Class DCFCalculator

java.lang.Object
neqsim.process.util.fielddevelopment.DCFCalculator
All Implemented Interfaces:
Serializable
public class DCFCalculator extends Object implements Serializable
Discounted Cash Flow (DCF) calculator for field development economics.

Calculates NPV, IRR, payback period, and generates cash flow profiles for oil and gas field development projects. Supports CAPEX scheduling, production-linked revenue, OPEX, royalties, and tax with loss carry-forward.

Usage example: 


DCFCalculator dcf = new DCFCalculator();
dcf.setDiscountRate(0.08);
dcf.setProjectLifeYears(20);
dcf.setTaxRate(0.22);
dcf.setRoyaltyRate(0.0);
dcf.addCapex(0, 500e6);   // Year 0 investment
dcf.addCapex(1, 300e6);   // Year 1 investment
dcf.setAnnualProduction(new double[]{0, 0, 10e6, 15e6, 15e6, 12e6, ...}); // Sm3/yr
dcf.setProductPrice(1.5); // NOK/Sm3
dcf.setAnnualOpex(50e6);  // NOK/yr
dcf.calculate();
double npv = dcf.getNPV();
double irr = dcf.getIRR();
int payback = dcf.getPaybackYear();
Version:
1.0
Author:
ESOL
See Also:

  • Field Details

    • serialVersionUID

      private static final long serialVersionUID
      See Also:

    • discountRate

      private double discountRate

    • projectLifeYears

      private int projectLifeYears

    • taxRate

      private double taxRate

    • royaltyRate

      private double royaltyRate

    • deprecationYears

      private double deprecationYears

    • inflationRate

      private double inflationRate

    • capexByYear

      private double[] capexByYear

    • annualProduction

      private double[] annualProduction

    • productPrice

      private double productPrice

    • annualOpex

      private double annualOpex

    • opexByYear

      private double[] opexByYear

    • npv

      private double npv

    • irr

      private double irr

    • paybackYear

      private int paybackYear

    • profitabilityIndex

      private double profitabilityIndex

    • annualCashFlow

      private double[] annualCashFlow

    • cumulativeCashFlow

      private double[] cumulativeCashFlow

    • discountedCashFlow

      private double[] discountedCashFlow

    • calculated

      private boolean calculated

  • Constructor Details

    • DCFCalculator

      public DCFCalculator()
      Creates a new DCF calculator with default parameters.

  • Method Details

    • setDiscountRate

      public void setDiscountRate(double rate)
      Sets the discount rate for NPV calculation.
      Parameters:
      rate - discount rate as fraction (e.g. 0.10 for 10%)

    • getDiscountRate

      public double getDiscountRate()
      Gets the discount rate.
      Returns:
      discount rate as fraction

    • setProjectLifeYears

      public void setProjectLifeYears(int years)
      Sets the project life in years.
      Parameters:
      years - number of years

    • setTaxRate

      public void setTaxRate(double rate)
      Sets the corporate tax rate.
      Parameters:
      rate - tax rate as fraction (e.g. 0.22 for 22%)

    • setRoyaltyRate

      public void setRoyaltyRate(double rate)
      Sets the royalty rate.
      Parameters:
      rate - royalty rate as fraction (e.g. 0.12 for 12%)

    • setDepreciationYears

      public void setDepreciationYears(double years)
      Sets the depreciation period in years (straight-line).
      Parameters:
      years - depreciation period

    • setInflationRate

      public void setInflationRate(double rate)
      Sets the annual inflation rate for OPEX escalation.
      Parameters:
      rate - inflation rate as fraction (e.g. 0.02 for 2%)

    • addCapex

      public void addCapex(int year, double amount)
      Adds CAPEX investment for a specific year.
      Parameters:
      year - the year (0-based)
      amount - CAPEX amount in currency units

    • setCapexByYear

      public void setCapexByYear(double[] capex)
      Sets the complete CAPEX schedule by year.
      Parameters:
      capex - array of CAPEX by year

    • setAnnualProduction

      public void setAnnualProduction(double[] production)
      Sets the annual production profile.
      Parameters:
      production - array of annual production volumes (same unit as price)

    • setProductPrice

      public void setProductPrice(double price)
      Sets the product price per unit volume.
      Parameters:
      price - price per unit of production

    • setAnnualOpex

      public void setAnnualOpex(double opex)
      Sets a constant annual OPEX (used if opexByYear is not specified).
      Parameters:
      opex - annual operating expenditure

    • setOpexByYear

      public void setOpexByYear(double[] opex)
      Sets variable OPEX by year.
      Parameters:
      opex - array of OPEX by year

    • calculate

      public void calculate()
      Runs the DCF calculation.

    • calculateIRR

      private double calculateIRR()
      Calculates Internal Rate of Return using bisection method.
      Returns:
      IRR as fraction, or NaN if no solution found

    • calculateNPVAtRate

      private double calculateNPVAtRate(double rate)
      Calculates NPV at a specific discount rate.
      Parameters:
      rate - discount rate
      Returns:
      NPV at the given rate

    • getNPV

      public double getNPV()
      Gets the Net Present Value.
      Returns:
      NPV in currency units

    • getIRR

      public double getIRR()
      Gets the Internal Rate of Return.
      Returns:
      IRR as fraction

    • getPaybackYear

      public int getPaybackYear()
      Gets the payback year (first year cumulative cash flow becomes positive).
      Returns:
      payback year (0-based), or -1 if project never pays back

    • getProfitabilityIndex

      public double getProfitabilityIndex()
      Gets the profitability index (benefit-cost ratio).
      Returns:
      profitability index

    • getAnnualCashFlow

      public double[] getAnnualCashFlow()
      Gets the annual cash flow array.
      Returns:
      array of after-tax cash flows by year

    • getCumulativeCashFlow

      public double[] getCumulativeCashFlow()
      Gets the cumulative cash flow array.
      Returns:
      array of cumulative cash flows by year

    • getDiscountedCashFlow

      public double[] getDiscountedCashFlow()
      Gets the discounted cash flow array.
      Returns:
      array of discounted cash flows by year

    • toJson

      public String toJson()
      Returns the results as a JSON string.
      Returns:
      JSON representation of DCF analysis results