Upstream Accounting

May 20, 2019 | Denver, CO ::

0519-upstream-accounting

Join our expert instructor, Alfonso Colombano, for a comprehensive fundamentals course on upstream accounting, financial reporting, and disclosure of oil & gas producing activities. This course is perfect for professionals in exploration and production companies who require an understanding of the issues faced in oil & gas accounting and best practices used by oil & gas accounting professionals. 

Topics covered in this course will range from the oil & gas value chain, mineral rights, lease acquisition, and joint ventures to exploration, development and reserves. Additional topics to be covered include the upstream business model, price volatility, marketing, depreciation, depletion, and amortization. Attendees will be equipped with a greater understanding of the financial statements used by exploration and production companies and will gain a comprehensive understanding of the underlying issues faced by accounting and finance professionals.

Learning Outcomes

Participants will::

• Be able to identify how the upstream adds value and fits into the Oil & Gas Value Chain
• Review basic Joint Venture Accounting principles, implications and differences between U.S. and International E&P operations
• Discuss the accounting intricacies of upstream accounting and how to account for the diverse types of costs under both Successful Efforts and Full Cost Accounting Methods
• Assess how the results of upstream operations are reported in the financial statements and how companies should be valued
• Identify the importance of hydrocarbons reserves, how are they categorized and why they are important for an E&P company
• Review the similarities and differences in Revenue Accounting between U.S. and International, particularly with the administrative complexities that come with private mineral rights ownership

Credits

EUCI is accredited by the International Accreditors for Continuing Education and Training (IACET) and offers IACET CEUs for its learning events that comply with the ANSI/IACET Continuing Education and Training Standard. IACET is recognized internationally as a standard development organization and accrediting body that promotes quality of continuing education and training.

EUCI is authorized by IACET to offer 1.2 CEUs for this course and 0.4 CEUs for the workshop.

Upon successful completion of this event, program participants interested in receiving CPE credits will receive a certificate of completion.

Course CPE Credits: 12.0
There is no prerequisite for this Course.
Program field of study: Specialized Knowledge
Program Level: Basic
Delivery Methood: Group-Live
Advanced Preperation: None

EUCI is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its web site: www.nasbaregistry.org

Instructional Methods:

PowerPoint, Lecture, Discussion, Q&A

Requirements for Successful Completion of Program:

Participants must sign in/out each day and be in attendance for the entirety of the course to be eligible for continuing education credit.

Monday, May 20, 2019

8:00 – 8:30 a.m. :: Registration and Continental Breakfast

8:30 a.m. – 5:00 p.m. :: Course Timing

11:30 a.m. – 12:30 p.m. :: Group Luncheon

Morning Session

Introduction the Oil & Gas Value Chain

• Upstream
• Midstream
• Downstream

Minerals Rights

• US
• International
• Complexity of Private Ownership

Types of Companies

• Independent
  • Sample Financial Statements

• Integrated
  • Sample Financial Statements

Accounting Standards

• Successful Efforts
• Full Cost
• Examples of Companies Using Either

Lease Acquisition

• Accounting
• Types of Leases

Joint Venture

• Joint Operating Agreement
• Accounting for Costs
• Impacts to Financial Statements

Afternoon Session

Exploration

• Types of Costs
• Successful Efforts
• Full Cost

Development

• Types of Costs
• Successful Efforts

Drilling

• Types of Costs
• Intangible Drilling Costs
  • U.S. Income Tax Deductibility

Production

• Types of Costs

Hydrocarbon Reserves

• Definitions
• How Reserves are Calculated
• SEC Requirements
• Types

Upstream Business Model and Price Volatility Implications

• Production
• Reserves

Revenue Accounting

• Production Sharing Agreements
• US Revenue Accounting

Tuesday, May 21, 2019

8:00 – 8:30 a.m. :: Continental Breakfast

8:30 a.m. – 12:30 p.m. :: Course Timing

Morning Session

Oil & Gas Marketing

• U.S. Natural Gas Marketing
• U.S. Crude Marketing
• International LNG Marketing
• International Crude Marketing

Depreciation, Depletion and Amortization DD&A

• Depreciation
• Depletion
• Amortization
• Units of Production (UOP) Depreciation
  • Proved Reserves
  • Proved Developed Reserves
• Area of Calculation
  • Well
  • Field
  • Subtopic
• Differences Between Conventional and Unconventional Wells and DD&A Rates

Conclusion

• Recent Price Developments
• Supply
• Demand

Questions and Answers

Oil & Gas 2019 Tax Workshop

Tuesday, May 21, 2019

Overview

Learn what you need to know about oil & gas tax accounting in this half-day workshop instructed by accounting expert, Alfonso Colombano. Attendees of this workshop will learn about tax issues faced at all stages of oil & gas production: upstream, midstream, and downstream. Topics such as excise and sales tax, duties, property taxes, and inventory, will all be discussed. Complex tax issues around master limited partnerships, depletion, depreciation, and other crucial topics in oil & gas tax accounting will be explained and simplified so that attendees can immediately begin applying what they have learned.

Workshop Agenda

12:30 – 1:00 p.m. :: Registration

1:00  – 5:00 p.m. :: Course Timing

Income Tax

• Upstream
  • Royalty Trusts
• Downstream
  • Inventory Impacts
  • Manufacturers Credits
• Midstream
  • MLP

International Operations & Tax Implications

• Indirect Taxes
  • Excise Taxes
  • Sales Taxes
• Other Taxes
  • Duties
  • Property Taxes/Inventory

Alfonso Colombano

Alfonso Colombano is the author of the bestseller series of books titled Oil & Gas Company Analysis, which have been used as a teaching tool in the oil & gas industry worldwide. Alfonso has worked for ConocoPhillips, Phillips 66 and Chevron in analytical, commercial & financial roles. Alfonso is a graduate of the University of Houston where he was active in the Energy Association. Alfonso’s expertise encompasses all sectors of the oil & gas industry including upstream, midstream and downstream, which led him to create, write and publish three books on the topic. Mr. Colombano is an avid reader of Forms 10-K and 20-F, financial statements and other external company publications. Alfonso is currently an SAP Financials Consultant working for a large Oil & Gas Company in Houston. Alfonso has published four books so far:

• Oil & Gas Company Analysis: Upstream, Midstream & Downstream
• Oil & Gas Company Analysis: Petroleum Refining & Marketing
• Análisis de Empresas de Petróleo y Gas: Upstream, Midstream y Downstream
• Careers in the Oil & Gas Industry: A Guidebook of Practical Advice

Mr. Colombano is currently working with a co-author on an upcoming book on International Oil & Gas Accounting, to be published later this year.

Alfonso’s expertise encompasses the financial & operational analysis of oil & gas companies, having developed several analytical models for M&A activity and commercial analysis.  Alfonso is a well-seasoned public speaker and has been featured at the University of Houston and the Global Energy Leaders Podcast. Alfonso is co-host with Ryan Ray on theEnergy Market Recap Podcast. He enjoys reading books about the oil & gas industry and playing golf in his free time.

Additional Background:

• Deep  understanding of the upstream, midstream and downstream businesses, having worked as a financial analyst for a Commercial G&P group in the E&P business as well as a financial analyst for the DCP Midstream JV
• Strong understanding and application of oil & products value chain, from gathering, terminals, refining and marketing of oil and products from an operations and commercial perspective.
• Work experience at gas plants and fractionators (exposure to operations, project management & construction). Analysis of Loss Profit Opportunities (LPO’s) as well as gas plant margin analysis (inclusive of high H2S content gas)
• Commercial gas contract reviews (DCP and Enterprise), reviewed several gas gathering & processing (POP, Fee-based and Keep Whole)

REGISTER NOW FOR THIS EVENT:

Oil & Gas 2019 Tax Workshop

May 21, 2019 | Denver,CO

Buy 4 in-person seats and only pay for 3! For this event every fourth in-person attendee is free!