Masterclass: Advanced Strategies in Oil & Gas Finance & Accounting: M1: Introduction to Oil & Gas Finance & Accounting

Masterclass: Advanced Strategies in Oil & Gas Finance & Accounting (Modular Course) 10-14 November 2014, Hong Kong Module 1: Introduction to Oil & Gas Finance & Accounting 10-11 November 2014, Hong Kong Module 2: Advanced Oil & Gas Finance & Accounting Strategies 12-14 November 2014, Hong Kong Each module can be booked separately. Attend all the modules and save US$1,690. Contact energy@euromoneyasia.com for more information.
M1: Introduction to Oil and Gas Finance and Accounting (Day 1-Day 2) Day 1 Budgeting and Forecasting Strategies in the Oil and Gas Industry Session 1: Laying the foundation - global energy outlook, supply and demand balance brought about by a rapidly changing world Setting the stage for finance and accounting strategies for oil and gas companies Changing technology and the role of shale oil and gas plays The U.S. energy renaissance and implications for global competitiveness Global energy outlook Energy supply and demand issues Current views on energy price projects Human capital shortages, unproven technology, and unknown geology Future trends of oil and gas Session 2: How oil and gas companies differ from other industries and key issues in oil and gas accounting and finance To understand the financial prospects of an oil and gas company, one must understand how they differ from other industries and key issues related to reporting. Special accounting treatment for oil and gas companies Analysing the different accounting methods and financial statements Determining the proper classification of oil and gas costs: capitalise, expense, exploration costs, development costs, production costs Revenue recognition: when is it revenue and when it is not? Fair value and industry accounting issues Session 3: Observing the role of international accounting standards (IAS) and future issues as they apply to oil and gas companies Overview of critical issues related to international petroleum accounting Observing the role of international accounting standards (IAS) in the future of financial statements for oil and gas companies Where they came from What does it mean to companies now and in the future Value chain and significant IAS accounting issues Upstream Oil and Gas specific differences between IAS and U.S. GAAP Session 4: Analysis of international oil companies financial statements – Part 1 This two-part session will continue with topics covered in the prior session on IAS by applying them to financial statement analysis. Delegates will learn 10 important factors in reading and analysing the financial statements of international oil companies. The main focus will be on learning how to analyse the company’s success in exploring and producing oil and gas reserves and understanding the concept of competitive benchmarking of the company against other energy companies. This session is helpful in gaining knowledge as a business professional working in the energy industry, a potential investor or lender in the oil and gas industry and an individual seeking employment in this industry. Delegates will analyse the financial statements of a leading international oil company. Topics covered include: Energy ratios specific to oil and gas companies Reading oil and gas reserve disclosures Analysing production replacement and reserve replacement Analysing finding costs and reserve replacement costs Reserve life index Key profitability indicators Day 2 Optimising Budget Models and Capital Investment Analysis Session 1: Analysis of international oil companies financial statements – Part 2 The second part of this two-part session will continue with topics covered in the first part. Delegates will analyse the financial statements of leading international oil companies. Case studies and Excel applications Bloomberg applications Session 2: Competitive benchmarking This session will cover the critical topic of competitive benchmarking. When companies compare themselves to their peers, they usually have a number of the following significant advantages over outsiders: They thoroughly understand the industry or sector They often have employees that have recently transferred from the peer companies (this provides them an inside look at costs, wages, management, special problems, and a host of other perspectives – this information is difficult to obtain for individual investors) If a competitor produces a product, the benchmarking companies often have the engineering wherewithal to reverse engineer, test, and thoroughly understand what the competition has, has done, or is doing Session 3: Capital budgeting and risk analysis in the oil and gas industry Valuation of Oil and Gas assets is a critical and challenging process. The uncertainty of production, prices, capital costs and construction delays, among other factors, makes it difficult to value projects. In this session, leading analytical skills and techniques used in Excel will be discussed and illustrated using real case studies on financial forecasting and analysis. Recap of traditional capital budgeting methods Net Present Value (NPV), Internal Rate of Return (IRR), modified IRR, payback period and discounted payback period Advanced analytical skills, techniques, and challenges in oil and gas capital budgeting including: Oil and gas production, oil and gas prices, cost of capital, construction costs, and startup delay Session 4: Case study applications and open discussion of crucial issues Attendees will analyse case studies of actual international firms operating in the oil and gas industry to further explore issues covered in the sessions covered today. Attendees will also have the opportunity to discuss crucial issues facing them with delegates in attendance. Open discussion will follow with suggestions and recommendations. This is an excellent opportunity to interact in a stimulating group setting with other participants.