February 21, 2013
In Partnership with PGS Energy
Valuation of energy assets and structured energy contracts can be complex and challenging because they often have operational constraints and flexibilities that impact the cash flows produced by the asset or obligation. Energy asset valuation requires not only in-depth familiarity with energy industry operations, infrastructure, and markets, but also a sophisticated knowledge of finance techniques and the decision criteria of regulated and deregulated markets.
In this seminar we provide an in-depth overview of the economic principles of valuing physical and contractual assets in the electric, natural gas, and petroleum industries. Starting with a detailed knowledge of the business strategy, market structure and operational issues, we build the strategic business case for capital investment and project risk management.
We particularly focus on the financial tools used to evaluate the complex risks, operational flexibility, and options that are often associated with energy assets and structured products. Participants focus on the strengths of various financial modeling techniques, forecasting, and market analysis with a special focus on the principles of real options using traditional financial engineering methods.