Oil & Gas Modeling Course

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Oil & Gas Modeling Course

Designed for finance professionals pursuing Oil & Gas careers, this course provides an in-depth look at the industry, including O&G accounting and financial statement analysis, O&G projection drivers and Net Asset Value modeling. Please note, this Oil and Gas Modeling course is sold as a PDF E-book and no video component.

$499 Add to Cart

Course Objective

At completion, trainees will have developed a complete Oil & Gas model using various supporting schedules

Trainees develop an Oil & Gas (O&G) financial model completely from scratch, inputting historical data as well as macro– and company-specific assumptions to project out financial statements using step-by-step instruction on selecting, locating, and developing appropriate projection drivers. At completion, trainees will have developed a comprehensive O&G model using various supporting schedules. Trainees build O&G models using Excel templates and the exact way they would on the job.

This course is used to train new hires at:

What You Will Learn

Industry Accounting & Financial Statement Analysis
Financial Statement Modeling
Net Asset Value (NAV) and DCF modeling
Accretion/dilution (M&A) modeling
Leveraged buyout (LBO) modeling
Excel mechanics and functionality for the O&G industry
Comparable company analysis
Comparable transaction analysis
Financial & valuation modeling best practices

Course Samples

Oil & Gas NAV Modeling Guide Sample

Oil & Gas Modeling Industry Primer Sample

Sample Oil & Gas Modeling Template

Course Highlights

Intuitive, Self-Paced and Comprehensive

Wall Street Prep’s Oil & Gas Financial & Valuation Modeling Self Study Program is intuitive and self-paced. You should expect to spend approximately 100 hours to complete it. The program uses approximately 700 pages of tutorial guidance and Excel model templates to teach students how to build, analyze, and interpret Oil & Gas financial and valuation models in a step-by-step fashion, at their own pace.

Real World “On the Job” Investment Banking Training

The Oil & Gas Financial & Valuation Modeling Self Study Program bridges the gap between academics and the real world to equip O&G finance and industry professionals with the practical financial skill set they need on the job. The program utilizes a case study format, as students follow their tutorial guide alongside the Excel model templates, and are directed to the appropriate external documents (SEC filings, research reports, etc.) in order to build complex O&G Financial & Valuation models the way they would on the job.

Support Center

Upon enrollment, students gain 24-month free access to Wall Street Prep’s Online Support Center, where they receive answers to questions, free downloads, and important updates.

Private Online Tutoring (Additional Fee Applies)

Want a little extra attention? Live video-chat tutoring is available with experienced investment bankers for a fee of $199/hour. In addition, your tutoring sessions enable you and your tutor to share models, a virtual blackboard and any other files via an integrated web and phone platform that enhances the learning experience.

Prerequisites

This course does not assume a prior background in Oil & Gas Modeling. However, those who enroll should have an introductory knowledge of accounting (e.g. interaction of balance sheet, cash flow, and income statement) and proficiency in Excel. Students with no prior background in Accounting should enroll in the Accounting Crash Course. Students with limited experience using Excel should enroll in the Excel Crash Course.

Course Agenda

Introduction to O&G accounting & financial statement analysis

Participants will understand dynamics of the O&G industry and the factors determining crude oil and natural gas prices
Learn the different business segments – upstream, midstream, and downstream – that make up the O&G industry
Learn O&G terminology, units, and key terms
Distinguish between full-cost and successful efforts accounting methods and their impact on financial statements and on financial statement analysis
Learn the structure and layout of the O&G financial reports and filings (i.e. 10-K, 10-Q, annual report)
Learn how to analyze and interpret O&G financial statements, footnotes, and disclosures
Understand how to perform O&G reserves and production ratio analysis

Introduction to O&G financial modeling

Building comprehensive O&G financial models from scratch the way it is done at major financial institutions.
Forecasting crude oil and natural gas prices
Understanding the role of price and volume hedges
Standard formatting best practices.
Excel best practices, efficient formula construction, and appropriate driver selections
Learning to use data tables to present various sensitivities to projected financial metrics
Balancing the balance sheet accounts, including excess cash and revolver
Fixing circularity problems, iteration, and other common modeling troubleshooting
Balancing sheet / cash flow statement crosschecks

Overview of O&G valuation modeling

Relative vs. Intrinsic value
Modeling techniques
Calculating and interpreting multiples
Useful Excel shortcuts and functions
The “football field”

Building an O&G Net Asset Valuation (NAV) model

Project cash flows for each major project and field to derive the value of E&P segment
Learn how to value in-ground versus producing reserves
Understanding proper valuation methodology and drivers for each major O&G business segment
Estimating the weighted average cost of capital (WACC) and common pitfalls to avoid
Using data tables to analyze a broad range of scenarios given different assumptions

Building an O&G trading comps model

Set O&G evaluation benchmarks & select comparable companies
Gather appropriate financial history and projections
Normalizing operating results and calculating LTM operating results
Exclude nonrecurring charges, normalize for stock option expense
Calculate shares outstanding using the treasury stock method
Input financial data & calculate and interpret financial and market ratios
Presenting trading comps by structuring output schedule
Selecting key valuation multiples using the VLOOKUP function and generating multiple tables

Building an O&G transaction comps model

Similarly to trading comps, trainees set O&G evaluation benchmarks, select precedent O&G transactions, gather appropriate financial details, input financial data, and calculate and interpret financial and market ratios
Calculating purchase premiums
Understanding pricing structures (fixed vs. floating, collars, and walk-away rights)
Best practices for incorporating synergy assumptions and appropriately calculating unaffected pre-deal share prices

Building an O&G M&A modeling

Participants will build an O&G merger model in Excel to reflect the pro forma impact of various acquisition scenarios.
Topics covered include a quick test of accretion-dilution in all-stock deals, pricing structures (exchange ratios/collars/”walk-away” rights), purchase accounting, the step-by-step allocation of purchase price, and the derivation of important O&G metrics and ratios.

Earn CPE Credits with WSP Online Courses

Wall Street Prep is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org.