Navigation:  Application Modules > Contracts > Contracts > Price Formulas

A contract within EnergySteward.com can have an unlimited number of price/cost formulas.  These individual price/cost formulas are comprised of volume sensitive tiers, with each tier containing its own set of calculation formula components.  A valid price/cost formula will always have at least one tier. Each of these price/cost formula tiers can reference their own unique set of price indices, price index baskets, fixed cost components, etc.  

 

Price formulas within EnergySteward.com are setup within a hierarchy.  At the top level, you have the formula itself, with rules governing the overall calculations of the formula.  Within the formula you have 1 or more volume sensitive pricing tiers.  These tiers are based on average volume per day (an example could include 0-100 as an initial tier, 101-200 could be next tier, etc.).  Within each tier you have one or more ordered price calculation components.  The price calculation components dictate how the price is determined (price index references, price basket references, fixed cost assignments, etc.).

 

 

These contract price formulas are referenced by the various contract meters/wells and routes (if applicable) on the same contract.  In addition, when a deal is setup against the contract, all price/cost formulas (and their respective associations to meters/wells and routes) are automatically synchronized to the deal.

 

The following screen indicates where a contract price/cost formula is added, updated, deleted or viewed.

 

 

Add Price/Cost Formula (button) - Click this button to add a new price/cost formula to the contract.

 

View/Edit Grid Button (pencil) - Click this next to the applicable price/cost formula in order to change any of the information.

 

Delete Grid Button (red x) - Click this next to the applicable price/cost formula that you want to permanently delete.  When you delete a contract price/cost formula, then all information relevant to that contract price/cost formula will be permanently deleted. The price/cost formula will still exist on any deal production months whose volumes are in a 'Frozen' status.  In many cases, it might make more sense to set the appropriate from and thru effective dates to retain historical information on the contract level.   Important note: You will be presented with a confirmation ("Are you sure...?") dialog box prior to deletion.