E&P FINANCIAL ANALYSIS
This programme is designed to strengthen the skillset of personnel involved with E&P Financial Operations, Analysis and Management.
It will address key topics providing a more than fundamental understanding of subjects which are key to efficient management of financial revenue.
This learning is crucial, as it provided directly applicable knowledge to participants, while addressing gaps in their understanding. Participants are encouraged to ask questions to clarify cases and instances of misunderstanding or problematic in their day jobs.
Who should attend: All persons who are involved in E&P Financial Operations, Analysis and Management
- Budgeting
- Fundamentals of budgeting and financial planning
- Types of budgets: OPEX, CAPEX, revenue and cash-flow budgets
- Budgeting cycle and annual planning process
- Budget vs. forecast vs. actuals
- Budget assumptions and key economic drivers
- Revenue & Revenue Recognition in Oil & Gas (E&P)
- Revenue fundamentals in accounting
- Revenue streams in upstream E&P
- Take-or-pay and other contractual considerations
- Revenue deductions: royalties, taxes, transportation and other adjustments
- OPEX & CAPEX — General Accounting and E&P Operations
- General Accounting Concepts
- E&P OPEX Composition
- E&P CAPEX Composition
- OPEX/CAPEX Analysis (Overview)
- P&L Account and EBITDA
- Understanding the E&P income statement
- EBITDA calculation and interpretation
- EBITDA vs. EBIT vs. net income
- P&L-to-cash-flow relationship
Practical exercises:
- Prepare an E&P field annual budget and analyse budget vs. actual performance
- Calculate E&P revenue from production volumes, pricing and contractual deduction
- Classify typical E&P transactions as OPEX, CAPEX or other accounting treatment