ComboCurve: Ownership & Reversion

ComboCurve: Ownership & Reversion




NOTE: CC ownership reversions are "concurrent" or "in parellel" so if multiple reversion are used, ANY can trigger based on any criteria.  This is opposed to "in series" where one has to happen before another will be considered.
  1. Key: Initial (or only) ownership or a reversion from that original ownership based on a criteria
  2. WI - Sum of modeled entity’s working interest in this well
  3. NRI - Sum of modeled entity’s revenue interest including any overrides owned.  Add the RI and ORRI together for example.
  4. Lease NRI - Used for economic cut-off. Calc’d by NRI/WI but may need to be manually adjusted.  LNRI should represent grossed-up WI minus total lease burdens for when OPERATOR would shut-in well due to economics.  If unknown and offset analogues are unavailable, 75% is used as a proxy
  5. Reversions:
    1. Reversion Type & Reversion Value - *Click the +Reversion button at the top to open up to 10 reversions*  Reversions are changes in well ownership based on triggers calculated either on Gross or Net current balances or other criteria
      1. IRR (%) Internal Rate of Return hurdle above payout ($ invested in CAPEX minus $ in cash flow) at a given return
      2. PO W/INV ($) Remaining payout plus any investments based on the CAPEX in the Investment Section.
      3. PO ($) Remaining payout (investments not considered)
      4. Undisc ROI (%) Undiscounted return on the investments as a multiple (1x is return on the original CAPEX, 2x+ are for statutory or contractual penalty for nonparticipation for example)
      5. As Of (months) After As Of date
      6. Date (date) Specified calendar date
      7. WH Cum Oil (bbl) Gross wellhead oil prod from As Of date (Production or Forecast output)
      8. WH Cum Gas (Mcf) Gross wellhead gas prod from As Of date (Production or Forecast output)
      9. WH Cum BOE (bbl) Gross wellhead boe (at equivalency set for project) prod from As Of date (Production or Forecast output)
    2. Reversion Tied to - For selections of: IRR, PO W/INV, PO and Undisc ROI it is necessary to pick the starting point used to start taking in to account (or whittling down) the cash flow using the below selections.  This is for instances of when you might not want have just a uniform date applied to everything but to allow modeling of pro-forma amounts like when you have a payout balance as of today rather than the original investment.  ie, you ask the operator or your accounting department for the current book value of a well.
      1. Include NPI - should the NPI (if present) be considered in the calculation of the items above or not (yes/no).
    3. Balance: Whatever criteria picked can be Gross (8/8ths) or Net (portion you own)
  6. Hidden unless populated or selected to display on "Optional Headers" at top-right ("Unless Populated" means, if a well has not phase ownership for NGL for instance, it will not be displayed unless selected to always display by checking the box.  If it does have a value on this model, it WILL show up however even if it is not explicitly selected to show up.  This is to avoid "hiding data" which might affect well economics.
    1. NPI - % of net operating income (Rev–Exp–PTax) not included in the normal interests above. NPI entered below but selection here represents whether it is positive or negative.  Type:
      1. Revenue (+) bonus - owns NPI paid them by another
      2. Expense (-) burden - pay another’s ownership of NPI
    2. Phase NRI - Phase Ownership only selected when different for modeled entity based on separate product –vs- the primary phase. All products assumed equals to the entered "master" NRI unless populated here (null means use primary).
      1. Does NOT yet support Custom Streams (on phase ownership)
  7. Columns (top-right) allow display/hiding any of the column headers including the Optional Headers.

Example for Reversions Tied To:
We're trying to model reversion using a Payout with investment reversion of 0$. Meaning, the well has to break even from capex, expense, and prod taxes through revenue. The well economics is effective as of 9/15/2024. However, we want to include the volumes, expenses, production taxes and capex from the "Tied to" date to the reversion calculation. You can then set up the "Tied to" date as an hardcoded date before the "As of" date. 
Note: If you have any capex applied prior to the Tied to date, it will not be taken into account when calculating the reversion timeline. 

Import/Export Ownership 

In the case you have unique ownership values for a group of wells, you can follow this workflow to import unique ownership
  1. Create a dummy ownership model (you can put any values for WI, NRI, and LNRI)
  2. Apply the dummy model to all the wells that have unique ownership 
  3. Click on the 3 dots in the Ownership and Reversion column header in the scenario table
  4. Click on export ownership
  5. In the export csv, locate the WI, NRI, and LNRI columns
  6. Change the 3 column headers to the unique values
    1. Note: each row in the export represents a well, each row has a respective Chosen ID that you can use to lookup from an internal ownership spreadsheet
    2. Note: Lease NRI is NRI/WI * 100
    3. Note: Do not change anything else or the import may not work
  7. In ComboCurve, click the 3 dots again and csv import
  8. In the menu, you'll need to select "Generate all unique assumptions" (default setting). 
  9. If you want to add these unique ownership in a new qualifier, you can check the box on "Creating a new qualifier". If not, ComboCurve will overwrite the current ownership model applied. 
  10. Select the csv file and click on Import

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