Oil & Gas Modeling
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 course is sold as a hard-copy manual with a corresponding PDF (shown below) and no video component.
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.
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
Wall Street Prep’s Oil & Gas Modeling course is used at top financial institutions and business schools.
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.
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.
Macabacus Excel Plugin
Free access to Macabacus, all-in-one suite of time-saving tools designed for people who build financial models in Excel. Use keyboard shortcuts for common number formats, to cycle rapidly through different font and color schemes and to navigate a formula’s inputs across worksheets and workbooks. Easily understand long formulas with the powerful ‘Precedents’ and ‘Dependents’ Tool, and much more. This 6-month free access is for the full version of Macabacus that also includes essential tools for Powerpoint and Word!
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.
- 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.
Oil & Gas Modeling Reviews
I am a junior in college and enrolled in the Oil and Gas course to familiarize myself with this type of financial modeling. I am enjoying the accessibility of the material and how it’s laid out in an easily readable format.
I was trying to enter into IB with no previous financial modeling education and I wanted to learn how to actually build a financial model of an O&G company. Other IB professionals in my local CFA society took this course as well, so I signed up.
The course is excellent. Wall Street Prep showed me how a model is actually built in Excel while the CFA was a good theoretical complement to some of the accounting choices done in the model.
The books are elegantly presented and I will keep them at hand in my new job. I got hired as a FT IB analyst after completing my BSc and with no previous financial experience. This course + the CFA were an excellent combination which prepared me well for interviews!
The Wall Street Prep Quicklesson Series
7 Free Financial Modeling Lessons
Get instant access to video lessons taught by experienced investment bankers. Learn financial statement modeling, DCF, M&A, LBO, Comps and Excel shortcuts.