Module 1: Foundational Financial Modeling Principles for Energy

• • Best practices in modeling structure, design, and formatting
  • Setting up the modeling timeline: historical vs. forecast periods and periodicity (monthly, quarterly, annual)
  • Creating the assumption block for key technical and economic drivers (e.g., price deck, inflation)
  • Using Excel features for auditing and debugging O&G models
  • Introduction to the three core financial statements and the circularity resolution
  • Practical session: Designing a standardized, flexible input and assumption sheet for an integrated O&G model.

Module 2: Upstream (Exploration & Production) Modeling

• • Modeling capital expenditure (CAPEX) for field development (Drilling, Completion, Facilities)
  • Operating expenditure (OPEX) modeling: Fixed vs. variable costs and cost escalation
  • Incorporating the Time Value of Money (TVM) into expenditure phasing
  • Handling sunk costs, dry hole costs, and unsuccessful exploration expenditures
  • Linking CAPEX and depreciation/amortization schedules (DD&A) to the Balance Sheet
  • Practical session: Building a detailed CAPEX schedule for a 5-well drilling program, linking expenditure profiles to the Income Statement's DD&A.

Module 3: Oil and Gas Reserve and Production Modeling

• • Understanding and translating reserve classifications (Proved, Probable, Possible) into financial forecasts
  • Modeling production profiles: plateau rates, decline curve analysis (Exponential, Hyperbolic)
  • Creating production schedules for multiple wells and fields
  • Calculating reserve replacement ratio and finding & development (F&D) costs
  • Integrating production volume forecasts into the revenue calculation
  • Practical session: Constructing multiple production decline curves using technical parameters and aggregating volumes to forecast total field output over 20 years.

Module 4: Midstream (Transportation & Storage) Modeling

• • Modeling pipeline and processing facility throughput volumes and utilization rates
  • Calculating transportation fees (tarrifs) based on distance, volume, and contractual terms
  • Modeling fixed and variable costs associated with midstream operations and maintenance
  • Incorporating regulatory constraints and capacity expansion CAPEX
  • Analyzing the impact of 'take-or-pay' contracts on revenue and profitability
  • Practical session: Building a revenue and cost model for a new gas pipeline, incorporating tariff structure and capacity assumptions.

Module 5: Downstream (Refining & Marketing) Modeling

• • Modeling refining complexity, capacity utilization, and gross refining margins (GRMs)
  • Analyzing the crack spread and calculating product yields (Gasoline, Diesel, Jet Fuel)
  • Forecasting feedstock costs (Crude Oil) and inventory valuation methods (FIFO/LIFO)
  • Modeling retail network revenues, costs, and non-fuel revenue streams
  • Calculating conversion costs and plant efficiency metrics
  • Practical session: Modeling a simple refinery operation, focusing on feedstock input costs and the resulting revenue from multiple product outputs based on GRMs.

Module 6: Advanced Valuation Techniques (DCF for O&G)

• • Calculating Free Cash Flow to Firm (FCFF) and Free Cash Flow to Equity (FCFE) for energy projects
  • Determining the Weighted Average Cost of Capital (WACC) in a project finance context
  • Calculating the Net Present Value (NPV), Internal Rate of Return (IRR), and Payback Period
  • Introduction to the concept of Adjusted Present Value (APV) for complex financing structures
  • Calculating specialized O&G metrics: Net Asset Value (NAV) per Barrel and Economic Limit
  • Practical session: Performing a comprehensive Discounted Cash Flow (DCF) valuation for an E&P project and calculating its NPV, IRR, and Economic Limit based on price deck.

Module 7: Capital Structure and Financing Modeling

• • Modeling debt schedules: principal repayment, interest calculations, and debt service coverage ratio (DSCR)
  • Structuring Project Finance debt: mini-perms, reserve-based lending (RBL), and covenants
  • Incorporating equity financing and calculating dilution impact
  • Modeling revolving credit facilities (RCFs) and mandatory debt sweeps
  • Linking debt and equity flows to the cash flow statement and balance sheet
  • Practical session: Building a complete RBL debt schedule, calculating the DSCR over the life of the loan, and ensuring all debt movements tie out to the financial statements.

Module 8: Modeling Risk and Uncertainty (Sensitivities & Scenarios)

• • Setting up one-way and two-way data tables for sensitivity analysis (e.g., price vs. volume)
  • Designing multiple future commodity price scenarios (High Case, Base Case, Low Case)
  • Using Monte Carlo Simulation concepts to model probability distributions (conceptual overview)
  • Calculating Value at Risk (VaR) and Conditional Value at Risk (CVaR) for O&G portfolios
  • Implementing dynamic stress tests related to geopolitical events or regulatory changes
  • Practical session: Creating a two-way data table to show the project's IRR sensitivity to changes in the oil price deck and the production decline rate.

Module 9: Tax, Royalties, and PSC Modeling

• • Modeling ad-valorem (percentage of revenue) and volumetric royalties
  • Calculating corporate income tax specific to the O&G sector (depletion allowances, capital cost recovery)
  • Detailed modeling of a Production Sharing Contract (PSC) split, including Cost Oil, Profit Oil, and Government Take
  • Incorporating tax holidays and ring-fencing issues in the model
  • Analyzing the fiscal impact of different contractual structures (PSC vs. Concession)
  • Practical session: Building a PSC model that calculates Cost Oil recovery, Profit Oil split, and the resulting cash flow to the Investor and the Government.

Module 10: Integrated Financial Statement Modeling

• • Building the Income Statement, Balance Sheet, and Cash Flow Statement linkage
  • Ensuring all three statements balance (Balance Sheet check) and tie-out correctly
  • Forecasting key balance sheet accounts specific to O&G (e.g., PP&E, Deferred Tax Assets, Inventory)
  • Calculating and analyzing key financial ratios (Debt/EBITDA, Return on Capital Employed)
  • Designing professional summary pages and tear sheets for external reporting
  • Practical session: Completing the full integration of the three financial statements for the O&G project, and performing a final model audit and ratio analysis.

📌 Participant Requirements

• Participants must have a good command of English.
• Applicants must meet the admission criteria set by Dataex Global Institute.

📄 Terms & Conditions

🎁 Group Discount

Organizations that sponsor four (4) participants will receive a complimentary slot for a fifth participant.

💼 What Course Fees Cover

The training fee includes:

• Comprehensive learning materials
• Daily lunches, teas, and snacks
• Certificate of Participation upon successful completion

Note: Participants are responsible for their own:

• Travel and accommodation
• Visa application and insurance
• Personal expenses

🎓 Certification

All participants will receive a Certificate of Participation at the end of the training.

🔄 Course Content

The program outline provided is for guidance only. Dataex Global Institute reserves the right to update course content as part of our continuous improvement process.

✅ NITA Accreditation

Our programs are approved by the National Industrial Training Authority (NITA). Organizations may claim reimbursement in accordance with NITA regulations.

📝 How to Register

To secure your place:

• Email the Training Officer at training@dataexglobalinstitute.com to request a registration form.
• Or call us directly at +254 725 012 095.

Early booking is encouraged as spaces are limited.

💳 Payment Options

Please make payment at least 5 days before the training start date. Choose from the following options:

1. Cheque Payments (for groups of 5 or more): Payable to
   Dataex Global Training & Development Center Limited
2. Invoice: We can issue an invoice to you or your organization.
3. Bank Deposit: Account details will be provided upon request.

❌ Cancellation Policy

• A non-refundable registration fee of 15% is included in the course fee.
• Cancellations made 14 days or more before the training start date are eligible for a refund (excluding the registration fee).
• No refunds will be issued for cancellations made within 14 days of the training. However, participants may:
• Transfer their registration to a future session, or
• Nominate a substitute participant (subject to eligibility).

🛠️ Tailor-Made Training

Need a customized session for your team? We offer bespoke training for groups of 5 or more, delivered:

• At our Training Centre, or
• At a location of your choice

To request a tailored program, contact us at: 📞 +254 725 012 095
📧 training@dataexglobalinstitute.com

🏨 Accommodation & Airport Transfers

We can assist with accommodation and airport transfers upon request, at an additional cost.
For arrangements, please contact the Training Officer.