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Public Course

Oil and Gas: Accounting, Financial Statement Analysis and Trading Multiples

Regular price $850.00 USD
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  • What you'll learn
  • Course Information
  • What is a Virtual Classroom
  • What you'll learn
  • 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
  • Course Information
  • 9.00am - 5.00pm GMT

    1 day (non-exam)

      • What is a Virtual Classroom
      • Virtual Classroom training is a new and highly engaging way of delivering programs remotely with enhanced levels of interactivity compared to conventional webinars. In AMT’s Virtual Classroom participants are encouraged to activate their own webcams and mics throughout the class allowing for real-time engagement, both verbal and non-verbal, with fellow participants and their trainer. Participants can also share their screens to get instant assistance in any technical exercise; just like asking the trainer to walk over and help in the classroom! We have seen a step-change in participant engagement with this new technology. The trainer’s ability to see a selection of their participants’ faces in real-time, and to react to their verbal and non-verbal cues creates a remarkably realistic classroom-like experience. 


          Who should attend?

          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

          What to use

          You need to use a Windows-based laptop for 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.

          Ask our trainers

          If you have any questions about the course content, you can email our experienced trainers for any further questions

          Contact a trainer

          Contact us