Finance and Accounting

• The different meanings of ‘Finance’
• Why Finance is important for your business
• Raising finance – you need a Business Plan
• Sources and types of finance
• The financial accounting system
• Recording oil and gas transactions

The key elements of Oil and Gas Reporting

• The major differences between US GAAP and IFRS reporting
• The treatment of exploration and evaluation costs – ‘successful efforts’ or ‘full cost’
• Recognition and valuation of oil and gas assets – tangible and intangible
• Revenue recognition – upstream, midstream and downstream
• Financial analysis techniques – common sizing and ratio analysis
• Analysis and interpretation of Oil and Gas company reports

Accounting as an Information System

• Management Accounting as an effective tool for communication
• Costing oil and gas operations and processes
• Cost-Volume-Profit and break-even analysis
• Oil and gas budgeting – objectives, methodologies and processes
• How to prepare budgets for oil and gas operations
• Analysing variances between budget and actual results

Cost of Capital and Investment Appraisal

• Why you need to know your Cost of Capital
• The cost of equity, cost of debt, and weighted average cost of capital (WACC)
• Identifying new investment opportunities for your oil and gas business
• Basic investment appraisal techniques – ARR and Payback
• Discounted investment appraisal techniques, NPV and IRR
• Capital rationing decisions using the profitability index and Excel solver

Financial Risk Management

• The main types of risk and principles for risk management
• New investment risk in oil and gas operations
• Financing risk
• Interest rate risk
• Foreign currency risk
• The corporate governance requirements for effective risk management