Oil and Gas
Oil and Gas | Commercial and Risk Analysis
Fundamentals of Oil and Gas Property Acquisition and Finance
Format and Duration:
3 days
This course is designed for industry professionals requiring an understanding of the unique aspects of oil and gas property transactions. The course will focus on the skills required in evaluation (both buy-side and sell-side), financing, acquisition, and exploitation planning for an oil and gas entity. It will include a real-world acquisition case which will examine undeveloped reserves, pipeline facilities, and competitive bidding. Participants will gain an appreciation for the unique and specialized aspects of energy transactions as well as the nuances of forecasting product price, cost, and capital availability for successful business development.
Feedback
Excellent course reviewing all critical components of A&D supplemented with many examples from industry. Instructor provided a wealth of information through his many years working on both sides of transactions. Would strongly recommend this course to anyone in a business development group/function regardless of discipline.
Schedule
Duration and Training Method
This ia a three-day course comprising lectures, case studies and a team-based acquisition exercise in which participants will analyze the transaction, competitively bid to acquire the property, arrange financing, and plan to exploit the property post-closing. The exercise considers both an asset and corporate shares acquisition with pre- and after-tax cash flow analysis. Spreadsheet modeling and risk simulation of the transaction are included.
Participants are required to bring a laptop loaded with Microsoft Excel to the course.
Participants will earn 2.4 CEUs (Continuing Education Credits) or 24 PDHs (Professional Development Hours).
Course Overview
Learning Outcomes
Participants will learn to:
- Describe the unique aspects of oil and gas acquisitions.
- Evaluate an asset financially.
- Analyze the need for due diligence.
- Determine reserves.
- Describe structured finance.
- Apply competitive bid theory.
- Generate basic economic valuations.
- Examine joint venture structures.
- Generate simple cash flow analyses.
- Understand the difference between value and price.
- Assess the rationale for choosing a particular acquisition with regard to selection process with several alternatives.
Course Content
Topics Covered
- Introduction to Oil and Gas Transactions
- Review of Cash Flow Analysis
- Unique Aspects of Oil/Gas Acquisitions
- Reserves and Cost Forecasting
- Pipeline Operation
- Environmental Considerations in Acquisition
- Structured Finance and Hedge Strategies
- Competitive Bid Theory
- Project Capital Scheduling
- Expected Value and Simulation of Forecasts
- Management Presentation Preparation
Course Agenda
Day One
- Introduction to merger & acquisitions
- Models
- Reserve forecasting
- Cash flow analysis
- Acquisition finance
- Case study 1
Day Two
- M&A process details
- Oil price forecasting
- Gas price forecasting
- Oil transportation
- Due diligence
- Capital sources
- Reserve-based lending
- Case study 2
Day Three
- Hedging
- Risk considerations
- Environmental aspects of transactions
- Purchase-sale agreement review
- Project finance
- Case study 3
- Game theory
- Bidding
Who Should Attend and Prerequisites
This class is designed specifically for industry professionals with an interest in advancing their career by joining a buy-or-sell-side team on their own or their company’s behalf. The approach is entirely practical as opposed to academic, and relies on the instructor's 40+ years of experience in the aspect of corporate development.
Instructors
Gerald Henderson
Background
Gerald Henderson, a petroleum reservoir engineer, is a global energy executive, trusted advisor to corporate management and boards, educator, energy expert for law firms, trustees in bankruptcy proceedings, and judges. He is an advisor and principal in numerous merger, acquisition, divestures and public and private financings. He has created and managed exploration and production companies, special-purpose project companies, and consulting organizations. He advises on asset valuation and exit strategies. He has a deep understanding of the world-wide oil and gas value chain from land acquisition and exploration through power distribution and energy marketing in many forms. He brings a keen awareness of the geopolitical, economic, commercial, operational and technical risks, as well as hands-on experience advising many companies representing multi-billion-dollar capital investments.
Mr. Henderson started his professional career with the Atlantic Refining Company. His family was involved with the pipeline business and he worked as roustabout, roughneck, and geophysical recorder in the oil fields while completing his undergraduate and graduate education. He has attended numerous post graduate courses in managerial sciences, operations research, and advanced mathematics. His publications are in computer application to reservoir management, reserve optimization and the business aspects of the industry.
As an avocation, Mr. Henderson teaches and facilitates adult education short courses in American Literature for the Oshner Institute in association with the University of Denver.
Affiliations and Accreditation
MS Missouri University of Science and Technology
BS Missouri University of Science and Technology
Courses Taught
N603 - Fundamentals of Oil and Gas Property Acquisition and Finance
N620 - Fundamentals of Petroleum Industry Economics
N819 - Working within Joint Venture Partnerships
Accreditation and Certification
CEU: 2.1 Continuing Education Units
PDH: 21 Professional Development Hours
Certificate: Certificate Issued Upon Completion
RPS is accredited by the International Association for Continuing Education and Training (IACET) and is authorized to issue the IACET CEU. We comply with the ANSI/IACET Standard, which is recognised internationally as a standard of excellence in instructional practices.
We issue a Certificate of Attendance which verifies the number of training hours attended. Our courses are generally accepted by most professional licensing boards/associations towards continuing education credits. Please check with your licensing board to determine if the courses and certificate of attendance meet their specific criteria.