies
  • Define risk
  • Review risks that can affect an oil company
              – Country, Economic, and Technical
              – Financial
  • Define and evaluate role of corporate governance
Module V: Accounting Systems for Oil Companies
  • Identify reserve recognition accounting
  • Enumerate costs associated with O&G exploration and production
  • Compare and contrast full cost and successful efforts accounting
Module VI: Reading an Oil Company Financial Statement
  • Identify salient features of an oil company’s balance sheet, income statement, and cash flow statements
  • Evaluate the best financial ratios appropriate for the oil sector
              – Vertically Integrated
              – Exploration and Production
              – Refineries
              – Oil Field Services Companies
Exercise: Class will split into groups and will analyze financial ratios for a vertically integrated company, exploration and production, refinery, or oilfield services company from financial information handed in class.
Module VII: Valuing a Private Sector Oil Company
  • Review of corporate finance principals as applied to oil companies
  • Evaluate financial models
  • Prepare an oil company valuation
  • Create an appropriate benchmarking peer group
Exercise: Participants will break into groups and create a financial forecast for an oil company of their choice.  They will also create an appropriate benchmarking peer group and perform ratio analysis.
Module VIII: Segment Valuation
  • Identify the usefulness of segment valuation
  • Evaluate different segments like
  • Reserves, transport, refineries and marketing outlets
Module IX: Value of Reserves in the Ground
  • Analyze components use to value an oil discovery
  • Evaluate a template for reserve valuation

 

 

Trainer

Mayra specializes in training and consulting solutions for energy markets, risk management, financial derivatives, capital markets, foreign exchange, and corporate finance.

Her financial experience covers financial and energy derivative instruments. She has worked with private and foreign central banks in the US, UK, Eastern Europe, Central and Southeast Asia, and Africa, creating and delivering courses on risk management, risk based supervision, capital markets, derivatives, microfinance, anti-corruption, and good governance.
Mayra has worked with the US Civilian Research and Development Fund and the State Department to help convert Russian scientific facilities to viable business entities. She has created courses in Russian on corporate image, strategic planning, human resources, marketing, management, operations, legal risks and business plan writing.
Prior to this Mayra had energy, equity, and fixed income analyst roles in London at BT.AlexBrown and JP Morgan. There she assisted major financial institutions and money managers in Europe and the Americas with their investment strategies and risk management in Russian and Eastern European markets, with a focus on the oil and electricity sectors. Mayra began her career as a foreign exchange analyst at the Federal Reserve Bank of New York where she had the honor of interpreting between members of Russian President Boris Yeltsin’s delegation and Messrs. Henry Kissinger and Paul Volcker.  Whilst at FRBNY, she was also awarded a Performance Plus Award for leading a foreign exchange course for foreign central bankers.
Mayra has been an Adjunct Professor at New York University where she taught The Politics of International Economic Relations and Economics and Finance of Energy. She was also an Adjunct Professor at The Fashion Institute of Technology of New York where she taught global marketing, corporate finance, and Latin American politics. She is fluent in English, Spanish, and Russian and is functional in German, Hebrew and Italian.

 

FAQ

We offer banking and finance courses as well as soft skills and business management training. You can either attend an open public course in London or Dubai or arrange customised in-house training to be delivered in any of your offices worldwide.

Most of our public courses are run over 2 full days. Some programmes are offered as a 1 or 3 day training.

In-house training is tailored to client’s requirements and can be organised over 1 day, 2-3 weeks or longer.

Public courses are organised mainly in London and Dubai. Occasionally we organise courses in other centres like Paris or New York. Check our public course calendar for the current list of programmes. We use a range of training venues, all in the centre of the cities and with excellent transport links to the airports and train stations.

In London we use venues in the centre (near Oxford Circus station or in Mayfair) or in the City (near Liverpool Street or Moorgate stations).

In Dubai our courses are organised in one of 4-5* hotels in the Deira district. Once you register we will send you detailed information together with accommodation options if required.

Our in-house courses can be delivered anywhere in the world. We work with over 25 trainers worldwide. Contact us do discuss your requirements. Check our list of available programmes.

Our courses are run in central locations from 9 a.m until 5-5.30 p.m. There are 2 coffee breaks and a lunch break. Lunch is always provided in the venue.

Dress code is smart casual.

All our programmes are taught by senior specialists who have spent many years in their respective sectors, working as senior managers and head of departments, so they understand very well the market and the challenges you are facing.

The experience of our trainers allows us to create very practical programmes, focused on current market trends and challenges. You can be sure that you will gain the knowledge which can be instantly applied in your workplace after the course. You will be analysing real life case studies, take part in group exercises and discussions as well as role plays, whenever applicable.

We want our courses to be as practical and interactive as possible so we limit the number of participants in order to optimise your time with the trainer and allow you to ask questions which are important for you.

In order to understand your requirements and expectations, we will send you a pre-course questionnaire.

You will also receive post-course support so if you have any questions after you left the training, you are welcome to contact us.

There are 2 easy ways to register:

  1. Go to the course of your choice and click Register Now button to fill the registration page
  2. Email us to enquiry@eurekafinancial.com

After you register, we will send you registration confirmation and an invoice so you can arrange the payment. Please note that your place is not confirmed until we receive it.

If you register within Early Bird discount period, there’s limited time to arrange the payment in order to be eligible for the discount. You will find all the details on the invoice.

We don’t advise to make any travel and hotel arrangements until you receive full course confirmation from us.

We will send you venue and course details as soon as possible but most likely about 3-4 weeks prior to the course commencement.

You can pay by:

  • Making a bank transfer
  • Debit/credit card
  • Cheque payable to Eureka Financial Ltd. - only within UK

Just mark preferred paying option on the registration form. Whichever form of payment you choose we will always send you an invoice.

If you pay by card, a 2.2% processing fee will be added. We will send you authorisation form so you can give us your card details.

Included in the price of a public course are:

  • Course tutorial
  • Take away course materials
  • Course Certificate
  • Lunch on the days of the training as well as drinks and snacks throughout the course

The price doesn’t include accommodation, flights, transfers and any additional costs outside of the training venue.

Yes, we always offer Early Bird discount, so the sooner you register the more savings you can make. We also offer group discounts and if you register for 2 or more programmes at the same time.

If you are a full time student or unemployed, we offer a 25% discount of the full price of the training. Student ID or unemployment status confirmation is required to claim this discount.

If you attend one of our courses you will be entitled to a special discount for a year after the last course you attend with us. Also, if you have attended and recommended us to a friend, both you and your friend will receive a special discount. You will receive more information about it after you attend the course.

See our Customer Loyalty Discounts page for more details.

All our courses based in the UK are subject to the VAT charge of 20%. This fee is irrespective of the country of residence of the delegates.

You can, however, claim the VAT back by contacting UK tax office - HMRC, and filling the relevant form, as long as you comply with the following rules:

For Delegates coming from the EU countries

If you represent a registered business in another EU country, you can use the Refund Scheme to reclaim VAT you pay in the UK as long as all of the following apply:

  • You're not registered for VAT in the UK and don't have to, or can't be, registered here
  • You don't have a place of business or a residence in the UK
  • You don't make any supplies in the UK

You can find some more information here. In order to claim the VAT you have to fill Form 65.

For the Delegates from Non EU countries

If you represent a registered business in a non-EU country, you can use the Refund Scheme to reclaim VAT you pay in the UK as long as all of the following apply:

  • You're not registered for VAT in the UK and don't have to, or can't be, registered here
  • You don't have a place of business or a residence in the EU
  • You can only use the Refund Scheme if your own country operates a similar scheme and makes it available to UK businesses. If your country has its own Refund Scheme but doesn't let UK businesses use it, you can't claim under the UK Refund Scheme.
  • You don't make any supplies in the UK

If the following rules apply to you, please fill the 65A form and send it to HMRC.

If you are unable to attend the course, you can either send a replacement at no extra charge or, up to 20 working days before the training, you can transfer your booking to another course within the next 6 months for an additional fee of 25% of the full course value. Please note that you can only transfer once.

Alternatively, for cancellations requests received more than 20 working days before the course date we will offer a refund less an administration fee of 10% of the course price.

We regret that no refunds can be given after this period. Non-attendance without any notification will be charged at full rate.

Cancellations must be made in writing and reach our office 20 working days prior to the course date.

Your place on a course is not guaranteed until we receive the payment. All payments must be made in full before the course date.

All our trainers have been working for many years in their respective sectors before they begun to teach so they bring a wealth of practical experience to the classroom.

Most of them used to work for 15 or more years in the financial sector and corporate world, and were holding positions of Directors, VP and Senior Managers. Some of them have published books and have written articles for specialised magazines and newspapers including FT, The Independent, The Times etc. You can find detailed biography of each trainer on the page of the course you want to register for.

Yes, you will receive a Certificate of Attendance at the end of the course you attend.

If you have to apply for a Visa to attend a course in the UK, we will issue a letter to support your application. The letter will be issued only after the payment for the course has been made.

It is delegate’s responsibility to obtain a Visa and failure to do so will not make the participant exempt from the cancellation policy.

Anyone suspected of applying for a training course simply to gain a Visa letter will be reported to their embassy.

We will need the following information to issue an invitation letter:

  • Full name as it appears on your passport
  • Date of birth
  • Passport number
  • Passport issue date
  • Passport expiry date

This topic can be arranged on in-company basis. If you have a group of 4 or more we can customise it and deliver in any location worldwide. Contact us to discuss your requirements

WHAT PAST DELEGATES SAY

We are using cookies on our website

Please confirm, if you accept our tracking cookies. You can also decline the tracking, so you can continue to visit our website without any data sent to third party services.