ComboCurve: Hedge Case Workflow

ComboCurve: Hedge Case Workflow

ComboCurve: Hedge Case Workflow

Building a Hedge Case in ComboCurve

To build a hedge case in ComboCurve the first step will be to create a case. From the project wells tab you can select “create well” and create a case that you can use for importing the hedge volumes to as well as applying the econ models to build the hedge case.

 

Below is an example of the hedge volumes imported into that case as well as the hedge case in an economic scenario built out.






In the economics, you will want to start with applying a simple 100% WI 100% NRI model, this will make sure everything is captured and running correctly across the other models.

Next, you will create a dates model unique to the hedge utilizing your same As of and Discount date as the rest of the econ, but with the “No Cut Off” option as seen below.


Then you will want to apply the pricing model. For pricing you can utilize out price deck functionality and pull in the most recent futures pricing, however, you will model it as an inverse. You can copy out the column into excel once loading it in, and then simply apply a negative to all the pricing.

You can then build out a differential model, here you can model in all the hedge swaps, this will allow you to generate multiple sensitivities if desired without having to manipulate the swaps.


With those economics all modeled out, you can then run and generate the economics. You can also build a custom column and utilize it aggregate the wells and split out the hedge into its own aggregation key so that it is on its own separate page in the pdf reports, and split out in the csv.

Note that currently, there is not a way in ComboCurve to zero out or offset those volumes natively in the tool in the economics outputs, hence the aggregation coming into play again. However, you can utilize the csv export to extract the data, and then offset those and all the other economics should be tied out and ready.


Workflow Video


In this video, Travis Runge walks us through a hedge case example utilizing the scenario and economics modules. If you have any questions about the following workflow or anything at all, don't hesitate to submit a ticket by clicking the question mark icon in the top right of the screen.