Workshop Objective

By the end of this workshop you will be able to:

• Read and understand oil and gas financial statements
• Identify financing alternatives available to oil and gas companies
• Make a long- and Short-term financial decision
• Determine the sustainable Rate of Growth
• Understand the processes of forecasting and budgeting 
• Understand risk and valuation concepts
• How to develop the company’s cost of capital
• Determine market value added and economic value added
• What are the various financial issues associated with international operations

 Workshop Outline

1.      Overview of Oil and Gas Accounting:

• Successful Efforts and Full-Cost Accounting;
• DD&A and accounting for impairment of proved properties

2.      An Introduction to Financial Management

• What is a Firm?
• Legal Forms of Business
• The Corporation and Financial Markets
• Financial Management Axioms

3.      How to use financial information:

• Financial Statements: An Overview
• Financial Statements in Oil and Gas Companies
• Financial Statements Analysis
• Using Ratios
• Financial and Operating Ratios of the Oil and Gas Industry;
• Benchmarking

4.      How to Make a Short-term Financial Decision:

• Cash Conversion Cycle;
• Working Capital Management;
• Cash Management Programs and Techniques
• Credit Evaluation;
• Cash Budget

5.      Forecasting and Budgeting:

• Percent of Sales Method
• Sustainable Rate of Growth
• Nature and Objectives of Budgeting
• Managing the Budgeting Process;

6.      How to make Long-term Financial Decisions:

• Capital Structure and Financial Structure 
• Capital Structure and Sources of Funds
• the Right Mix of Debt and Equity;
• Capital Budgeting;

7.      Risk and Valuation Concepts:

• Determining the WACC
• Finding an appropriate discount rate
• Valuing for uncertain events

8.      Value Added

• Market Value Added
• Economic Value Added

9.      Financial Aspects of International Operations:

• Determining International Oil and Gas Prices,
• Parent and Subsidiary Perspectives in Project Evaluation and Risk Exposure with International Projects

Who Can Benefit

• Controllers, senior finance managers, executives and Staff working in the finance and commercial departments.

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