Developing a Fully Integrated Long-Range Plan

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Edgewater Ranzal presented how Cenovus Energy transformed their long-range planning (LRP) process through the implementation of Oracle's Hyperion Strategic Finance (HSF). at the Association for Finance Professionals (AFP) 2013 Annual Conference.

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Developing a Fully Integrated Long-Range Plan

  1. 1. ONE Company, ONE Team: Developing a Fully Integrated Long-Range Plan Kent Sweezey Cenovus Energy Corporate Planning Steve Coverick Edgewater Ranzal Strategic Planning Practice October 30, 2013
  2. 2. Agenda Company Overviews Long-Range Planning Overview Development Considerations EPM Platform High Level Demonstration Questions & Answers
  3. 3. Company Overview: Cenovus TSX, NYSE | CVE Enterprise value $29 billion Shares outstanding 756 MM 2013F production Oil & NGLs Natural gas 2012 proved & probable reserves 183 Mbbls/d 515 MMcf/d 3.1 BBOE Bitumen Economic contingent resources* 9.6 Bbbls Discovered bitumen initially in place* 93 Bbbls 1.5 MM net acres Lease rights** P&NG rights 5.5 MM net acres Refining capacity 229 Mbbls/d Values are approximate. Forecast production based on midpoints of the July 24, 2013 guidance document. Cenovus land at December 31, 2012. *See advisory. **Includes an additional 0.5 million net acres of exclusive lease rights to lease on our behalf and our assignee’s behalf. © 2013 Cenovus Energy Inc.
  4. 4. Company Overview: Cenovus Mbbls/d Volumes are shown before royalties and net to Cenovus. 2013F based on midpoints of the July 24, 2013 guidance document. 2014F - 2023F based on future price assumptions as noted in the advisory. Forecast volumes are estimates only and subject to regulatory and partner approvals. See advisory. © 2013 Cenovus Energy Inc.
  5. 5. Company Overview: Edgewater ► NASDAQ: EDGW ► The Boston Globe’s Top 100 Business ► Edgewater Top 500 fastest-growing stocks on Wall Street Ranzal Planning 2001 Planning Founded in 1996 Essbase Acquired Vertical Pitch 2007 HFM/ FDM Acquired by Edgewater 2004 Data Integration & Warehousing/ CRM/ Web 2.0 Build OBI Team 2011 OBIEE Acquired Meridian 2010 HSF Build DRM & HPCM Teams 2009 DRM & HPCM ► ► ► ► One of the largest Full-Service Oracle/Hyperion EPM and BI practices Oracle Platinum Partner Multiple Oracle Partner of the Year awards Premier Consulting Services in North America and Europe
  6. 6. Company Overview: Edgewater Business Intelligence Consolidation Planning Project Management Infrastructure Data Services Support Services Training
  7. 7. LRP Overview: Purpose Budget Foundation Stewardship and Capital Discipline Sensitivity and Scenario Analysis Collaboration
  8. 8. LRP Overview: High Level Process Executive Guidance Forecasts and Analyses Review and Communication
  9. 9. LRP Overview: CP’s Role • • • • • Corporate forecast model Data sources integration Financial and operational reports Sensitivity and scenario analyses Reporting consistency Budget Outlook LRP
  10. 10. LRP Overview: Challenges • • • • • Complex and segregated spreadsheets Cumbersome scenario analyses Limited documentation Version control Duplicated efforts
  11. 11. Development Considerations • Spend time on model design – – – – – – – Actuals  Outlook/Budget  LRP integration Understand routine / non-routine transaction impact Focus on strategic imperatives Corporate hierarchy views (i.e. legal vs mgmt) Customized handling of data sources Naming convention Global assumptions
  12. 12. Development Considerations 360o training Customized Reports Micro and Macro Testing Documentation Global Sensitivities Flexibility Integration Maintenance
  13. 13. EPM Platform: Integration Hyperion Planning Ops Planning HSF Essbase Other Inputs 13 Excel Reporting
  14. 14. EPM Platform: HSF Economic Shifts Predictive Modeling & Simulation Capacity Planning Long-Term (3-5 Year) Full Financial Statement Projections Key Performance Metrics New Product Offerings Acquisitions / Divestitures Product Pricing Commodity Pricing Growth Initiatives Long-Term Financial Planning Value Management Discounted Cash Flow Economic Value Added Liquidation Value What-if Analysis Corporate Development Treasury Strategies Capital Structure Debt Issuances/Payments Covenant Analysis Credit Ratings
  15. 15. High Level Demonstration
  16. 16. Pre-Built Accounting Integrity • Pre-built, fully integrated financial statement foundation • Pre-built forecast methods and formula functions • What-if Analysis toolkit
  17. 17. Powerful Scenario Capabilities
  18. 18. Easily Analyze Various Combinations Mix and Match Scenarios Capital Projects included Acquisition excluded
  19. 19. World Class Treasury Analysis • Calculates net cash surplus or deficit from multiple models and scenarios • Funding Options tool to re-allocate surpluses and fund deficits • Debt scheduler • User-defined reports to monitor covenants, credit ratings, and earnings per share
  20. 20. Acquisition/Divestiture Modeling
  21. 21. Set Strategic Targets in HSF
  22. 22. Align the Planning Process
  23. 23. Seed Budgets with Strategic Targets From Strategic Plan
  24. 24. Tweak Budget with Targets in Mind
  25. 25. Update Targets with Latest Forecast
  26. 26. Cenovus Forward Looking Information
  27. 27. Cenovus Oil & Gas and Financial Information

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