@v587d/capital-generation 2.10.1 → 2.11.0

package/selected-skills/financeskills/skills/lease-accounting/SKILL.md

@@ -1,88 +0,0 @@
----
-name: lease-accounting
-description: When the user wants to account for leases under IFRS 16 or ASC 842. Also use when the user mentions "right-of-use asset," "lease liability," "incremental borrowing rate," "lease modification," "operating vs finance lease," "lease term," or "embedded lease."
-metadata:
-  version: 1.0.0
----
-
-# Lease Accounting (IFRS 16 / ASC 842)
-
-You are a Technical Accounting Manager. Your goal is to identify, measure, and account for leases correctly — initial recognition, subsequent measurement, modifications, and disclosure.
-
-## Initial Assessment
-
-1. **Lease Identification**
-   - Is there an identified asset (explicit or implicit, no substantive substitution right)?
-   - Does the customer control the use (direct how/for what purpose) and obtain substantially all economic benefits?
-   - Check embedded leases in service/outsourcing/transport/storage contracts.
-
-2. **Measurement Inputs**
-   - Lease term: non-cancellable period + reasonably certain extension/termination options.
-   - Payments: fixed, in-substance fixed, index-linked variable (in), usage-based variable (out), residual guarantees, purchase options.
-   - Discount rate: rate implicit in lease, else incremental borrowing rate (IBR).
-
----
-
-## Accounting Framework
-
-### Initial Recognition (lessee)
-- `Lease liability = PV of unpaid lease payments at the discount rate`
-- `ROU asset = liability + prepaid payments + initial direct costs + restoration estimate − incentives received`
-
-### Subsequent Measurement
-- Liability: effective interest method (interest = opening balance × rate; payments reduce balance).
-- ROU asset: depreciate straight-line over shorter of lease term and useful life (to useful life if ownership transfers/purchase option reasonably certain).
-- IFRS 16: single model. ASC 842: finance leases as above; operating leases keep single straight-line lease cost (liability math identical).
-
-### Exemptions
-Short-term (≤ 12 months, no purchase option) and low-value assets (IFRS only, ~$5k new): expense straight-line. Apply policy consistently and disclose.
-
-### Reassessment & Modifications
-- Index/rate change → remeasure liability against ROU (unchanged discount rate).
-- Term/option reassessment → remeasure with REVISED discount rate.
-- Modification adding asset at market rate → separate lease. Scope decrease → reduce ROU proportionately, gain/loss to P&L. Other modifications → remeasure against ROU.
-
----
-
-## Technical Analysis Steps
-
-1. **Build the amortization schedule** — period, opening liability, interest, payment, closing liability; parallel ROU depreciation track. Verify with code.
-2. **Classify P&L and cash flow effects** — depreciation + interest (IFRS); principal → financing, interest → policy choice (IFRS) / operating (US GAAP).
-3. **Transition/portfolio checks** — consistent IBR matrix by currency/term; completeness sweep of contracts > 12 months.
-
----
-
-## Output Format
-
-### Lease Accounting Memo
-
-**Conclusion**: lease/not a lease; classification (US GAAP); exemptions applied.
-
-**Measurement**: inputs table (term, rate, payments), initial liability and ROU values.
-
-**Schedule**: full amortization table + annual JE summary.
-
-**Judgments**: option assessments, IBR derivation, variable payment treatment.
-
----
-
-## Scripts
-- [calculate.py](./scripts/calculate.py): Deterministic functions for this skill's core computations. Run `python3 scripts/calculate.py` to self-test; import the functions instead of doing mental math.
-
----
-
-## References
-- [IBR Determination](./references/ibr-guide.md): Building incremental borrowing rates defensibly.
-
----
-
-## Assets
-- [commencement-summary-template.md](./assets/commencement-summary-template.md): Portfolio measurement and journal entry template.
-
----
-
-## Related Skills
-- **journal-entry**: For the monthly lease entries.
-- **aro-computation**: Restoration obligations attached to leased sites.
-- **statement-preparation**: Lease presentation and disclosure in statements.
-- **deferred-tax**: ROU/liability temporary differences.

package/selected-skills/financeskills/skills/lease-accounting/assets/commencement-summary-template.md

@@ -1,28 +0,0 @@
-# Lease Commencement Summary (IFRS 16 / ASC 842)
-
-**Lessee:** {entity} | **Commencement:** {date} | **Discount basis:** {IBR / implicit rate}
-
-## Portfolio Measurement
-| Lease | Asset | Payment | Timing | Term | Rate | Lease liability | ROU asset |
-|---|---|---|---|---|---|---|---|
-| | | | arrears/advance | | | | |
-| **Total** | | | | | | **{x}** | **{x}** |
-
-{ROU = liability + prepaid + initial direct costs + dismantling - incentives. State any differences.}
-
-## Year-1 P&L Impact
-| Lease | Interest expense | Depreciation | Total | vs old operating-lease rent |
-|---|---|---|---|---|
-
-## Initial Journal Entry
-| Account | Dr | Cr |
-|---|---|---|
-| Right-of-use asset | {x} | |
-| Lease liability | | {x} |
-
-## Judgments
-- Renewal/termination options {included/excluded - why}
-- Short-term / low-value exemptions applied: {list}
-
----
-*Present values computed with scripts/calculate.py. AI-prepared - review required.*

package/selected-skills/financeskills/skills/lease-accounting/references/ibr-guide.md

@@ -1,26 +0,0 @@
-# Incremental Borrowing Rate (IBR) Determination
-
-## Definition
-The rate the lessee would pay to borrow, over a similar term, with similar security, the amount needed to obtain an asset of similar value in a similar economic environment. It is lease-specific, not the company's WACC and not its existing average debt cost.
-
-## Build-Up Approach (the auditable method)
-`IBR = Reference rate (currency + term matched) + Credit spread (entity, secured basis) + Asset/security adjustment`
-
-1. **Reference rate**: government bond yield in the lease currency, tenor ≈ weighted-average lease payment timing (duration, not full term). NGN leases → FGN bond curve; USD → Treasury curve.
-2. **Credit spread**: from the entity's traded debt, recent loan pricing, or rating-implied spread matrix. Subsidiaries: stand-alone credit unless parent guarantee exists in the lease.
-3. **Security adjustment**: leases are effectively secured borrowing → deduct an unsecured-to-secured adjustment (commonly 20–60 bps; property leases at the higher security end).
-
-## Portfolio Practicalities
-- Build an IBR matrix: currency × term bucket (1–3y, 3–5y, 5–10y, 10y+) × entity, refreshed quarterly; apply to new leases by bucket.
-- Document the date of each rate — IBR is set at commencement (or modification), not reporting date.
-- Materiality shortcut: portfolio-level rate permitted for similar leases (IFRS 16.B1).
-
-## Common Audit Findings
-1. Using WACC or a flat round number across all leases.
-2. Term mismatch (10-year lease at a 1-year rate).
-3. Currency mismatch (USD rate on NGN-denominated payments — the inflation differential makes this badly wrong).
-4. Stale rates applied to new commencements after a rate environment shift.
-5. No security adjustment documentation.
-
-## Sensitivity
-Disclose/monitor: ±100 bps typically moves the liability ~4–8% on a 10-year lease. High-rate environments (NGN) make the discounting effect dramatic — a 10-year NGN lease at 18% discounts late-year payments to very little.

package/selected-skills/financeskills/skills/net-worth-tracker/EXAMPLE.md

@@ -1,21 +0,0 @@
-# Worked Example - net-worth-tracker
-
-## Ask
-
-> Here are my finances: checking $3,000, savings $12,000, 401k $68,000, car value $15,000. Debts: car loan $9,000, student loan $22,000, credit card $3,500. What's my net worth and how healthy does it look?
-
-## What a correct response contains
-
-Should total assets: $98,000. Should total liabilities: $34,500. Should calculate net worth: $63,500. Should compute debt-to-asset ratio: 35% (healthy, below 50%). Should assess liquidity: liquid assets $15,000 (15% — adequate). Should flag that 401k is the dominant asset at 69% and comment on investment concentration.
-
-## File-driven variant
-
-With fixture `evals/files/balance_sheet.csv`:
-
-> From the attached balance sheet (evals/files/balance_sheet.csv), calculate net worth, debt-to-asset ratio, and asset allocation. Compare to the prior period values in the file.
-
-Expected: Current net worth $87,500; prior net worth $74,200; change +$13,300 (+17.9%); debt-to-asset ratio 28.6%; investment assets 71% of total. Primary driver of growth: retirement account appreciation.
-
-## Compute, don't estimate
-
-All figures above come from [`scripts/calculate.py`](./scripts/calculate.py) — import its functions rather than doing arithmetic in prose.

package/selected-skills/financeskills/skills/net-worth-tracker/SKILL.md

@@ -1,98 +0,0 @@
----
-name: net-worth-tracker
-description: When the user wants to calculate their net worth, track assets and liabilities over time, measure financial progress, analyse asset allocation, or set a net worth milestone. Also use when the user mentions "what am I worth," "assets vs debts," "balance sheet," "financial snapshot," or "am I building wealth."
-metadata:
-  version: 1.0.0
----
-
-# Net Worth Tracker
-
-You are a Personal Financial Advisor. Your goal is to give the user a clear, honest snapshot of their total financial position and a trend they can track monthly.
-
-## Initial Assessment
-
-1. **Asset Inventory**
-   - Cash and bank accounts.
-   - Investment and retirement accounts (current market value).
-   - Real estate (current market value, not purchase price).
-   - Vehicles, business equity, other valuables.
-
-2. **Liability Inventory**
-   - Mortgage balance.
-   - Car loans, student loans, personal loans.
-   - Credit card balances.
-   - Any other debt.
-
-3. **Tracking Cadence**
-   - First-time snapshot or comparison to a previous period?
-   - Are previous-period values available?
-
----
-
-## Calculation Framework
-
-### Net Worth Formula
-`Net Worth = Total Assets − Total Liabilities`
-
-### Asset Allocation
-Break assets into:
-- **Liquid** (cash, chequing, savings, money market) — accessible within days.
-- **Investment** (brokerage, retirement accounts) — market-value based.
-- **Illiquid** (real estate, business equity, collectibles) — estimated market value.
-
-### Key Ratios
-- **Debt-to-Asset Ratio** = Total Liabilities / Total Assets (lower is better; <0.5 is healthy).
-- **Liquid Asset Ratio** = Liquid Assets / Total Assets (target ≥ 10% for emergency resilience).
-- **Investment Asset Ratio** = Investment Assets / Total Assets (proxy for wealth-building progress).
-
----
-
-## Technical Steps
-
-### 1. Sum All Assets by Category
-Use current market values, not book or purchase values.
-
-### 2. Sum All Liabilities
-Use outstanding balances, not original loan amounts.
-
-### 3. Calculate Net Worth and Ratios
-Compute net worth, debt-to-asset ratio, and category percentages.
-
-### 4. Period-over-Period Change
-If prior snapshot exists: compute dollar change, percentage change, and which asset/liability drove the change most.
-
----
-
-## Output Format
-
-**Net Worth Statement**
-- Assets table (category, amount, % of total).
-- Liabilities table (category, amount, % of total).
-- Net worth and key ratios.
-
-**Trend Analysis** (if prior period available)
-- Net worth change, primary driver of change.
-
-**Health Assessment**
-- Commentary on debt-to-asset ratio, liquidity, and investment allocation.
-
-**Next Milestone**
-- Nearest round-number net worth target and months to reach it at the current savings rate.
-
----
-
-## Scripts
-- [calculate.py](./scripts/calculate.py): Deterministic functions for this skill's core computations. Run `python3 scripts/calculate.py` to self-test; import the functions instead of doing mental math.
-
----
-
-## References
-- [Net Worth Benchmarks](./references/net-worth-benchmarks.md): Age-based net worth benchmarks and wealth percentiles.
-- [Asset Valuation Guide](./references/asset-valuation.md): How to value illiquid assets (real estate, business equity, collectibles).
-
----
-
-## Related Skills
-- **personal-budgeting**: The monthly savings line in the budget is the primary driver of net worth growth.
-- **debt-payoff**: Liability reduction is the fastest path to net worth improvement for debt-heavy individuals.
-- **retirement-planning**: Retirement accounts are typically the largest investment asset — ensure they are on track.

package/selected-skills/financeskills/skills/net-worth-tracker/references/asset-valuation.md

@@ -1,40 +0,0 @@
-# Asset Valuation Guide
-
-How to assign realistic values to assets for a personal balance sheet.
-
-## Liquid Assets (Easy — Use Account Balances)
-- Chequing, savings, money market: use the current account balance.
-- Cash on hand: include if material.
-
-## Investment Accounts
-- Brokerage and retirement accounts: use the current market value shown on the statement.
-- Do NOT use cost basis (what you paid) — use market value.
-
-## Real Estate
-Use current market value, not purchase price or mortgage balance.
-Estimation methods (in order of reliability):
-1. Recent appraisal (most accurate).
-2. Automated valuation models (Zillow, Redfin estimate) — reasonable proxy, ±10–15%.
-3. Comparable sales (comps) from a local real estate agent.
-
-Subtract nothing for mortgage here — that is captured on the liabilities side.
-
-## Vehicles
-- Use Kelley Blue Book or similar guide for current private-party value.
-- Depreciation is fast in the first 3 years; update annually.
-
-## Business Equity
-Difficult to value without a formal appraisal. Common shortcuts:
-- **Revenue multiple**: 0.5–1× annual revenue for service businesses.
-- **Earnings multiple**: 3–5× EBITDA for stable small businesses.
-- Use conservatively and note the uncertainty.
-
-## Collectibles & Valuables
-- Use recent auction results or certified appraisals.
-- Only include if you would realistically sell.
-- Do not include sentimental items unless they have clear market value.
-
-## What NOT to Include
-- Future earnings or bonuses (not yet received).
-- Value of pension promises (present value is complex — note separately).
-- Life insurance death benefit (only include cash surrender value if applicable).

package/selected-skills/financeskills/skills/net-worth-tracker/references/net-worth-benchmarks.md

@@ -1,33 +0,0 @@
-# Net Worth Benchmarks
-
-## The Millionaire Next Door Formula
-From Stanley & Danko (1996), a rule of thumb for expected net worth at a given age:
-
-`Expected Net Worth = Age × Annual Pre-Tax Income / 10`
-
-- **Prodigious Accumulator of Wealth (PAW)**: Net worth > 2× expected.
-- **Average Accumulator of Wealth (AAW)**: Net worth ≈ expected.
-- **Under Accumulator of Wealth (UAW)**: Net worth < 0.5× expected.
-
-## US Net Worth Percentiles by Age (Federal Reserve SCF, 2022)
-
-| Age Group | Median NW | 75th Percentile | 90th Percentile |
-|---|---|---|---|
-| Under 35 | $39,000 | $136,000 | $321,000 |
-| 35–44 | $135,000 | $404,000 | $854,000 |
-| 45–54 | $247,000 | $704,000 | $1,500,000 |
-| 55–64 | $365,000 | $1,000,000 | $2,400,000 |
-| 65–74 | $410,000 | $1,200,000 | $2,900,000 |
-
-## Healthy Ratio Targets
-
-| Ratio | Healthy Range |
-|---|---|
-| Debt-to-Asset Ratio | < 50% (ideally < 30%) |
-| Liquid Asset Ratio | ≥ 10% of total assets |
-| Investment Asset Ratio | ≥ 40% of total assets (by mid-career) |
-| Emergency Fund | 3–6 months of expenses in liquid form |
-
-## Sources
-- Stanley, T. J., & Danko, W. D. (1996). *The Millionaire Next Door*. Longstreet Press.
-- Federal Reserve Board (2022). *Survey of Consumer Finances*.

package/selected-skills/financeskills/skills/nlp-earnings-sentiment/EXAMPLE.md

@@ -1,17 +0,0 @@
-# Worked Example - nlp-earnings-sentiment
-
-## Ask
-
-> Analyze the sentiment of this earnings call transcript. Management keeps using words like 'challenging' and 'headwinds' but says the outlook is 'positive'.
-
-## What a correct response contains
-
-Should identify a potential 'Tone Shift' or mismatch between specific negative descriptors and general positive outlook. Should focus on the Q&A section for reveal. Should mention uncertainty mapping (tracking 'challenging', 'headwinds'). Should provide a Sentiment Scorecard.
-
-## File-driven variant
-
-With fixture(s) `evals/files/earnings_call_excerpt.txt`:
-
-> Analyze the attached earnings-call excerpt (evals/files/earnings_call_excerpt.txt): overall tone, the specific hedging/uncertainty language, the quantitative signals that cut against the positive headline, and what a sentiment model should weight most.
-
-Expected: Surface tone positive (record OCF, 18% growth, guidance reiterated) but hedged: 'prudent to assume', 'admittedly uncertain', 'yet'. Negative quant signals: contract assets growing faster than revenue, DSO +6 days, inventory build, margin low-end cut 50bps, deal discounting. Net: cautiously positive with deteriorating quality-of-revenue markers.

package/selected-skills/financeskills/skills/nlp-earnings-sentiment/SKILL.md

@@ -1,77 +0,0 @@
----
-name: nlp-earnings-sentiment
-description: When the user wants to analyze earnings call transcripts or financial news for sentiment shifts. Also use when the user mentions "analyzing earnings calls," "management tone," "sentiment score," "Q&A analysis," "detecting bullishness," or "transcripts NLP."
-metadata:
-  version: 1.0.0
----
-
-# NLP Earnings Sentiment
-
-You are an AI Quant Analyst. Your goal is to use Natural Language Processing to detect subtle shifts in management confidence that quantitative data might miss.
-
-## Initial Assessment
-
-1. **Source Material**
-   - Do we have the full transcript of the earnings call?
-   - Do we have transcripts from the previous 4 quarters for comparison?
-
-2. **Target Metrics**
-   - Are we looking at the "Prepared Remarks" or the "Q&A Section"? (Q&A is often more revealing).
-
----
-
-## NLP Framework
-
-### Technical Limitation
-**Context Matters.**
-Generic sentiment libraries (like VADER) often fail in finance because words like "tax" or "cost" are neutral/standard but labeled as negative. This skill uses **FinBERT** or custom financial lexicons.
-
-### Priority Order
-1. **Linguistic Pre-processing** (Cleaning transcripts, removing legal disclaimers).
-2. **Sentiment Scoring** (Applying financial-specific NLP models).
-3. **Comparative Analysis** (Measuring "Tone Shift" vs. previous quarters).
-4. **Keyword Extraction** (Identifying what management is talking about *more* or *less*).
-
----
-
-## Technical NLP Steps
-
-### 1. Tone Shift Detection
-- Calculate the ratio of positive to negative words in the Q&A section. 
-- Compare this ratio to the historical average for this management team.
-
-### 2. Uncertainty Mapping
-- Track the frequency of words like "uncertain," "volatile," "might," and "assume." 
-- A spike in these words often precedes a stock price correction.
-
-### 3. Management vs. Analyst Sentiment
-- Compare the sentiment of management's answers to the sentiment of the analysts' questions to detect friction.
-
----
-
-## Output Format
-
-### Sentiment Analysis Report Structure
-
-**Sentiment Scorecard**
-- **Overall Score**: (e.g., +0.75 - Very Bullish).
-- **Tone Shift**: (e.g., -15% decline from last quarter).
-
-**Key Findings**
-- Top 3 "Stress Points" discussed in the Q&A.
-- Areas where management was unusually vague or evasive.
-
-**Quantitative Overlay**
-- Correlation between sentiment shifts and stock price movement in previous quarters.
-
----
-
-## References
-- [FinBERT Overview](./references/finbert-guide.md): Why specialized models matter.
-- [Tone Analysis Basics](./references/linguistic-finance.md): Detecting management evasiveness.
-
----
-
-## Related Skills
-- **investment-analysis**: To add qualitative context to a valuation.
-- **financial-analysis**: To see if the sentiment aligns with the hard numbers.

package/selected-skills/financeskills/skills/nlp-earnings-sentiment/references/finbert-guide.md

@@ -1,26 +0,0 @@
-# FinBERT and Financial NLP Models
-
-## Why Domain Models
-General sentiment models misread finance: "liability decreased" is positive; "beat expectations despite headwinds" is positive; "in line with guidance" is neutral-positive. Finance-tuned models (FinBERT variants, e.g., ProsusAI/finbert, yiyanghkust/finbert-tone) are trained on analyst reports and earnings text.
-
-## Usage Pattern
-```python
-from transformers import pipeline
-clf = pipeline("text-classification", model="yiyanghkust/finbert-tone")
-scores = clf(sentences)   # labels: Positive / Negative / Neutral
-```
-- Sentence-level scoring, then aggregate: `net tone = (pos − neg) / total sentences`.
-- Chunk transcripts ≤ 512 tokens; split on sentence boundaries, never mid-sentence.
-
-## Earnings Call Structure Matters
-- **Prepared remarks**: scripted, uniformly positive — low signal. Compare vs. the company's own historical baseline, not absolute tone.
-- **Q&A section**: highest signal. Analyze separately. Evasive answers (deflection, non-answers, "we don't guide on that") and question-answer tone gaps are stronger predictors than raw sentiment.
-- Track **tone delta vs. prior quarters**, not levels.
-
-## Beyond Sentiment
-- Hedging density: counts of "approximately", "we believe", "subject to" per 100 words.
-- Numeric specificity: ratio of quantified statements to total claims (specificity drops before bad news).
-- Topic shift: new risk topics vs. prior call (embedding distance per section).
-
-## Validation
-Backtest tone deltas against post-call abnormal returns or subsequent guidance revisions before trusting any signal. Report correlation, not causation.

package/selected-skills/financeskills/skills/nlp-earnings-sentiment/references/linguistic-finance.md

@@ -1,23 +0,0 @@
-# Linguistic Markers in Financial Disclosure
-
-## Loughran-McDonald Word Lists (the finance standard)
-General-purpose lexicons (Harvard-IV) misclassify ~75% of finance "negative" words (e.g., "tax", "cost", "liability" are routine). Use L-M categories:
-- **Negative** (loss, impairment, litigation, restated), **Positive** (achieve, improve, strong), **Uncertainty** (approximately, contingent, may), **Litigious** (claimant, plaintiff), **Weak/Strong modal** (could/might vs. will/must), **Constraining** (covenant, restrict).
-
-Metric: `category density = category word count / total words`, compared against the same company's history and sector peers.
-
-## Documented Red-Flag Patterns (research-backed)
-1. **Rising uncertainty + weak modal density** ahead of negative revisions.
-2. **Fog/complexity increase**: longer sentences, more passive voice in 10-K MD&A precede underperformance (Li 2008).
-3. **Pronoun shifts**: "I/we" ownership language dropping in favor of impersonal constructions during deteriorating quarters.
-4. **Disclosure length spikes** in risk factors and critical accounting estimates sections.
-5. **Non-answers in Q&A**: answer length ≪ question complexity; topic deflection.
-6. **Scripted Q&A**: unusually fluent answers to hostile questions (pre-seeded questions).
-
-## Quantitative Measures
-- Gunning Fog index on MD&A year-over-year.
-- Cosine similarity of consecutive 10-K risk sections: a sudden DROP means new risks added — read the diff.
-- Negation handling: "not expecting growth" — apply 3-word negation windows when using lexicons.
-
-## Caveats
-Language signals are weak individually; combine ≥ 3 markers and always tie to the numbers (does tone diverge from reported results? divergence IS the signal).

package/selected-skills/financeskills/skills/oil-gas-valuation/EXAMPLE.md

@@ -1,21 +0,0 @@
-# Worked Example - oil-gas-valuation
-
-## Ask
-
-> We have 1 million barrels of proved reserves. Lifting costs are $15/bbl. Current oil price is $80/bbl. What's the PV-10 assuming a 10-year production life?
-
-## What a correct response contains
-
-Should calculate annual production (100k bbl/yr). Should calculate annual net cash flow ($80 - $15 = $65/bbl * 100k = $6.5M/yr). Should discount the 10-year annuity at 10% to find PV-10 (approx. $39.9M). Should provide an Oil & Gas Valuation Memo.
-
-## File-driven variant
-
-With fixture(s) `evals/files/field_parameters.csv`:
-
-> Value the field described in the attached parameters (evals/files/field_parameters.csv): build the 10-year exponential decline profile, compute the per-barrel netback, and the PV-10.
-
-Expected: Netback $41.50/bbl; year-10 production 387,420 bbl; PV-10 $179,605,644.
-
-## Compute, don't estimate
-
-All figures above come from [`scripts/calculate.py`](./scripts/calculate.py) - import its functions rather than doing arithmetic in prose.

package/selected-skills/financeskills/skills/oil-gas-valuation/SKILL.md

@@ -1,86 +0,0 @@
----
-name: oil-gas-valuation
-description: When the user wants to value oil and gas reserves or perform upstream financial analysis. Also use when the user mentions "PV-10," "proven reserves (1P)," "probable reserves (2P)," "lifting costs," "decline curve analysis," or "upstream valuation."
-metadata:
-  version: 1.0.0
----
-
-# Oil & Gas Reserve Valuation
-
-You are an Upstream Energy Analyst. Your goal is to estimate the economic value of sub-surface hydrocarbons based on geological certainty and current market pricing.
-
-## Initial Assessment
-
-1. **Reserve Categorization**
-   - **Proved (1P)**: 90% probability of recovery.
-   - **Probable (2P)**: 50% probability of recovery.
-   - **Possible (3P)**: 10% probability of recovery.
-
-2. **Cost Structure**
-   - **Lifting Costs**: Direct costs to bring oil to the surface.
-   - **Finding & Development (F&D) Costs**: Costs to discover and build infrastructure.
-
-3. **Pricing Assumptions**
-   - Standardized pricing (e.g., SEC 12-month average) or forward curve?
-
----
-
-## Valuation Framework
-
-### The PV-10 Calculation
-`PV-10 = Σ [Net Cash Flow_t / (1.10)^t]`
-- Net Cash Flow = Revenue - Production Taxes - Lifting Costs - Development CapEx.
-- Note: PV-10 is pre-tax; Standardized Measure (SM) is post-tax.
-
-### Priority Order
-1. **Production Forecasting** (Using decline curves).
-2. **Revenue Modeling** (Price x Production).
-3. **OpEx & CapEx Deduction** (Calculating net cash flow).
-4. **Discounting** (Applying the standard 10% rate).
-5. **Reserve Life Calculation** (Reserves / Annual Production).
-
----
-
-## Technical Analysis Steps
-
-### 1. Decline Curve Analysis (DCA)
-- Model the natural drop in production over time (Exponential, Hyperbolic, or Harmonic).
-
-### 2. SEC Standardized Measure
-- Apply the mandatory SEC rules for reporting reserve value in financial statements (10-K).
-
----
-
-## Output Format
-
-### Oil & Gas Valuation Memo
-
-**Reserve Summary**
-- 1P, 2P, and 3P quantities in BOE (Barrels of Oil Equivalent).
-- Reserve Life Index (RLI).
-
-**Financial Metrics**
-- **PV-10 Value**: $X.
-- **Lifting Cost per BOE**: $Y.
-- **F&D Cost per BOE**: $Z.
-
-**Sensitivity**
-- Table showing PV-10 sensitivity to +/- $10 change in oil price.
-
----
-
-## Scripts
-- [calculate.py](./scripts/calculate.py): Deterministic functions for this skill's core computations. Run `python3 scripts/calculate.py` to self-test; import the functions instead of doing mental math.
-
----
-
-## References
-- [SPE Reserve Definitions](./references/spe-standards.md): Industry definitions for 1P/2P/3P.
-- [PV-10 vs. Standardized Measure](./references/sec-reporting.md): Difference between pre-tax and post-tax valuation.
-
----
-
-## Related Skills
-- **aro-computation**: For the decommissioning of wells and platforms.
-- **investment-analysis**: For valuing integrated oil companies.
-- **financial-analysis**: For analyzing the cash flow of E&P firms.

package/selected-skills/financeskills/skills/oil-gas-valuation/references/sec-reporting.md

@@ -1,22 +0,0 @@
-# SEC Oil & Gas Reporting Requirements
-
-## Reserve Categories (SEC Modernized Rules, Reg S-X 4-10)
-- **Proved (1P)**: reasonable certainty (≥ 90% for probabilistic); economically producible under EXISTING economic conditions. Subcategories: PDP (developed producing), PDNP (developed non-producing), PUD (undeveloped).
-- **PUD 5-year rule**: undeveloped locations must have a development plan with drilling scheduled within 5 years of initial booking, or de-book.
-- Probable (2P incremental, ≥ 50%) and possible (3P incremental, ≥ 10%) MAY be disclosed but not required.
-
-## SEC Pricing Convention
-12-month average of first-day-of-month benchmark prices, held FLAT for the life of reserves (no escalation), adjusted for quality/transport differentials. This is the defining difference from bank/NPV decks which use forward strips.
-
-## Standardized Measure (ASC 932)
-PV of future net revenues from proved reserves: SEC prices × production schedule − development costs − production costs − income taxes, all discounted at a MANDATED 10% — the "standardized measure." **PV-10** is the non-GAAP pre-tax cousin (reconcile when disclosed).
-
-## Required Disclosures (annual)
-- Reserve quantities rollforward by product and geography: revisions, extensions/discoveries, improved recovery, purchases/sales, production.
-- Capitalized costs, costs incurred (acquisition/exploration/development), results of operations for O&G activities.
-- Standardized measure rollforward.
-- Third-party reserve engineer involvement and internal qualified person credentials.
-
-## Accounting Method Interplay
-- Successful efforts vs. full cost: ceiling test (full cost) uses the SEC price deck — price collapses trigger mechanical impairments.
-- Nigeria note: NUPRC reserve reporting and local content rules sit alongside; reconcile SEC-basis vs. PRMS-basis (SPE) bookings — the categories do NOT map one-to-one (see spe-standards.md).

package/selected-skills/financeskills/skills/oil-gas-valuation/references/spe-standards.md

@@ -1,25 +0,0 @@
-# SPE Petroleum Resources Management System (PRMS)
-
-The industry-standard framework for classifying and estimating petroleum resources.
-
-## 🏛️ Classification Categories
-
-### 1. Proved Reserves (1P)
-- **P90**: There is at least a 90% probability that the quantities actually recovered will equal or exceed the estimate.
-- **Criteria**: Based on geological and engineering data; must be economically producible under existing economic conditions.
-
-### 2. Probable Reserves (2P)
-- **P50**: The sum of Proved and Probable reserves where there is at least a 50% probability that the quantities actually recovered will equal or exceed the estimate.
-
-### 3. Possible Reserves (3P)
-- **P10**: The sum of Proved, Probable, and Possible reserves where there is at least a 10% probability that the quantities actually recovered will equal or exceed the estimate.
-
----
-
-## 🔍 Key Definitions
-- **BOE (Barrel of Oil Equivalent)**: Used to combine oil and gas into a single measure based on energy content (typically 6 Mcf of gas = 1 Bbl of oil).
-- **RLI (Reserve Life Index)**: Total Reserves / Annual Production.
-
-## 🔗 Sources
-- [SPE Official PRMS Guide](https://www.spe.org/en/industry/reserves/)
-- [WPC: Petroleum Resources Management System](https://www.world-petroleum.org/)