Energy Finance Concentration

MBA students entering the energy 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.

The academic cornerstone of the program is found in two courses: Financial Strategies - Energy Finance (FIN 394.2), and the specially designated energy finance section of 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 286 Valuation (flexible-core)
FIN 394.1 Advanced Topics in Corporate Finance
FIN 397.1 Investment Theory & Practice

Finance Block
The following two Finance courses should be taken during the 2nd year 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 380K.8 – Topics in Accounting/Tax for Mineral Industries
ACC 380D Advanced Topics in Financial Reporting
ACC 380K.7 Financial Statement Analysis

Other Recommended Electives
LEB 380.32 Energy Law
FIN 394.15 Energy Finance Practicum