Akili’s Upstream Oil & Gas Financial Planning Accelerator on Anaplan

Quickly deploy full financial planning driven by the considerations that are key to the Upstream Oil and Gas industry. This dynamic solution enables on-the-fly integrated what-if analysis – quickly update key drivers and see how that will impact the full financial picture, from the bottom line to cash flow.

• Dynamically modify expected starts and drilling dates by well, region, rig, or other factors in order to impact overall revenue, drilling cost, and cash flow forecast

Key Features:

Akili (pronounced (uh • kē’ • lē) meaning “knowledge” in Swahili) is a niche information technology consulting firm focused on Industry solutions for Fortune 1000 companies in Oil and Gas, Telecommunications, Finance, Hi-Tech and Retail. Our Functional solution expertise include Enterprise Performance Management (EPM), Business Analytics (BI, EIM, DW), ERP (Including PRA, JVA, Asset Management), HANA, and Cloud Services (Finance, Operations, Sales).

About Akili:

• Volume and Pricing Adjustments and Risking• Quick and easy what-if analysis• Real-time debt projections based on forecasted Cash Flow• Quick deployment with minimal configuration

Locations Dallas972.210.3200

Houston713.840.6016

Denver303.357.2397 www.akili.com

Revenue Forecasting & Pricing Dashboard Examples

This document was created to provide you with an overview of the Lists, Modules, and Dashboards created as a part of the Akili Upstream Oil & Gas Financial Planning Accelerator on Anaplan. In addition, it also provides general instructions on how to best utilize the model with an understanding of the way it was designed, as well as provide an awareness of how it can be expanded upon and further developed, as needed.

As with most application accelerators, the intention of this model is to provide a quick launch point that your organization can leverage to rapidly deploy a solution that meets your needs. Due to the simple fact that every organization approaches challenges and needs differently, there is never a “One Size Fits All” solution. However, our hope is that this Accelerator allows you to quickly leverage the power and capabilities of Anaplan to tackle your Financial Planning challenges.

If you would like additional instruction or guidance on how to maximize the effectiveness of this Accelerator, please contact us 972.210.3200.

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Purpose & Overview

In order to better understand how to take advantage of the power of this accelerator and quickly complete the setup necessary to configure it for your organization, we encourage you to take a moment and familiarize yourself with the various Lists, Modules, and Dashboards used within the Model. If you have questions on lists, how to set them up, or how to use them, please check out the helpful Anapedia links below:

https://community.anaplan.com/anapedia/model-building/lists-and-roll-upshttps://community.anaplan.com/anapedia/model-building/moduleshttps://community.anaplan.com/anapedia/model-building/dashboards

Lists…

WellRegion – Regions where wells are located. Well L1 – Well level groupings. Well L2 – Wells at the well level along with specific information tied to each well.

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Accelerator Components Overview

Lists Continued…

Dimension DriversEnergy Type – Energy sources produced by wells.Company – Lower level company entities that roll into total companyCurrency – Different currency values.Data Source – Differentiates between Excalibur GL and Excal Activity loadsLOE Accounts – Supporting expense accounts used in forecasting development.Reserve Category – Reserve category types for wells.Rigs - List of rigs servicing wells.Scenario – Best, Normal, Worst case scenarios for sensitivity analysis.TimeShift – Option to view original volume or time shifted volume.Tranches – Tranche groupings for interest expense.

G&AG&A L1 – Top level parent for the G&A accounts.G&A L2 – Sublevel accounts items that compose the G&A.G&A L3 – Well level accounts that roll into sublevel G&A account items.

D&DDepl&Depr L1 – Top level parent for the Depletion & Depreciation account.Depl&Depr L2 – Sublevel accounts that separate Depletion items from Depreciation items.

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Accelerator Components Overview – cont.

Modules…

Financial StatementsBalance Sheet – Balance sheet template.Cash Flow – Cash flow line items calculate total cash flow.Income Statement – Line items calculate net income across different dimensions.

FS DriversInterest Expense – Interest Expense on the Income Statement is built here. To begin the Fiscal Year starting balance(s) are entered in, and the module automatically rolls the balances forward from there. The Ending Cash Balance is used as a reference only, but from it you can enter any increase or decrease in a particular tranche. D&D – The D&D module provides for the input/import of all depreciation & depletion data for the actual and forecast. The D&D L2 list provides the rows for this module and the resulting data is fed into the Income Statement module.G&A – The G&A module allows you to input/import all G&A data for the actual and forecast. The G&A L3 list provides the rows for this module and the resulting data is fed into the Income Statement module. Lease Operating Expense – The LOE module allows you to input the supporting operating costs for the actual and forecast versions. The LOE Account list provides the rows and the resulting data is fed into the Income Statement module.

Revenue PricingSales Price – The Oil Nymex, Henry Hub (Gas) & Liquid pricing input.Differential Price – Pricing differential input by region.Adjusted Price – Final pricing of sales price with differential price applied. Volume (Original) – Original volume input for all energy types by well level.Volume Risk Factor – Volume risk factors for wells according to reserve category.Volume (Time Shift) – New volume forecast after time shift has been applied.Adjusted Volume – Final volume with risk factor applied.Revenue – Region – Revenue (Price x Volume) roll up to region level.Revenue - Well L1 (All) – Revenue (Price x Volume) roll up to well grouping level.Revenue - Well L2 (All) – Well level revenue (Price x Volume).

CapExD&C CapEx (Original) – Original CapEx input by well level.D&C CapEx (Time Shift) – New CapEx forecast after time shit has been applied.D&C CapEx (Final) – Final CapEx forecast. Volume Time ShiftVolume Time Shift (Rigs) – Time shift input by rig.Volume Time Shift (Well L1) – Time shift input by well groups.Volume Time Shift (Well L2) – Time shift input by well.

MiscComments – Houses the comments placed in the various dashboards

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Accelerator Components Overview – cont.

Dashboards…

Financial StatementsP&L – Presents a view of the Income Statement module, including different product revenues, which can be drilled down into and are also presented in the charts.

FS DriversLease Op Expense Forecasting – Presents simultaneous views of both a single region and company-wide expense, enabling a user to immediately recognize the effect of changes in a regional on the forecasted outlook of the company overall. Accompanying chart compares YTD actuals with current forecast.

Revenue PricingPricing – Input for Sales Price and Differential Price as well as the final adjusted pricing.Volume Input – Volume input for all energy types by well level.Adj Volume – Risk factor table by region as well as time shifted volume and final adjusted volume after the risk factor has been applied.Rev Forecast – Revenue view for regions, well groups & wells. Time Shift Variance – Variance view between original forecast against new time shifted forecast.

CapExDrilling & Completion (CapEx Input) – D&C CapEx can be entered and captured across different products from this dashboard.

Volume Time ShiftTime Shift – Allows for a time shifted well and rig start date to be entered and calculated to adjust production volume.

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Accelerator Components Overview – cont.

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Oil & Gas Model Process Flow

Pricing Dashboard

Input the Oil Nymex, Henry Hub, & Liquid sales price and region differential pricings in the following sections shown in the image below. (Note: Energy type selection can be made with the drop down in the top left hand corner. The ‘Adjusted Price’ section will be automatically calculated after pricing has been inserted.)

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Revenue Pricing

Volume Input Dashboard

Input the original volume forecast for each well as well as each energy type in the following sections shown in the image below. (Note: Region and Energy Type selection can be done by the drop down in the top left hand corner. The ‘Adjusted Price’ section will be automatically calculated after pricing has been inserted.)

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Revenue Pricing – cont.

Time Shift Dashboard

Use the Time Shift feature when there is a need to delay or bring-forward a volume forecast. Time shifts can be executed by well groupings, wells & rigs. (Note: Well grouping time shifts take priority over well level time shifts.)

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Revenue Pricing – cont.

Adjusted Volume Dashboard

Input the reserve category risk factor according to region in the following section shown in the image below. The risk factor will be applied to the time shifted volume to produce the final adjusted volume. (Note: Region/well selection can be done by the drop down in the top left hand corner.)

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Revenue Pricing – cont.

Revenue Forecast Dashboard

The Revenue Forecast dashboard is an output dashboard created from the previous input dashboards (Pricing, Volume, Adjusted Volume, & Time Shift). This view shows the revenue produced by region, well group & well. (Note: Click on the region or well grouping in order to drill down each region or well grouping.)

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Revenue Pricing – cont.

Lease Operating Expense Dashboard

On the dashboard, select a region of focus in the top view. Adjust the figures formatted in blue as needed. The bottom view represents the company-wide total forecast, and the line items impacted by the user’s edits adjust automatically, along with the forecast bars in the accompanying chart.

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Lease Operating Expense

Drilling & Completion CapEx Input Dashboard

Input the original drilling & completion CapEx forecast amount for each well as well as each energy type in the following sections shown in the image below. (Note: Region and Energy Type selection can be done by the drop down in the top left hand corner. Similar to the ‘Adjusted Volume’ section the drilling & completion CapEx forecast amount will be time shifted according to the delays/bring-forwards submitted in the ‘Time Shift’ dashboard. The time shifted CapEx values can be viewed in the ‘D&C CapEx (Final)’ module.)

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Capital Expenditure

P&L Dashboard

Toggle between different dimensions on the top of the income statement module below the graph to select the desired P&L forecast outlook. Selecting the product sales legend item on the line chart graph will help isolate one specific product sales revenues over time.

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Financial Statements

Model Map

Below is a view of the initial Akili Upstream Oil & Gas Financial Planning Accelerator Model Map. As you make changes, you can always retrieve the most current Model Map directly from within your Anaplan Model.

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References