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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.
MORNING SESSION (9-11AM) Introduction to financial modeling Overview of financial modeling Understanding projections Modeling techniques Excel best practices foundation and exercises Useful Excel shortcuts and functions Gathering historical documents/information MIDDAY SESSION (11AM-3:30PM) Building the O&G model , step-by-step Setting up the core financial statements Projecting commodity prices and production levels Projecting income statement for each major O&G segment Working capital, Depreciation & amortization (PP&E), and Other balance sheet items. Shareholders equity & Shares Outstanding Debt & Interest AFTERNOON SESSION (3:30-5PM) Improving the finished product Controlling circular references using automated circuit breakers Balancing the model
Scenario analysistoggles and data tables
MORNING SESSION (9-11AM) Overview of valuation modeling Enterprise value vs. Equity value Relative vs. Intrinsic value Calculating and interpreting multiples (PE ratios, EBITDA multiples, etc.) The football field AFTERNOON SESSION (11AM-5PM) Participants build a complete working NAV model. Training encompasses the following: Projecting cash flows for each of the O&G companys segmentsupstream, midstream, and downstream 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
Setting up a control area for assumptions Inputting O&G deal assumptions (% cash vs. stock consid- MORNING SESSION (9-11AM) erations, purchase premium, asset write-ups, advisory fees, M&A modeling overview financing fees, and severance fees. Purchase accounting Calculating shares outstanding using the treasury stock Accretion/dilution overview and exercise method Common pricing structures Appropriate treatment of convertible securities Allocating purchase price and calculating goodwill Preparing the pushed-down balance sheet AFTERNOON SESSION (11AM-5PM) Making pro forma balance sheet adjustments Building the O&G accretion/dilution model Calculating Sources & Uses of funds Deriving O&G metrics and ratios Inputting operating & synergy projections Sensitivity analysis using data tables Calculating the stub year period Break-even and contribution analysis Building a pro forma income statement and making appropriate deal-related adjustments to arrive at accretion/dilution per share. Error-checking a merger model and inserting circuit breaker switches where appropriate. Sensitivity analysis: EPS accretion/dilution in stock vs. cash deal; interest rate assumptions, premium paid. Pre-tax synergies required to break-even, and break-even PE analysis Revenue, EBITDA, net income, and production contribution analysis Taxation issues, including deferred taxes created by the step-up of asset values Legal considerations in acquisitions, including divestitures, merger vs. consolidation, antitrust issues, minority freez-outs, hostile takeovers. Phone: 800-646-3575 ext. 709 | Fax: 800-646-3575 | E-mail: alibman@wallstreetprep.com
MORNING SESSION (9AM-1PM) Trading Comps Overview Overview of O&G trading comps modeling Selecting comps and gathering appropriate documents Spreading comps and normalizing operating results for LTM calculations in Excel Calculating shares outstanding using the treasury stock method Selecting and presenting multiples AFTERNOON SESSION (1PM-5PM) Transaction Comps Overview Overview of O&G transaction comps Spreading transaction comps in Excel Accounting for synergies Using data tables to analyze a broad range of scenarios
O&G financial statement analysis Reading and analyzing O&G 10-K Interpreting O&G financial and reserves disclosures O&G ratios and ratio analysis
Phone: 800-646-3575 ext. 709 | Fax: 800-646-3575 | E-mail: alibman@wallstreetprep.com
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"Overall, I would rate this training, as well as instructors ability to transfer knowledge of the subjects, and the quality of the handouts and exercises as excellent... This training was highly relevant to the training needs of my associates." Sean Oh, Director, Corporate Finance, SK Telecom As a former banker, Ive been through two of these courses this was the best! Greg Mandel, Thomson, Inc. "This training seminar was excellent . . . I have worked with other vendors and have organized numerous other training programs, but Wall Street Prep clearly stood out. I was extremely impressed with the format of their program and their ability to take fairly difficult concepts and explain it clearly through case studies and examples. Mike Joo, Director Investment Banking, Credit Suisse