EXECUTIVE EDUCATION

Strategic Financial Skills for the Energy Industry

Key Topics

In a series of information-packed class sessions, you'll learn the essentials of the business side of the energy industry. By the end of the week, you'll have a working knowledge of each of these areas of financial management.

Value Creation

• Focusing on the creation of value rather than operational measures of success
• How managerial decisions impact the firm's value

Capital Investment and Project Evaluation

• Basic discounted cash flow (DCF) concepts
• Estimating cash flows and determining the appropriate cost of capital
• Comparing capital expenditure techniques: payback, IRR, NPV, etc.
• Reappraising the project decision: some "softer" issues to consider after the numbers have been run

Financial Accounting Techniques

• Understanding the three primary financial statements: income statement, balance sheet, and cash flow statement
• Distinguishing between reported profit and cash flow
• Analyzing published oil and gas company annual reports
• Reporting the results of oil and gas firms: Full-Cost vs. Successful Effort vs. Standardized Measure data required by the SEC

Financial Planning and Forecasting

• Planning the firm's sustainable growth
• Estimating future financing needs based on pro-forma statements and other projections
• Making short-term vs. long-term financing decisions
• Planning for growth or decline

Measuring Performance

• Measuring performance of both business units and individual managers
• Interaction between measurement systems and company strategy
• Evaluating performance in times of uncertainty

Performance Management

• Aligning incentive compensation and strategy
• Designing incentive plans based on Economic Value Added principles
• The Balanced Scorecard approach

Financing Large Energy Projects

• Comparing project financing to internal financing
• Creating value by efficiently allocating risk
• How capital markets evaluate risk and return in infrastructure projects
• Assessing bond rating process

Financial Engineering

• Demystifying derivatives
• Understanding forwards, futures, swaps, and options
• Weighing the benefits and risks of hedging programs