B11: Advanced Budgeting and Forecasting for Oil & Gas (Best Practice) (2 days)

This two-day training course provides participants with a solid introduction to the principles of budgeting and forecasting and the practical application of these to real-world situations.

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Pre-requisites

Although not mandatory, attendees will get a lot more out this course if they complete some online training in Excel functions before attending.

We have partnered with Excel University to provide high-quality, low-cost online training and recommend their Volume 2 Course as good preparation for this course.  If attendees are a little less familiar with Excel, Volume 1 would also very useful.

What you get from this course

  • An Introduction to Budgeting and Forecasting framework within the enterprise: how this can be used to improve performance and gain a competitive advantage.
  • An understanding of the budgeting and forecasting best practices that are being used in today’s O&G companies
  • Understand the budgets and forecasts that are prepared for you

Introduction to Budgeting

  • What is budgeting?
  • Why do organisations make a budget?
  • Steps in creating a budget parts of a budget

Activities: Group discussions & activities

The Budgeting Process

  • Budgeting in large companies
  • Role of the budget in corporate governance
  • Sources of information

Activities: Group discussions & activities

Budget Model Best Practices
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

Compare Budget Methods
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
  • Capital expenditure budgeting
  • Cash Budgeting vs P&L budgeting
  • Determination of Model and Forecast scope and time horizons

Why Budgeting needs to Change

  • Organisational velocity
  • Increasing uncertainty
  • Gaming and politics in forecasting
  • Forecasting conundrum
  • Problems with traditional budgeting and forecasting

Activities: Group discussions & activities

Separating Targets from Forecasts

  • What is the difference between the two?
  • Separating politics from forecasting
  • How is this useful in setting budgets and forecasts?
  • What should remuneration and bonuses be tied to?

Becoming more Agile

  • What are rolling budgets & forecasts?
  • How can these actually be done regularly without requiring vast organizational resources?
  • How can these achieve the dual aims of faster & more reliable forecasts?
  • Using multiple forecasting processes

KPIs

  • What are they really?
  • Get out of your office!
  • How are they relevant to budgeting and forecasting?
  • How can they improve forecast reliability and speed?

Case Study: Identifying Cost & Revenue Drivers
Use of KPIs to analyse past performance and predict future.  Attendees will examine a company’s accounts to identify the cost and revenue drivers that will be used in building the forecast.

Sensitivity & Scenario Analysis

  • Learn how to sensitise inputs to allow for uncertainty, and learn how to incorporate sophisticated scenario analysis 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: Sensitivity & Scenario Analysis
Attendees will participate in a hands-on exercise in how to build multiple scenarios and sensitivity analysis on key inputs into a forecast models then analyse the results.

Optimising Budget Models
Learn how to optimise results and achieve maximum efficiency within constraints.

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

Enterprise Budgeting Solutions
Many smaller organisations use Excel but find this is insufficient when they grow.
What are the limitations of Excel?  How can these be overcome and what should you be looking for in an enterprise-wide budgeting/ forecasting solution.

Demonstration of the budgeting and forecasting process using an enterprise solution, illustrating aspects such as workflow, cost & revenue drivers, what-if scenarios, versioning, top-down & bottom-up forecasting, and the use of different budget approaches for different areas of the organisation.

Agenda Highlights

The course also shows how to apply the principles and best practices learned to Oil and Gas budgets for companies and projects.  It is designed for participants who are new to budgeting and forecasting, and those who have been in operating in this role for some time but would like to update their knowledge to the latest in financial planning and analysis practices.

Lastly, the course addresses the internal issues that arise in large companies: politics, remuneration, resistance to change, organisational hierarchies, and the underlying technologies that enable the change required for effective budgeting and forecasting.

Examine and learn the following: 

  • The need for change: global forces driving companies to update their budgeting and forecasting processes
  • How to allow for uncertainty
  • Why distinguishing between targets and forecasts is critical to success
  • Most applicable types of budgets/ forecasts for each area of the business
  • How to improve the reliability of forecasts whilst also decreasing the time taken to prepare these
  • Alternate budget methodologies and how to determine which methodology applies best in different situations
  • How to optimise budgets & forecasts to achieve maximum efficiency within given constraints

Key learning outcomes

  • Understand the role of budgeting and forecasting within the enterprise.
  • Learn how to integrate budgeting and forecasting and align these with your business strategy.
  • Learn how to handle uncertainty within budget models.
  • Learn how your organisation can become more agile and produce more accurate forecasts faster.
  • Understand how and when to go beyond Excel for budgeting and forecasting solutions, and understand the enterprise-level technologies that can enable this to occur.

Who should attend?

  • CFO’s
  • Business unit & Departmental Managers who want to better understand budgeting & forecasting
  • Finance Managers & Financial Controllers
  • Project Managers
  • Budgeting/Forecasting Managers
  • Financial Advisors & Managers

The typical attendee will be a manager who must direct staff working for him/her in what they should build into their budget and forecast models, and must interact with other managers regarding the budgeting and forecasting process.

Facilitator: Jeff Robson

Masters (Applied Finance), BCom (Accounting & Information Systems), FAIM, F Fin, MAICD, CISA, MS Excel Expert

Jeff is the Principal and Founding Director of Access Analytic, a specialist consultancy that specialises in financial modelling, forecasting, valuation, model auditing, and management reporting for clients worldwide.Jeff Robson

He is known as “The Financial Modelling Guru” because of his extensive experience in financial modelling, forecasting, valuation, model auditing, and management reporting for clients throughout the world.

His achievements have been recognised by his peers and he is a Fellow of both the Financial Services Institute of Australasia and the Australian Institute of Management.

He is skilled in the development and maintenance of analytical tools and financial models for middle-market to large corporate transactions and clients, at all levels of complexity, in both domestic and international settings.

He has worked with companies such as Chevron, BankWest, Petronas, Rio Tinto, Glencore, KPMG, Grant Thornton and Toyota.

He provides training and financial modelling for companies throughout the world.

Before working with Access Analytic, Jeff spent 6 years working in the Corporate and IT Consulting divisions of a large, multi-national Chartered Accounting firm.

Jeff is the author of a number of white papers on financial modelling on subjects such as Financial Modelling Best Practices and Financial Model Auditing.Earlier in his career, he spent five years in banking and finance.

Recent Speaking Engagements

The following are a sample of Jeff’s recent speaking engagements:

  • Hong Kong: 4 day Financial Modelling workshop for Banking & Finance professionals
  • Hong Kong: 3 day Advanced Company Valuation workshop for Banking & Finance professionals
  • Kuala Lumpur: 2 day Advanced Budgeting & Forecasting Course
  • Hanoi:4 days of training in Advanced Budgeting & Forecasting for large Oil & Gas Company
  • Johannesburg: 2 day Advanced Financial Modelling workshop
  • Kuala Lumpur: 4 day workshop on Advanced Financial Modelling for Oil & Gas Companies
  • Perth: 5 day workshop on Excel for Financial Modelling, and Financial Modelling Fundamentals for State Government Dept
  • Perth: 4 day Advanced Financial Modelling workshop for major Oil & Gas Company
  • Kuala Lumpur: 2 day Advanced Financial Modelling workshop
  • Perth: 5 day workshop on Petroleum Resource Rent Tax (PRRT) and Advanced Financial Modelling for Oil & Gas Companies
  • Perth: 2 day VBA Fundamentals course for Mining Services Company
  • Perth: “How to get your bank to say yes!” presentation to over 60 business people
  • Perth: “Business Performance Reporting on a Shoestring” joint presentation with Microsoft at the CPA Congress to over 150 attendees
  • Perth: “Power up your reports with Excel 2007” 3-hour presentation at CPA Congress to over 150 attendees
  • Singapore: 4 day workshop on Advanced Excel and Advanced Financial Modelling for multinational logistics company
  • Tehran, Iran: 3 day Advanced Financial Modelling for Oil & Gas Companies
  • Dubai: 3 day workshop on Advanced Financial Modelling and company valuation
  • Kish, Iran: 5 day workshop on Advanced Budgeting and Forecasting for Oil & Gas companies
  • Johannesburg: 4 day workshop on Advanced Financial Modelling

Benefits & Inclusions

Practical: Highly experienced facilitators who actively and regularly consult to clients also.
Applicable: apply what you learn to your job to further your career.
Hands-on: the course is designed to provide maximum hands-on experience.
Passionate: Our facilitators love this subject!
Clear: we specialise in translating complex subjects into concepts that are easy to understand.
On-going help: you can always e-mail the facilitator.
CD: includes worked examples, suggested solutions, reference materials, and a large variety of templates that can be immediately applied to kick-start your projects.
Comprehensive course notes.
Networking: meet industry peers and hear how they approach this subject.
Certificate of completion.
… and much more!

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Clients who have 3-4 or more people interested in this course normally prefer to run this course on an in-house basis in their offices.

We can bring all the equipment for up to 10 people so all you need is a room!

Benefits

  • Flexibility: we can combine content from multiple courses to create a custom course just for you, add-on a workshop or some mentoring sessions then run everything at the times that suit you.
  • Timing options: if you’re in Perth, we can split courses into half or single days and schedule these at times to suit you
  • No hidden extras: our fixed fee includes all materials and equipment costs for up to 10 participants
  • Cost effective: no extra fees for extra participants (maximum of 8 per session)

In-House Details & Pricing

  • Structure: half-day or full-day sessions
  • Location: all courses are available in-house, many are also available in open sessions
  • Provided: projector, laptops, manual, CD
  • In-house Fees: contact us today to discuss your requirements

In-house Course Fees

Call us on +61 8 6210 8500 to discuss your requirements.

Notes:
– We are happy to customise our courses to suit your requirements
A 10% discount applies when booking 10+ full days of training in any 30 day period
– Many courses can also be split into half-days (please enquire)
– Fees for locations outside of Perth do not include equipment

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B7 Advanced Budgeting & Forecasting for Oil & Gas (Modelling) (3 days)
Learn the secrets of building budgets and forecasts in oil and gas companies that are robust, easy to use and flexible.