Blowdown scenario modelling -- O&G

How would one go about modelling this based on public filings for a single-asset producer with ~100 operating wells and no public detail on each individually? All I know (or at least, all I think I know) is the current overall corporate decline rate and a general idea of the decline rate for any newly drilled well.

Note I am not an O&G guy.

8 Comments
 

I don't know if you need a type curve for this but see if you can get access to HPDI or a similar service that can you give you historical production for operators in the area.

 

I was able to build an individual well type curve that fit the Company's estimates based on equity research and investor presentations; however, I have no idea how many wells are at what stage of production. Or should I treat the overall company as a single well (eg if I know next year's corporate decline is 40pct and a typical individual well is 40/20/15/10 then I'd model year 2 corporate decline of 20pct, then 15, etc...)

 

@rufiolove ? you're an O&G guy, right?

"After you work on Wall Street it’s a choice, would you rather work at McDonalds or on the sell-side? I would choose McDonalds over the sell-side.” - David Tepper
 

Yeah, as @Nabooru mentioned, you could put together the PDP decline rate and apply that to existing PDP production. For future development (i.e. PUD locations and Probable / Possible locations) you would want to get as granular as possible, using multiple type curves if necessary based on variance in geology, geography, any basin level detail you would have. This would allow you to construct a production waterfall. If you wanted to do a full blowdown NAV, you would just need to run out all wells through their economic life.

Career Advancement Opportunities

July 2026 Investment Banking

  • Evercore 01 99.4%
  • Moelis & Company 01 98.9%
  • JPMorgan 01 98.3%
  • Guggenheim Partners 01 97.7%
  • Morgan Stanley 07 97.1%

Overall Employee Satisfaction

July 2026 Investment Banking

  • Moelis & Company No 99.4%
  • Morgan Stanley 02 98.9%
  • Evercore 01 98.3%
  • BMO Capital Markets 12 97.7%
  • Banco Santander 01 97.1%

Professional Growth Opportunities

July 2026 Investment Banking

  • Evercore 01 99.4%
  • Moelis & Company 01 98.9%
  • Morgan Stanley 06 98.3%
  • Goldman Sachs 01 97.7%
  • JPMorgan No 97.1%

Total Avg Compensation

July 2026 Investment Banking

  • Vice President (15) $434
  • Associates (46) $258
  • 3rd+ Year Analyst (8) $210
  • 2nd Year Analyst (22) $179
  • Intern/Summer Associate (13) $156
  • 1st Year Analyst (79) $150
  • Intern/Summer Analyst (73) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
Secyh62's picture
Secyh62
99.0
3
BankonBanking's picture
BankonBanking
99.0
4
kanon's picture
kanon
99.0
5
DrApeman's picture
DrApeman
98.9
6
GameTheory's picture
GameTheory
98.9
7
dosk17's picture
dosk17
98.9
8
CompBanker's picture
CompBanker
98.9
9
Betsy Massar's picture
Betsy Massar
98.9
10
Mimbs's picture
Mimbs
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”