UPSTREAM ACCOUNTING AN IN-DEPTH INTRODUCTION

COURSE

UPSTREAM ACCOUNTING AN IN-DEPTH INTRODUCTION April 14-15, 2014 Omni William Penn Hotel Pittsburgh, PA

EUCI is authorized by IACET to offer 1.0 CEUs for the course.

EUCI is authorized by CPE to offer 12.0 credits for the course.

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UPSTREAM ACCOUNTING AN IN DEPTH INTRODUCTION April 14-15, 2014 Pittsburgh, PA

OVERVIEW Exploration and production companies deal with a unique set of issues in the accounting, financial reporting and disclosure of their oil and gas producing activities. In fact, two distinct comprehensive U.S. GAAP standards on accounting for oil and gas producing activities have been developed, and there are unique accounting rules in a number of areas including joint interest operations, asset retirement obligations and oil and gas reserve disclosures. Join us as we discuss the fundamentals of these rules in a way that non-accountants can understand them. We will discuss each of the concepts and see how they apply in practice. We will also compare and contrast international accounting standards to U.S. GAAP standards for exploration and production companies. This course will provide you a greater ability to understand the financial statements of exploration and production companies as well as understand the underlying issues that accounting and finance groups face when preparing financial statements and addressing commodity and foreign exchange risk exposure. We will apply this knowledge on the second day, providing you the opportunity to review actual financial statements and exercise the accounting principles discussed throughout the course.

WHO SHOULD ATTEND • • • • • • • • • •

Private equity groups with portfolio companies in the upstream space or who either have or are contemplating investment in the space Corporate finance, investment bankers or transaction services providers who would like to learn more about the upstream industry Accounting/finance employees of upstream companies, particularly those new to the industry or who want a refresher Any employee of midstream, downstream, oilfield services, or power and utility companies who would like to gain a better understanding of how upstream companies function Non-accountants (e.g., attorneys, geologists, investor and public relations, HR, marketing, landmen, etc.) who would like more in-depth information on the issues that their accounting and finance functions face Non-working interest owners Royalty/overriding royalty owners All consultants to the energy industry Native American tribes that have interests in oil and gas producing activities Oil and gas investors

LEARNING OUTCOMES • • • • •

Discuss a general overview of oil and gas accounting Explain accounting for acquisition costs, exploration costs, development costs, production costs, depreciation, depletion and amortization (DD&A) and impairment under both the full cost and successful efforts method of accounting for oil and gas producing activities Discuss other accounting issues unique to the oil and gas industry Discuss oil and gas producing activities disclosures and the standardized measure of oil and gas reserves Apply general principles of risk management to upstream operations and finance

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UPSTREAM ACCOUNTING AN IN DEPTH INTRODUCTION April 14-15, 2014 Pittsburgh, PA

AGENDA Monday, April 14, 2014

CPE

8:00 – 8:30 a.m.

Registration and Continental Breakfast

8:30 a.m. – 4:00 p.m.

Course Timing

12:00 – 1:00 p.m.

Group Luncheon



Overview of accounting for oil and gas producing activities • Historical overview of the standards • Successful efforts

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 website: www. learningmarket.org.





•

Full cost



Under both successful efforts and full cost, accounting for: • Acquisition costs • Exploration costs • Development costs • Production costs • Depreciation, depletion and amortization (DD&A) • Impairment



Other unique aspects of accounting for oil and gas producing activities • Joint operations • Marketing and sales • Imbalances • Income taxes •



Asset retirement obligations

Oil and gas disclosures • Oil and gas producing activities disclosures • Standardized measure of oil and gas reserves

Tuesday, April 15, 2014 8:00 – 8:30 a.m.

Continental Breakfast

CPE CREDITS Upon successful completion of this event, program participants interested in receiving CPE credits will receive a certificate of completion. CPE – 12.0 There is no prerequisite for this course. Program Level: Intermediate Delivery Method: GroupLive Advanced Preparation: None

8:30 a.m. – 12:00 p.m. Course Timing

Risk management activities of exploration and production companies • How do exploration and production companies typically mitigate commodity pricing risk exposure? •









Accounting treatment for these methods

Practical application: Let’s put it all together by reviewing public financial statements IFRS – what are the similarities and differences when reporting for oil and gas producing activities under U.S. GAAP versus IFRS What’s in the future? • Leasing standard •

Revenue standard

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UPSTREAM ACCOUNTING AN IN DEPTH INTRODUCTION April 14-15, 2014 Pittsburgh, PA

INSTRUCTOR Eric Dulany / National Energy Practice Leader / BKD Eric is the leader of BKD’s national energy practice and is chairman of the energy and mining group for Praxity, AISBL, a global alliance of independent firms. Prior to joining BKD, Eric worked 12 years for PricewaterhouseCoopers in both the Houston and London offices. Eric has spent nearly 15 years in public accounting serving energy clients throughout the US, Europe, Africa and Asia. His clients have spanned the energy industry segments, from exploration and production to midstream to downstream to oilfield services, and he has worked with many different types of energy clients – from small independent producers to large integrated oil and gas companies. Eric has substantial experience with SEC and IFRS reporting, regulatory reporting and compliance. Eric also completed a two year tour in London where he served a large IOC, a large oilfield services client and an AIM listed oil and gas client. Operations for which he was responsible while in London included the North Sea, Europe, Africa and Kazakhstan. Eric is a certified public accountant and a member of the American Institute of Certified Public Accountants and the Texas Society of Certified Public Accountants. Eric has been an instructor at the Advanced International Program in Oil and Gas Financial Management at the University of Texas at Dallas. He is a contributing author and instructor to many oil and gas and audit methodology courses as well as many industry thought leadership articles.

INSTRUCTIONAL METHODS PowerPoint presentations and classroom exercises.

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.

CREDITS EUCI has been approved as an Authorized Provider by the International Association for Continuing Education and Training (IACET), 1760 Old Meadow Road, Suite 500, McLean, VA 22102. In obtaining this approval, EUCI has demonstrated that it complies with the ANSI/IACET Standards, which are widely recognized as standards of good practice internationally. As a result of its Authorized Provider membership status, EUCI is authorized to offer IACET CEUs for its programs that qualify under the ANSI/IACET Standards. EUCI is authorized by IACET to offer 1.0 CEUs for the course.

EVENT LOCATION A room block has been reserved at the Omni William Penn Hotel, 530 William Penn Pl, Pittsburgh, PA 15219, for the nights of April 13-14, 2014. Room rates are $169 for single & double occupancy, plus applicable tax. Call (412) 281-7100 for reservations and mention the EUCI course to get the group rate. The cutoff date to receive the group rate is March 14, 2014, but as there are a limited number of rooms available at this rate, the room block may close sooner. Please make your reservations early.

PROCEEDINGS The proceedings of the course will be published, and one copy will be distributed to each registrant at the course.

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EVENT LOCATION A room block has been reserved at the Omni William Penn Hotel, 530 William Penn Pl, Pittsburgh, PA 15219, for the nights of April 13-14, 2014. Room rates are $169 for single & double occupancy, plus applicable tax. Call (412) 281-7100 for reservations and mention the EUCI course to get the group rate. The cutoff date to receive the group rate is March 14, 2014, but as there are a limited number of rooms available at this rate, the room block may close sooner. Please make your reservations early.

PLEASE REGISTER THE FOLLOWING UPSTREAM ACCOUNTING AN IN DEPTH INTRODUCTION APRIL 14-15, 2014: US $1395 EARLY BIRD ON OR BEFORE APRIL 4, 2014: US $1195

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All cancellations received on or before March 14, 2014, will be subject to a US $195 processing fee. Written cancellations received after this date will create a credit of the tuition (less processing fee) good toward any other EUCI event or publication. This credit will be good for six months. In case of event cancellation, EUCI’s liability is limited to refund of the event registration fee only. For more information contact our our offices offices at at 303-770-8800. (201) 871-0474. regarding administrative policies, such as complaints and refunds, please contact EUCI reserves the right to alter this program without prior notice.

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