PV-10 and upstream NAV
Proved developed reserves valued, net debt, per share.
By Surojit Chakraverti, founder of L3VLUP and an investor running a long-short healthcare and technology equities strategy.
On this subject: pv-10 and upstream nav.Updated 5 November 2026
Part of project finance and infrastructure models, with the models, labs and guides around it.
What it does
A producer valued on what is in the ground. The wells already drilled are run off to the end of their lives at a price deck: revenue less royalties, production taxes and field costs, then the cost of plugging and abandoning them. Discounted before tax at a fixed 10% this is PV-10, the figure every producer reports for comparison. After tax, with the tax basis depleted on units of production, and at the company’s own cost of capital, less net debt and per share, it is the net asset value of the proved developed reserves, the floor of what the company is worth.
Where it lives
The same schedule in each model that carries it, with the rows to open. Open a model in the browser, go to the sheet, and click the lines.
- Assumptions, rows 67–69: Reserves discount rate (PV-10), Discount rate for the NAV (WACC), Plugging and abandonment of the PD wells, end of FY15
- NAV, rows 6–10: Proved developed production, Oil price realised, NGL price realised, Gas price realised…
- NAV, rows 13–23: Revenue, Less: royalties, Less: production and severance taxes, Less: lease operating expense…
- NAV, rows 26–33: PV-10, pre-tax, After-tax value at 10%, After-tax value at the WACC, Less: net debt, FY0…
What a reviewer looks for
- PV-10 quoted as if it were after tax.
- G&A or undeveloped locations inside a proved developed NAV.
- Abandonment costs left out because they fall after the forecast.