The sensitivity analysis feature in Lens Upstream allows users to assess how an asset’s value is affected by percentage (%) changes in price, production, and/or costs.
Sensitivities can be analysed for the following metrics:
Price: Liquid/Gas
Production: Liquid/Gas
Expenditure
Tariffs
When valuing an asset or assets, to access sensitivity analysis, use the following steps:
Navigate to the Upstream Valuations dashboard to run your initial valuation:
Click ‘Edit Assumptions’ to open the valuation settings window:
Fom the settings panel, select ‘Sensitivities’ to open the sensitivities menu:
Enter the sensitivities (%) desired and click ‘Apply’ to rerun the asset(s) valuation with the new sensitivities applied.
💡Tip: Percentage changes (both negative and positive) can be made to prices (liquid/gas), production (liquid/gas), expenditure (capex/opex), and tariffs (payments/receipts). Only one sensitivity value can be applied to each metric, however more than one metric can have a sensitivity applied.
Cumulative effects of all inputted sensitivities will be used to produce an updated value (including updated cash flow and calc file) for the asset(s) being analysed. All consolidated reports and asset calc files will also be updated to reflect the sensitivities applied during the valuation process.
What's Next?
Now you have learned how to run sesitivity anlyses in Lens Upstream, why not take a look at our articles covering additional Valuation Settings and Asset Models (calc files)