Advanced Energy Finance Analytics Course

Why select this training course?

Energy is a fundamental component of contemporary economic structures, affecting many financial performance aspects. The energy industry and the rest of the global economy are reevaluating their risk profiles. There are new funding risks associated with energy investments, such as whether or not project revenues and profits can sustain additional expenditures on company balance sheets. Therefore, it is essential to thoroughly investigate energy market challenges from a financial standpoint. Indeed, the strategic significance of energy and climate change confers a particular relevance to financial concerns for academics and policymakers, which unavoidably leads to a more excellent call to study energy finance separately.

How do you become an advanced energy finance analyst?

For one to become a qualified advanced energy finance analyst, there are some qualifications that one needs to obtain. Some of them are strong communication skills in both written and spoken language because, in this field, one needs to stay active in passing communication from making communication to the board members, supervisors, the chairperson, fellow workmates, and junior staff members. People also need skills and the ability to correctly determine task prioritization and handle the tasks swiftly and be familiar with the company or organization’s strategy for controlling or managing issues that may be raised.

What do advanced energy finance analysts do?

Energy finance analysts use energy market knowledge and skills to forecast energy prices correctly, determine the correct energy investments and ensure they buy the energy at the best market prices. In addition, the forecasts can be utilized to extrapolate forward costs beyond the liquidity levels, estimate and calculate volatility in energy price, manage and optimize the organization’s risks exposure, and develop a process of correct assets valuation. The knowledge obtained from the forecast can also be used to understand the optimal rate at which to exit the energy market trades, improve the decision-making process, conduct on-time extraction of energy products, and determine the proper storage facilities.

The Advanced Energy Finance Analytic Training Course by Rcademy is designed to improve the capabilities of the participants with a great foundation in understanding energy finance and how to handle different risk environment that results from changing energy prices. The course will focus on the critical aspects of energy, such as energy asset valuation, pricing in the energy field, and managing risks in the energy industry. Some highlights will include introducing the energy market, forecasting energy prices, and implementing the theoretical frameworks for energy assets. After completing this Rcademy training course, participants will gain practical skills in energy markets and understand how various energy situations influence organizational decision-making. They will also learn to determine correct energy pricing and improve their asset valuation process.

Who should attend?

The Advanced Energy Finance Analytic Training Course by Rcademy is suitable for the following individuals:

• Regulatory officials from the government, specifically those responsible for the energy sector
• Bankers and commercial investment dealing with commodities
• Finance quantitative analysts
• Analysts/researchers
• Energy traders involved with commodities products
• Consultant in the commodity area
• Risk managers involved with commodities
• Financial services organizations
• Risk managers
• Financial analysts

What are the course objectives?

The Advanced Energy Finance Analytic Training Course by Rcademy aims to ensure that the participants learn the fundamentals of energy financials, grasp the energy pricing processes, and deeply understand the oil and gas industry and corporate energy management. It will enable the participants to:

• Understand the principles of risk management
• Develop financial risk management strategies
• Understand swing options
• Explore the principles of strategic energy pricing
• Understand the differences between exchange and markets
• Manage and optimize the organization’s energy risk exposure
• Develop option valuation techniques
• Use financial models to forecast energy prices
• Understand centralized and stand-alone financing
• Correctly estimate and determine market volatility
• Understand the utilization of value-at-risk methods
• Understand exotic structures unique to the energy market
• Valuate options in the energy industry trading

How will this course be presented?

Participants in the Rcademy training course will be provided with various resources to help them apply the theoretical framework lessons they learn to real-world problems, including instances of problem-solving strategies, lecture notes on necessary supplementary analytics, and short videos. Also, there will be case studies, detailed presentations of the relevant empirical regularities, interactive activities, group discussions, and presentations, and many more.

What are the topics covered?

Module 1: Overview of Risk Management

• Commodity swap
• Future price and forecast prices
• Risk management from a corporate perspective
• Introduction to Futures and forward trading
  – Creating a meaningful diagram
  – The basics
  – Pricing by arbitrage

Module 2:  The Modern Situation of the Equity and Commodity Industry

• Understanding different contracts in energy trading
• Seasonal influence on the international stage
• Quantifying future inflation rates
• Impact of geopolitical events on implied volatilities in the energy market
• Uncertainty in equity and commodity markets
• Dynamics of the oil industry

Module 3: Estimating the Price Process in Energy Markets

• History of energy trading and how to determine prices
• Jump-diffusion process analysis
• How to correctly understand volatility in the market
• Capturing upstream opportunities
• Extrapolating energy finances
• Market prices of options
• The mean-reverting process
• Credit value-at-risk and the energy market
• Implied volumes
• Valuation of the tangible long-dated assets
• Characterization of the volatility
• Market liquidity

Module 4: Cost/Pricing Suggestion

• Black-Scholes formula
• Binomial module and valuation
• Real option in energy markets
• Delta and Gramma as an option
• Opportunity in the energy market
• Valuation of extraction options

Module 5: Understanding Various Products in the Energy Market

• The role of valuation, correct calibration, profitable hedging
• Categorizing derivative products
  – Collars option
  – Average option
  – Swing option
  – Spread option
  – The link between commodity bonds
• Non-commercial structured products
• Major and minor fields of energy markets
• Calibration example: use of the vanilla option
• Structuring and valuing average option
• Structuring and valuing option collars

Module 6: Basic Techniques and Options of Valuation

• Risk value in industry entry
• Power plants options
• Energy treading
• Multiple-earning valuation
• Midstream energy finances
• ROI method

Module 7: The Markets

• Project Finance
• Introduction to electricity markets
• Tenor, debts, and margins
• Leverage and how to use it
• Renewable energy
• Oil and gas

Module 8: Energy Finance

• Advanced corporate finance
• Energy derivative
• Fixed-income security analysis
• Techniques for project finance
• Financial securities and innovation
• Mergers, joint ventures, and acquisitions

Module 9: Energy Finance Management and Business

• Strategic control of energy finances
• Treatment of sunk capital
• Petroleum fiscal regimes
• Valuation of mineral projects
• Analysis of Risk and Uncertainty
• Optimization of gearing
• Cash flow modeling
• Resources base and asset life
• Pre-initial public offering
• Funding options
• Managing energy financial projects