Oil & Gas Economics 101

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SEMINAR DETAILS

CPE: Recommended 7.5 hours
Program Level: Basic to Intermediate
Field of Study: Specialized Knowledge and Applications
Prerequisites: None. No advance preparation needed.
Instructional Delivery Method: Group Live
Cost: $898
Schedule:  8am – 4pm. Lunch is provided at 12pm.

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    Brief:

    This course is designed to train employees on the basic concepts of finance, economics, and financial statements. There are multiple examples which are specific to oil and gas companies but could be applied to all industries. Students will learn the concepts and applications behind:

    Net Cash Flow
    Economic Concepts
    Performance Measures
    Fundamentals of Financial Statements
    Hedging Primer
    Full Cost Accounting
    Taxes: Cash versus Book

    Who should attend:

    This course is geared for employees who want to learn how oil and gas investment decisions are made, and how those decisions flow through to a company’s financial statements. No accounting background is required, therefore it is suitable for professionals and analysts in engineering, geology, accounting, treasury, investor relations, marketing, land, legal, HR, IT, etc.

    Agenda

    AGENDA: OIL AND GAS ECONOMICS 101

    SECTION I – Morning

    1. Purpose of Economics
      1. Investment Evaluation – Converting Technical Data into Financial Data
      2. Compare Investments / Projects – Apples to Apples is Good for Business
      3. Provide Insights into Risks and Rewards – Does Bigger mean Better?
      4. Investment Decisions – Is it Time to make the Donuts?
      5. Acquisition / Divestment Analysis – Sold!
    2. Definition of Net Cash Flow
      1. Characteristics – Cash Inflows versus Outflows
      2. An Example – Drill an Oil Well or Buy a Rental Property?
      3. Components – Time to Get into the Weeds
      4. More Examples – Time to Get into the Dirt
    3. Economic Concepts
      1. Opportunity Cost – Is there Something Better Out There?
      2. Time Value of Money – Why a Dollar Today is Worth More than a Dollar Tomorrow
      3. Discounting and Present Value – Who Knew Calculating Interest could be so Much Fun!
    4. Financial / Economic Performance Measures
      1. Net Cash Flow – A Time to Remember
      2. Payout – When Will I get my Money Back?
      3. Return on Investment, Discounted Return on Investment, and Present Value Index – It’s Bang for the Buck
      4. Net Present Value at X% – Back to the Bigger is Better Question
      5. Internal Rate of Return – The Interest Rate of an Investment

    SECTION II – Afternoon

    1. Fundamentals of Financial Statements
      1. Balance Sheet – It’s the Water in a Bathtub Combined with the Water Bill
      2. Income Statement – AKA Profit & Loss
      3. Cash Flow Statement – Exactly how much $ do I have in my Checking Account?
    2. Hedging Basics for Oil and Gas Producer
      1. What is a Hedge? – Is it like a Derivative?
      2. Why Hedge? – To Hedge or Not to Hedge
      3. Mechanics of Hedging – An Example of a Swap
    3. Full Cost Accounting for an Oil and Gas Producer
      1. Definition – A Pool, Not a Bathtub
      2. An Example – It’s Crunch Time
      3. Full Cost Ceiling Test – A By-Product of Full Cost Accounting
    4. Taxes: Cash versus Book
      1. Definitions: Cash Taxes, Book Taxes, Deferred Taxes –The Tax Man Cometh
      2. An Example – A Little More Crunch Time

     

    inhouse

    This seminar is also available as an in-house seminar brought to your office. Contact us for more details.

    Not Convinced?

    See what others had to say about Energy Seminars:

    This was one of the better training classes I have attended in the 25 years I have been working.  The instructor was very knowledgeable and made the content interesting!!

    —C. Christoff, EQT Corp.

    ALL new hires should take this course first.

    —C. Yaniga, Access Midstream

    Excellent foundation in the basics presented in understandable, plain English with helpful anecdotes and stories.

    —Carole Katz


    Budgeting for Oil & Gas Companies

     

    You can never know enough! Budgeting for Oil & Gas Companies is designed to provide employees with a bottoms-up understanding on how to forecast the financial statements for an oil and gas producer. Students are guided step by step on how to model the Income Statement, Balance Sheet, and Cash Flow Statement on a monthly basis.

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    Register for Budgeting for Oil & Gas Companies Today!

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    cpe_sponsors_logo

    Energy Seminars, Inc. 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.learningmarket.org
    Refund Policy: If the registrant or his or her agent cancels a registration 3 days or more prior to the seminar date, Energy Seminars, Inc. (ESI) will impose a cancellation fee of $35 if paid by check, money order, VISA, or MasterCard, or $50 if paid by AMEX. If the registrant is a no-show or the registration is canceled less than 3 days prior to the seminar date, ESI can offer only a letter of credit to any future seminar.

    For more information regarding our complaint and refund policies, please telephone our offices at 281-362-7979.