• Advanced Oil & Gas-Budget And Forecasting

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 Course Overview

 

To stay on top, companies must constantly re-examine the budgeting and forecasting models they use in their decision making processes to ensure they are up-todate and incorporate the latest in budgeting and forecasting best practices.

 

Is there an opportunity to expand take advantage of a weaker competitor? Where can costs be optimised? How does a drop of 10% in oil price affect profit? To support all these decisions, sound budgeting and forecasting is essential.

 

This course provides participants with anunderstanding of both the principles of budgeting and
forecasting and the practical application of these to real-world situations through the use of Excel. It then builds upon the principles and practices learned to apply these to build sophisticated budgets and forecasts that are robust, flexible and user-friendly.

 

This course covers budgeting and forecasting for both upstream and down-stream businesses.

 

Masterclass Objectives:

• Improve efficiencies in the budgeting and forecasting processes by gaining valuable skills in advanced Excel functions
• Allow for uncertainty and model different business scenarios
• Apply a sound methodology that will allow complex Budget and Forecast models that are flexible, robust and user-friendly
• Advanced ways of analyzing data to determine trends and using these to forecast future performance
• Utilize external data to enhance the accuracy of forecasts
• Alternate budget methodologies and how to determine which methodology applies best in different situations
• Use the advanced features of Excel to optimize models and achieve maximum efficiency within constraints

 

Key Learning Outcomes:

• Discover a range of techniques to improve the usability and reliability of your budget and forecast models.
• Learn how to integrate budgeting and forecasting and align these processes with your business strategy.
• Create forecasts that properly incorporate imprecise data and allow for uncertainties.
• Gain the confidence that comes from knowing that your budgets and forecasts are robust, accurate, and reliable

 

This program is designed for :

• CFO’s
  
• Business unit & Departmental Managers
  
• Business & Financial Analysts
  
• Finance Managers & Financial Controllers
  
• Budgeting/Forecasting Managers
  
• Financial Advisors & Managers
  

PLUS anyone who is in need of a good understanding of budgeting & forecasting

 

Course Outlines

 

DAY 1

Advanced MS Excel for Budgeting, Forecasting & Financial Modelling
To provide participants with a good working knowledge of the most useful functions in Excel for financial modelling.

1-1 Advanced range names, including formulas and naming conventions
1-2 Advanced conditional formatting, including formuladriven formatting
1-3 Aggregation functions
1-4 Financial functions: IRR, NPV, PV, FV, PMT
1-5 Goal Seek, Solver
1-6 Pivot Tables
1-7 Scenarios, sensitivity, data tables
1-8 Lookup functions: VLOOKUP, HLOOKUP, INDEX, MATCH
1-9 Advanced data validation techniques and controls
1-10 Introduction to macros and user-defined functions

Each function will be explained and taught how to apply in Budgeting & Forecasting throughout this masterclass

 

DAY 2

Advanced Oil & Gas Budgeting & Forecasting
 

Budgeting & Forecasting Re-cap
Overview of the budgeting process and model considerations:
• Types of budget models
• Short-term & long-term models
• Upstream vs downstream models
• Model design & planning
• Best practice design guidelines
• Budgeting vs forecasting

 

Activity 1: Identify Improvements

Attendees will work as a group to apply the knowledge learned to identify improvements to an existing model.

 

Planning the Model
Compare and contrast the different budgeting methods. Determine which model is best suited to various applications.
• Bottom up budget models
• Model development framework
• Zero-Based Budgeting & cost drivers
• Rolling (dynamic) Budgets
• Building flexibility into time series analysis
• Capital expenditure budgeting
• Cash Budgeting
• Determination of Model and Forecast scope and time horizons

 

Activity 2: Excel Refresher

A recap of the most useful Excel functions used in building budgets and forecasts

 

Case Study: Identifying Cost & Revenue Drivers
Attendees will examine a company’s accounts to identify the cost and revenue drivers that will be used in building the budget

 

Activity 3: Building the Model
As attendees progress through the course, they will build a complete budget model. In this activity, attendees build time series and cost driver functionality.

 

Analyzing Historical Data
Learn advanced ways of analyzing historical data and using this to identify trends and forecast future performance.
• Extracting historical data from financial systems & using this to forecast results
• Recognizing patterns in financial data
• Using Exploratory Data Analysis tools in Excel
• Using Excel’s tools to estimate future performance: regression analysis, trend analysis, future period prediction
• Techniques to allow for seasonality

 

Activity 4: Building the Model
Attendees extend their budget models to analyze historical data and develop predictions of future performance.

 

DAY 3

Advanced Oil & Gas Budgeting & Forecasting
Ensuring Integrity
Learn how to ensure the model’s integrity is maintained such that any imbalances are detected quickly.
• Designing the model to incorporate integrity checks and balances
• Effective and efficient methods to ensure model integrity is maintained

 

Activity 5: Building the Model
Attendees extend their budget models to incorporate checks and balances, then present a summarized budget.

 

Sensitivity & Scenario Analysis
Learn how to sensitize inputs to allow for uncertainty, and learn how to incorporate multiple scenarios into budget
models to provide flexibility.
• Performing Sensitivity Analysis
• Overview of Sensitivity Analysis
• Techniques to incorporate multiple “What-if" scenarios in models
• Break-even analysis
 

 

Activity 6: Building the Model
Attendees extend their budget models to allow for multiple scenarios and sensitivity analysis on key inputs.

 

Optimizing Budget Models
Learn how to use the advanced features of Excel to optimize results and achieve maximum efficiency within constraints.
• Different functions and techniques available to optimize models

 

Activity 7: Model Optimization
Attendees work through a practical example of using Excel’s tools and functions to optimize models within various constraints.

 

Using Economic Data
Learn how to enhance budgets and forecasts by incorporating external data.
• Sources of external data
• Using external economic/industry data in models

 

Activity 8: Using Economic Data
Attendees incorporate economic data in their budget model.

 

Model Automation
Discover a range of techniques to improve the usability of budget models:
• Building automation into models to provide a user-friendly interface and simplify model operation

 

Activity 9: Incorporating Automation
Attendees will build user-friendly controls into their budget models to improve usability

 

Key Take Aways:

• CD full of practical templates, exercises & solutions, reference guides, add-ins plus other tools that can be used to efficiently build effective and robust budgets and forecasts
• Experience in designing solutions to real-world challenges and incorporating current economic uncertainties