Oil and Gas Modeling - Resources?
I have an interview coming up with a BB in their oil and gas group. I have gone through all the oil and gas modeling 101 guides and sample videos. I think I have a good basic understanding of the all different things that flow into an O&G valuation.
I noticed that BIWS and Wall Street Prep are the only two offering videos/guides in this area, but the prices seemed pretty steep. For those who have gone through the BIWS/Wall Street Prep package for oil and gas:
1) Is it worth it? ($250 for BIWS and $500 for Wall Street Prep)
2) Which one is better?
3) Are there any other resources besides these?
I know this topic has been picked up before, but I just wanted to expand more on it; particularly question 3)
Any feedback will be greatly appreciated!
Thanks guys!
I used BIWS, an am currently working in ER as a result. Can't compare to WSP though.
I found the program was thorough and well explained - though certain things more specific to ER would have been useful (more discussion surrounding technologies, industry jargon, etc.) in my case, specifically. I imagine it's a lot more useful for banking, where your role is less analytical and industry knowledge based, and more modelling/monkeying. Overall, I can recommend it.
Thanks for your feedback..sent you a pm
anyone else wants to chime in? There is so little resources on oil and gas modeling...
Here is an IRS training manual for the Oil & Gas industry that has some very useful knowledge:
http://www.irs.gov/pub/irs-mssp/oilgas.pdf
The stated goal of the guide is to "enable one to become familiar with the basic operations and common terminologyof the oil and gas industry, including brief references to royalty owners." It also has a pretty good definition's section. Hope this helps.
What did you end up using, BIWS or WSP? What is your feedback?
Breaking Into Wall Street: Oil & Gas Modeling (Originally Posted: 03/01/2012)
Does anyone have any feedback on the O&G program from BIWS?
Appreciate it.
Do not buy their introductory modeling packet if you are focused on the O&G industry; they use the same case study to illustrate the basics before moving on to O&G specifics. That being said, I think the content is pretty good, but the examples can sometimes be riddled with errors. Still a worthwhile buy if you are going into the industry because the formatting is spot on.
Opps, I realize I was describing Wall Street Prep...My apologies. Relevant info either way though.
Thanks Houston. I'm going through BIWS excel and modeling package and like it. Canada is alot of O&G so I want to prepare ahead of time.
I'd get it but it's too expensive. Wasn't it just $97 in December? Why did they hike prices?
The O&G package is great. It goes through multiple valuation models and gives a lot of background on why things work the way they do. If you're not already comfortable with general modeling then you may not like it as it doesn't really go into the basics of building a model, but if you need that their advanced modeling course is good.
wow, that's a huge increase in price Jeff.
^ Thanks Rupert.
yeah, its ridiculous. I was going to buy it but now that they jacked the prices up I aint anymore.
I think the discount was for holiday special (slaps face for not buying it)
,
The BIWS one is good for the basic concepts but use XOM-XTO as an example so you have some simplifications. Ie. instead of type curves you could basically assume a flat decline in reserves since no one property really impacts Exxon a lot.
Agreed with kalga. I was pretty disappointed with the BIWS oil and gas package. I was hoping for something a little more substantial. I also caught some serious technical mistakes (for example converting oil reserves and production to mcfe basis in his comps analysis).
Wall Street Prep course is excellent but expensive. The intro book does a good job covering all of the O&G industry basics, including O&G accounting. It goes through an O&G company’s financials to explain all the O&G specific disclosures and footnotes. The modeling is fairly straight-forward - if you haven't done regular modeling, a lot of the LBO, M&A, and DCF concepts will be new are are covered thoroughly. If not, you can blow by it quickly - O&G modeling is very similar to regular modeling beyond the NAV and specific operating drivers which are covered in the intro book.
I have an interview coming up with a BB in Calgary in their oil and gas group. I have gone through all the oil and gas modeling 101 guides and sample videos. I think I have a good basic understanding of all different things that flow into valuing an O&G firm. Do you guys still recommend getting the full BIWS package for oil and gas? It seems a little bit pricey...
Any feedback will be greatly appreciated!
i put together a side by side comparison of the best financial modeling programs right here: http://www.wallstreetoasis.com/financial-modeling-training hope that helps!
Is the BIWS Oil/Gas modeling course worth it? (Originally Posted: 07/17/2013)
I've got: -Deutsche Bank's O&G industry guide -Oil 101, Morgan Downey -Something by TPH
Anything else i should check out?
Thank you
Yes
Modeling Case Study (oil & gas) (Originally Posted: 11/12/2013)
I know this is probably a pretty difficult question to speculate on but I'll post anyways:
as part of a 2nd round interview, I've been told I'll have about 3 hours to value a company after they've made an acquisition....basically they're going to send me a press release about the acquisition, company financials, ect. Can anybody comment on how I should prepare? Oh and I'm guessing it'll be an oil and gas company probably acquiring additional E&P assets...thanks in advance
Learn how to do Net Asset Value analysis. You typically can't use a DCF for O&G because it will often yield artificially negative cash flows. This is due to the high capital requirements of the industry. NAV is pretty straightforward though, shouldn't take to long to learn once you know the intuition and assumptions.
NAV valuation is straightforward how? Also, NAV is a form of DCF dipshit.
O&G or Mining Modeling for SA Interviews (Originally Posted: 04/12/2011)
I'm just wondering how much are you expected to know if you want to work for Mining group or O&G group in which modeling is so specialized? Other than knowing some multiples, are you expected to know how to walk through doing comps or precedents when doing valuations?
Does anyone know how to give a breakdown? I know general DCF its just PV of CF and PV of TV.. but what's the general breakdown of doing it for O&G or Mining...
Essentially, for SA, you're pretty much taught this, isn't it? so how are you suppose to learn on your own other than paying and doing some modeling courses? i know they'll test basic techicals, but I'm just really curious as to whether they'll test industry specifics
Thanks
Also interested.
PV10...
what
Zero. Unless for some reason you have something on your resume that would make it seem like you would know O&G specific modeling.
This. You will definitely not be asked unless you bring something up or have something on your resume. Assuming you do not do/have either of those, the extent of O&G questions are, why O&G and/or what are some common multiples (very rare). EV/EBITDA and P/E are commonly used multiples just as in any industry. More industry specific multiples are (these are for E&P companies):
EV/EBITDAX EV/Production EV/Proved Reserves Reserves/Production
PV10 is essentially discounting future revenues from production of proved reserves by 10%. You can put EV over that for a multiple as well.
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