Energy Finance Specialization
In conjunction with energy industry representatives, McCombs
finance professors developed an MBA specialization 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 specialization
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 specialization 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 specialization 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 380K.1 Financial Accounting Standards & Analysis
ACC 380K.7 Financial Statement Analysis
Other Recommended Electives
LEB 380.32 Energy Law
Link to other Finance Specializations
Real Estate Finance
Private Equity Finance
Corporate Finance
Investment Management
