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Prepalyst has 20 energy & power coverage interview questions with model answers, covering reserve-based valuation, commodity decks, contracted cash flows and ppas. Every question is graded on technical accuracy, completeness and interview communication. Practice is free.
A common first-round renewable-power follow-up after an analyst discusses project scale or revenue.
A solar project has 100 MW of nameplate capacity and a 30% capacity factor. Calculate its expected annual generation in MWh. Then explain why capacity factor is more useful than nameplate capacity when comparing…
Asked in power-coverage interviews to test why dispatchable generation can earn value even when it runs infrequently.
Explain the difference between energy-market revenue and capacity-market revenue for a gas-fired power plant. Why can a plant that runs only during peak hours still be economically valuable?
The opening question for midstream and infrastructure coverage interviews.
Explain the business model of a pipeline company. How do they generate revenue and what are the key risks?
The foundational E&P valuation question. Every upstream interview starts here.
Walk me through how you value an oil and gas company's reserves. What's the standard approach and what are the key drivers?
The core downstream question. Refining margins are what separates integrated majors from pure-play E&P.
Explain the refining crack spread. What drives refining margins and why are they so volatile?
Grid parity is the threshold where renewables compete without subsidies. Fundamental to understanding the energy transition.
Explain grid parity in renewable energy. When does it occur, and why doesn't it immediately drive fossil fuel displacement?
The renewables valuation foundation. Every power and clean energy interview uses LCOE.
Explain levelised cost of energy (LCOE). How is it calculated and why is it the standard metric for comparing different generation sources?
The foundational regulated utility question. Returns are set by regulators, not markets.
Explain how regulators determine the allowed return on equity for a utility. What factors go into the rate case, and how does this affect valuation?
MLPs were the dominant structure for midstream energy. Understanding them is still relevant for existing infrastructure.
Explain the master limited partnership structure. Why were midstream energy companies organised as MLPs, and what are the key considerations for valuation?
PPAs are the financing mechanism for renewables. Understanding them is essential for energy project finance.
Explain a power purchase agreement. How does it affect project economics and what are the key terms to negotiate?
OFS companies are highly cyclical. This tests whether you understand the sector dynamics.
Explain the relationship between oilfield services companies and E&P operators. How does the cycle work, and why are OFS margins so volatile?
LNG is a growing energy subsector with unique economics. This tests whether you understand the global gas market.
Explain how LNG pricing works and the economics of LNG transport. How does it differ from pipeline gas?
Every E&P valuation includes oil price sensitivity. This tests whether you understand the mechanics.
An E&P company has PV10 of $1 billion at $70/bbl oil. What happens to PV10 at $60/bbl and $80/bbl, and why is the relationship non-linear?
Tests whether you understand sector-specific valuation metrics versus generic multiples.
Why do E&P companies trade on PV10 rather than EV/EBITDA, and what does PV10 actually measure?
An E&P coverage analyst is expected to turn a benchmark price deck into a realised-price and cash-flow forecast.
An E&P company forecasts 10 million barrels of production. Your WTI deck is $75/bbl, but its basin has a $6/bbl transport differential, and 40% of volumes are hedged at $70/bbl. Calculate the blended realised price…
The strategic question facing every energy coverage group. The energy transition changes asset values.
How does the energy transition affect the valuation of traditional fossil fuel assets, and how do you model the risk?
An upstream coverage case tests whether you can connect commodity hedges to liquidity and valuation without valuing a temporary mark as a permanent asset.
An E&P company has 2027 production of 10 million barrels. It has hedged 60% of that volume with swaps at $75 per barrel. Your base oil deck is $65, while the spot market is $80. How should the hedge book affect your view…
A power and utilities associate may use this case to test whether a candidate can distinguish headline power prices from an asset's realised economics.
You are valuing a 200 MW merchant solar project. Its expected annual output is 350,400 MWh and the forecast average hub price is $50/MWh. Because solar generation is concentrated in low-price midday hours, the project…
Energy coverage and natural resources funds test reserve-based valuation directly.
How do you value an exploration and production company? Why don't the standard methodologies work?
Energy M&A often involves asset swaps rather than corporate transactions. This tests sector-specific deal mechanics.
Two large E&P companies propose swapping assets in different basins to consolidate positions. How do you value the swap and ensure it's fair to both parties?
Write your answer, get it graded on technical accuracy, completeness and communication, and see exactly which mechanic you missed.
Firm names indicate where a question type is commonly reported in interviews. They are not sourced from, endorsed by, or affiliated with the firms named.