Energy Finance Concentration

In conjunction with energy industry representatives, McCombs finance professors developed an MBA concentration in energy finance. Companies in the energy industry have a demand for well-trained financial managers in areas such as project financing, valuation, risk management, and trading. Consequently, MBA students entering this industry must be prepared to understand, quantify, monitor, and manage the financial risks created by volatile energy prices and to participate in the evaluation of energy projects and energy derivatives. MBA students graduating from this concentration will be qualified to work in financial analysis, valuation, and trading positions with major oil and gas exploration, production, and distribution companies (such as Apache, BP, Chevron, ConocoPhillips, El Paso, and Shell); energy trading firms (such as ConocoPhillips, Duke Energy, and Shell); power companies (such as Duke Energy, and TXU); and leading investment banking, consulting, and financial services firms working in the energy industry (such as Citadel, Citigroup, Merrill Lynch and Wells Fargo Energy Group).

The academic cornerstone of the program is Financial Strategies - Energy Finance (FIN 394.2), which is taken concurrently with a specially designated energy finance section of another course, Financial Risk Management (FIN 397.4). The combination of these two courses addresses three broad areas of study in an energy context: asset valuation, corporate finance, and risk management. The valuation portion covers the valuing of financial contracts and derivatives securities. The corporate finance section examines financing decisions, business valuation, and mergers/acquisitions. The risk management area considers hedging and risk management strategies. Students in this concentration also participate in professional seminars on the "physical" side of the energy business to provide background on topics such as energy exploration, production, and distribution. Energy professionals play an important role in student development as they assist with these seminars and participate in class sessions on major energy finance issues. The concentration is supported by the Center for Energy Finance Education and Research and more information can be obtained from the Center’s website: http://cefer.mccombs.utexas.edu/.

Curriculum Requirements
FIN 394.1 Advanced Topics in Corporate Finance
FIN 397.1 Investment Theory & Practice

Finance Block
The following two Finance courses are offered during the Fall Semester:
FIN 394.2 Financial Strategies - Energy Finance
FIN 397.4 Financial Risk Management - Energy Finance

Accounting Block
Choose one of the following accounting courses:
ACC 380D Advanced Topics in Financial Reporting
ACC 380K.7 Financial Statement Analysis

Other Recommended Electives
LEB 380.32 Energy Law