Lachlan Hughson

Building Better Energy Companies Through Enhancing the Finance Function With a Probabilistic Approach

This course focuses on transforming the finance function within energy companies by adopting a probabilistic approach to financial modeling. It highlights the limitations of traditional deterministic methods and emphasizes how probabilistic models can enhance risk analysis, decision-making, and value creation in the energy sector. By integrating real-world data and using advanced techniques like Monte Carlo simulations, finance professionals can gain deeper insights into volatility and uncertainty. The course covers practical applications in valuation, mergers and acquisitions, capital raising, and risk analysis. It is designed for various skill levels and aims to make this approach commercially viable from day one.

Who Should Take This Course
• Finance professionals and analysts
• Investors and corporate executives
• Operational engineers and scientists
• Industry decision makers and board members

What You Will Learn
• Applying Monte Carlo simulations
• Enhancing risk and sensitivity analysis
• Incorporating real-world data in finance models
• Probabilistic vs deterministic financial modeling

Why This Course Works
• Support industry transition to net-zero
• Meet demands for low-cost, reliable energy
• Improve decision quality under uncertainty
• Increase financial insight and value creation

1.00 – Introduction (6 min.) 
1.01 – Setting The Scene (17 min.)
1.05 – Course Roadmap (10 min.)

2.01 – Finance Function Overview (9 min.)
2.02 – Finance Function Models and Roles (12 min.)
2.04 – Financial Model Outputs (15 min.)
2.07 – Building Better Financial Models (5 min.) 

3.01 – Benefits of a Probabilistic Approach (11 min.)
3.03 – Using @RISK from Lumivero (12 min.)
3.04 – Probabilistic Model Inputs (17 min.)

4.01 – Introduction to E&P Models (21 min.)
4.05 – Discount Rates (19 min.)
4.08 – Industry Probabilistic Inputs (6 min.) 

5.01 – Introduction to Transaction Outputs (10 min.)
5.03 – M&A/A&D Analysis (27 min.) 

6.01 – Finance function overview (26 min.) 

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