KPMG Presentations

Tuesday, May 12, 2009

Opening General Session: Opening Comments

General Session

The New Energy Revolution - What Does it Mean for the Energy Sector?

Many observers have called President Obama's cabinet the greenest ever. Indeed, the president has called for a revolution in how we make, sell, buy, use, and price energy in the US. This point of view will likely have far-reaching effects on broader energy markets. This panel will explore a number of related topics including the pricing of carbon in the marketplace, the development of renewable energy mandates, use of energy tax policy as both a carrot and a stick, and the future of fossil fuels in the US.

• Moderator:
  John Gimigliano, Principal, KPMG
• Speakers:
  Kenneth Green, Resident Scholar, American Enterprise Institute; Maryam Sabbaghian, Manager - Policy and Strategic Planning
  ConocoPhillips; John Savage, Managing Director, Verdeo Group; Tyson Slocum, Director, Energy Program, Public Citizen

Concurrent Sessions

I-A: Accounting and Tax Impacts in Uncertain Times

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An uncertain economic environment has resulted in complex accounting and tax challenges. Companies are now facing issues in areas such as goodwill and intangibles, valuation, liquidity and going concern, derivatives instruments and hedging activities, and income taxes. This panel will discuss the impact of these complex accounting and tax challenges and how energy companies are responding.

• Who should attend:
  CFOs, Controllers, Accounting Managers, and Tax Professionals
• Moderator:
  Mark Zajac, Partner, KPMG
• Speakers:
  Chad Libertus, Partner, KPMG; Mike Pearl, Corporate Controller, Anadarko Petroleum; Frank A. Pici, Executive Vice President and Chief Financial Officer, Penn Virginia

I-B: Strategic Joint Ventures - Key Considerations in Managing Operational and Financial Risks

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Transparency, visibility, and communication are all key drivers to achieving the partnership goals in a strategic joint venture and mitigating operational and financial risks for all parties. This session will focus on the challenges and opportunities created through joint venture partnerships. Executives will discuss the practical challenges of operating and participating in joint venture partnerships and the techniques they have used to manage these relationships successfully.

• Who should attend:
  CFOs, Corporate Finance Executives, Controllers, Business Development Managers, and Internal Audit Directors
• Moderator:
  Susanne Schmelz, Partner, KPMG
• Speakers:
  Stephen Bergeron, Manager, Non-Operated Joint Ventures, Chevron Pipe Line; Terry J. Corrigan, Director - Contract Compliance and Field Opertions Audit, El Paso; John McCraw, Vice President, Audit Services, Spectra Energy;
  Ray Merola, Supply and Distribution Global Manager - Joint Ventures, Shell Oil Company

I-C: Cost Optimization for Energy Companies

Energy companies are focusing on cost reduction in order to improve profitability in this turbulent economy. This panel will feature a discussion on different techniques companies are using for cost reduction. The topics will include how companies are using private equity techniques to deliver across the board results, the evolution of outsourced shared services, supply chain and materials rationalization, and the benefits of a sound sourcing and supplier management strategy to deliver cost improvements.

• Who should attend:
  CFOs, Corporate Finance Executives, Controllers, Procurement Officers, Shared Services Leaders, and anyone else involved in services, equipment, and materials supply chain
• Moderator:
  Mark Tackley-Goodman, Managing Director, KPMG
• Speakers:
  Rob Johnston, Finance Global Sourcing Leader, BP; Bobbi Lambright, President, ATCO I-Tek
  Martin Scott, Partner, KPMG (UK)

Madeleine K. Albright, Former United States Secretary of State

Energy and Security in a Time of Doubt
Former United States Secretary of State Madeleine Albright offers candid reflections on the policy choices facing the Obama administration, the energy industry, and the world in a period of economic uncertainty and ongoing strife. Drawing on her widespread experience in government and her familiarity with key decision makers, Albright will provide a provocative look ahead at an array of challenges that affect us all.

Concurrent Sessions

 II-A: Regulatory Update

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This panel will discuss new SEC rules impacting energy companies, including the Modernization of Oil and Gas Reporting final rule, XBRL, and other recent SEC initiatives. In addition, the panel will discuss recent and proposed tax legislation that impacts energy companies.

• Who should attend:
  CFO's, CAO's, Controllers, Directors of Financial Reporting, Accounting Managers, and Tax Professionals
• Moderator:
  Jeff Andrews, Partner, KPMG
• Speakers:
  Kyle Bibb, Managing Member, WTP Consulting LLC
  Melanie Dolan, Partner, KPMG; Don Roesle, Chief Executive Officer, Ryder Scott

II-B: Tax Incentives for Capturing and Using Carbon - Real or Aspirational?

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Recent legislation has created a new tax incentive in the U.S. for carbon sequestration that impacts many areas of the energy industry including upstream, downstream, and the power sector. The capturing of carbon and use of the captured carbon requires technology and infrastructure. Optimizing the tax benefit of the incentive creates opportunities for joint ventures across energy sectors. This session will take a practical look at the credit in the context of existing technology and will also explore its interplay with other tax incentives.

• Who should attend:
  CFOs, Corporate Finance Managers, Business Development Managers, Controllers and Tax Professionals
• Moderator:
  Michael Terracina, KPMG
• Speakers:
  Tracy Evans, Senior Vice President, Reservoir Engineering, Denbury Resources; Prabu Natarajan, Vice President, Tax, The AES Corporation; Bob Swiech, Director, KPMG

II-C: Credit and Liquidity Issues in the Current Economy

Volatile energy prices and capital markets have increased credit and liquidity risks for all energy companies. Credit and liquidity problems can harm seemingly well-run companies if they do not manage these risks properly. The threat of counterparty bankruptcy and default has increased the need for effective credit and liquidity risk management practices. Risk measures and tools that were predominant before September 2008 may not prove sufficient in today's world.

This panel will explore some of the better practices emerging from industry for managing these risks as well as some pending legislation proposed in response to market issues. Topics discussed may include:

• Approaches to measuring and managing liquidity risk
• Challenges with credit - scoring, collateral management, measuring future exposure
• New regulations (e.g. DMTA)

• Who should attend:
  CFOs, Controllers, Accounting Managers, Risk Professionals, and Treasurers
• Moderator:
  Randy Wilson, Principal, KPMG
• Speakers:
  Jitendra Sharma, Principal, KPMG; William W. Windle, Managing Director, RenRe Energy Advisors; Evan Zuckert, Managing Director - Structured Solutions, Corporate Investment Banking, BNP Paribas

Concurrent Sessions

 III-A: IFRS Insights and Issues

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As the globalization of accounting standards continues with IFRS, financial executives and audit committee members need to stay informed of the issues from emerging accounting standards. This session will discuss recent domestic and international IFRS developments, and consider the impact these developments have on the energy industry and how companies are addressing the related issues.

• Who should attend:
  CFOs, CAOs, Controllers, Directors of Financial Reporting, and Accounting Managers
• Moderator:
  Ted Brooks, Partner, KPMG
• Panelist:
  Angela Butler, Controller, Husky Energy; Jimmy Daboo, Partner, KPMG (UK); Glenn Menuz, Vice President and Controller, TransCanada; Jon Wierda, Partner, KPMG

III-B: Tax Risks and Opportunities for a Mobile Workforce - Planning for No Surprises

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As companies implement cost containment strategies, extended business travel and short-term assignments (rather than typical longer term assignments) are playing an increasingly larger role in international assignments. During this session, we will focus on what energy companies can do to better understand and mitigate both the corporate and personal tax risks associated with this less visible portion of their globally mobile workforce. As global tax jurisdictions continue to mature and technology enables improvements to compliance monitoring, it has never been more important to explore and evaluate these risks and opportunities.

• Who should attend:
  CFOs, Controllers, Accounting Managers, Risk Professionals, and Tax Professionals
• Moderator:
  Heather Crowder, Principal, KPMG
• Speakers:
  Lance Foreman, Director, Expatriate Services, ConocoPhillips;
  Gus Juneau, Partner, KPMG; Ken Kleier, Senior Tax Counsel, Chevron; Ray Pascuzzi, Partner, KPMG

III-C: Meeting Energy Infrastructure Needs - 2010 and Beyond

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Significant investment in infrastructure is needed across both the power and utilities and oil and gas sectors. This panel will address several questions in discussing how the energy industry can meet infrastructure demand amid significant challenges. What strategic choices should companies make? What might the impact of changes in legislation or supply and demand mean for choices that require significant capital commitments for many years? Specifically, the choices for power and utilities include the impact of SmartGrid technology as well as grid expansion and optimization requirements. For oil and gas, some of the choices revolve around increasing or decreasing manufacturing and distribution capacity.

• Who should attend:
  CFOs, Controllers, Business Unit Leaders, Business Development Managers, and Project Managers
• Moderator:
  John Kunasek, Partner, KPMG
• Speakers:
  Bob Bergbauer, Principal, KPMG; Jim Greer, Senior Vice President, Asset Management and Engineering, Oncor;
  Kenneth Mercado, Division Senior Vice President, Advanced Metering System Deployment, CenterPoint Energy; Tom Zimmerman, Vice President, Technology, Schlumberger Felllow, Schlumberger

Wednesday, May 13, 2009

Is Energy Innovation Sustainable?

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Energy innovation is likely to play a significant role in helping achieve the Obama administration's stated goals on increasing renewable energy production, improving energy efficiency, and reducing greenhouse gas emissions. But is it a sustainable way to achieve those goals? This panel discussion features industry executives offering their perspectives on the economics of cleantech investments and the investment outlook for energy innovation.

• Moderator:
  Phil Smith, Partner, KPMG

• Speakers:
  Peter Duprey, Chief Executive Officer, ACCIONA Energy North America; Andy Karsner, U.S. Assistant Secretary of Energy, Office of Energy Efficiency and Renewable Energy (2005-2008); Mauricio A. Vargas, Chief Executive Officer, Greenhouse Gas Services, LLC

IV-A: Accounting and Reporting Update

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This panel will explore recent accounting disclosure pronouncements and trends, discuss current accounting issues arising from the various accounting standard setters, and will take a look forward at new accounting standards on the horizon.

• Who should attend:
  CFOs, CAOs, Controllers, Directors of Financial Reporting, Accounting Managers, and others involved with Investor Relations
• Moderator:
  Jamie Brickman, Partner, KPMG
• Speakers:
  Scott Agosta, Vice President, Financial Reporting, XTO Energy; Chris Champion, Partner, KPMG; Robert Hilbert, Partner, KPMG; Steve Rathjen, Partner, KPMG

IV-B: Leading Practices for Reducing Tax Risks and Cost Through Technology Integration and Automation

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The corporate tax function has been transformed in recent years to adapt to a host of changes in the regulatory environment. Leading practices for tax operational issues continue to evolve as companies look for ways to comply with their reporting obligations and reduce risks and costs. This session will offer an up to date look at how world class organizations use technology in their end-to-end income tax process, including enhancing data quality through design and rework of ERP systems, "tax sensitizing" the forecasting and financial close processes, and integrating the processes and data flow.

• Who should attend:
  CFOs, Controllers, Accounting Managers, Risk Professionals, Treasurers, and Tax Professionals
• Moderator:
  Brad Brown, Partner, KPMG

• Speakers:
  Patricia A. Galbraith, Director, State and Local Taxes, Entergy
  Tom DeGeorgio, U.S. Country Tax Manager, Shell Oil Company; Dave Shea, President and Chief Executive Officer, CORPTAX, LLC; Dwayne Van Wieren, Partner, KPMG

IV-C: eDiscovery and Records Risk Management: Cost Optimization and Risk Mitigation Opportunities

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An increasing number of large energy companies are performing the early eDiscovery phases of managing, identifying, preserving, and collecting electronic information while outsourcing the latter phases of processing, reviewing, producing, and presenting the information. This panel will discuss how companies are focusing on being more proactive within the Electronic Discovery Reference Model (EDRM) approach of the eDiscovery process to help reduce costs and risks by planning ahead.

• Who should attend:
  CFOs, General Counsel, Attorneys, e-Discovery Personnel, Records Managers, IT Professionals, and others interested in reducing cost and risk in discovery and records management
• Moderator:
  John Williams, Partner, KPMG (CAN)

• Speakers:
  Fred Borchardt, Partner, KPMG; Kelli Brooks, Principal, KPMG; David Cessna, Litigation Consultant, Chevron Services Company; Gail Foster, Special Counsel, Baker Botts LLP; Deana Galloway Uhl, Litigation Support Coordinator, Marathon Oil Company

Luncheon & Keynote Address

Energy Mix in Transition: Balancing the Economy, Climate Change, and Politics

In his address, Marvin Odum, President of Shell Oil Company, will give insights into his approach for navigating an energy enterprise through economic uncertainty, falling oil demand, and calls toward a green economy.

Odum will offer his perspective on the need for a realistic plan toward achieving the benefits of alternative energy, as well as the critical role oil and gas resources, coupled with technology and sustainable approaches, will play in strengthening the U.S. economy and energy security.

More importantly, Odum believes that advocates for industry, the environment, and public policy have more in common than what is typically portrayed, and the solution lies in finding a shared framework under which all can come together and implement a realistic energy and climate change roadmap.

Marvin E. Odum, President, Shell Oil Company

Closing Comments

Bill Kimble, National Sector Leader - Energy & Natural Resources, KPMG