International Oil Company Financial Management in Nontechical Language

by Bush, James; Johnston, Daniel

• ISBN13: 9780878145973
• ISBN10: 0878145974
• Format: Paperback
• Copyright: 1999-09-01
• Publisher: Pennwell Corp

Summary

A practical guide to all facets of modern financial management & strategic planning in today's oil & gas companies.

Table of Contents

Dedication	v
Figures	xi
Illustrations	xiii
Tables	xiii
Acknowledgment	xv
Introduction	xvi
Financial Management for the Petroleum Industry	1	(18)
The Importance of Understanding International Finance
Petroleum Industry Pioneers in Globalization Concepts
Financial Management Objectives
Interrelationships of Oil Prices, Interest Rates, Capital Investments, and Debt
Managing Risks in the Petroleum Industry
Summary
Oil And Gas Financial And Accounting Systems	19	(20)
Users of Financial Statements and Their Needs
Recognition and Measurement Concepts
Cost Classification
Cash Flows
Earnings vs. Cash Flows
Summary
Integrated Management Systems	39	(24)
Processes of the Integrated Management System
Strategic Planning
Scenario Planning
Long-Range Financial Planning
Forecasting Financial Position and Requirements
Percentage-of-Sales Method
Other Approaches to Forecasting
Annual Performance Plans
Budget Revisions
Internal Performance Reporting
Summary
Competitive Comparison	63	(16)
Finding Costs
Benchmarking
Key Financial Ratios
Cost Management in the Oil and Gas Industry	79	(26)
Total Cost Management
Cost Behavior
Internal Reporting and Control Systems
Management Control Process and Transfer Pricing
International Transfer Pricing
Joint Operating Interests
Assignment of Costs to Responsibility Centers
How a Transfer Price Can Affect Profit Maximization
Motivation, Performance and Rewards
Summary
Capital Budgeting and Investment Theory	105	(40)
Present Value Theory
Risk Analysis
Expected Value Theory
Decision Tree Analysis
Gambler's Ruin Theory
Common Pitfalls in Risk Analysis
Utility Theory
Monte Carlo Simulation
Presentation to Management
Petroleum Fiscal Systems	145	(34)
Negotiations and Fiscal Terms
Families of Systems
Concessionary Systems
Production Sharing Contracts
Basic Elements
Working Capital Management	179	(28)
How Much Working Capital is Required?
Working Capital Management
Cash Management
Accounts Receivables
Management of Accounts Payables and Accruals
Management of Inventories
Technologies and Techniques Affecting Working Capital
Summary
Capital Structure and Cost of Capital	207	(36)
Capital Structure Decisions Checklist
Company's Growth, Development and Financial Requirements
Return on Equity as Related to Growth in Earnings per Share (EPS)
Business Risk
Business Forms and Financing
Financing Well Drilling and Development through Assignment of Working Interest
Joint Operating Agreement
International Oil Business
Capital Markets
Long-Term Financing Decision of an International Company
Cost of Capital
Capital Asset Pricing Model
The Importance of the Capital Structure and Financing
Financial Reporting And Investor/Stockholder Relations	243	(20)
Development of SFAS 69
Required Supplement Disclosures
Using the Information from SFAS 69
Investor/Stockholder Relations
Econometrics	263	(8)
Fundamentals of Supply and Demand
OPEC Capacity Utilization
Appendices	271	(14)
Appendix 1: Abbreviations and Acronyms
Appendix 2: Petroleum Industry Vital Statistics
Appendix 3: Demand/Real Price Trends from 1950
Appendix 4: Average Wellhead Oil and Gas Prices--Total U.S.
Appendix 5: Conversion Factors
Appendix 6: Present Value of One-Time Payment
Appendix 7: Present Value of an Annuity
Appendix 8: Definitions and Formulas
Appendix 9: Natural Gas Products
Appendix 10: Drilling Economics Algorithm
Glossary	285	(26)
References	311	(2)
Index	313