Stress Test Simulations

• Automated Multi-Metric Stress Testing
• Equip’s algorithm is designed to quickly and easily stress test one or multiple financial metrics simultaneously, taking a variety of price scenarios into account. This automation eliminates the manual effort and complexity associated with looping price changes into traditional spreadsheet models.
• Historical Price Curve Analysis
• Equip’s algorithms analyze historical price curves to inform stress test scenarios, ensuring that the simulations are grounded in real-world data. This feature enhances the accuracy and relevance of the stress test results.
• Regulatory Compliance
• Equip incorporates the guidelines from the OCC oil & gas handbook, providing producers with critical insights into banking regulations. This integration ensures that stress testing aligns with industry standards, offering transparency and compliance.
• Precision Loop Convergence
• Equip’s algorithm is engineered to converge on a price with precision and accuracy, effectively managing calculation loops and knowing when to exit. This capability ensures that stress tests are accurate and reliable, avoiding the pitfalls of endless calculation loops common in spreadsheet-based models.
• Portfolio-Level Stress Testing
• Equip allows for stress testing at the portfolio level, enabling the simultaneous evaluation of multiple clients to identify those most at risk of default. This feature is essential for lenders and producers managing large portfolios, providing a comprehensive view of financial health.
• Scalable Stress Testing with AWS
• Equip leverages multiple AWS servers to distribute the stress test workload, allowing for quick and efficient calculations. This scalability ensures that even large portfolios can be stress tested in a matter of minutes, regardless of the age or capacity of local hardware.
• Rapid Execution
• The stress test algorithm can run in approximately 10 seconds once all client data (including databases, hedge books, G&A, etc.) is loaded into Equip, , allowing a portfolio with roughly 100 clients to be evaluated in minutes. This speed is unmatched in traditional methods, providing timely insights.
• Limiting Factor Analysis
• Equip identifies and displays the limiting factor in the stress test on a client-by-client basis. This analysis allows for detailed grouping and examination, providing you with a clear understanding of potential weaknesses in your portfolios.

• Time and Efficiency
• Equip drastically reduces the time and effort required to perform stress tests, allowing you to focus on analysis rather than manual data manipulation. This efficiency is particularly valuable in volatile markets where timely insights are crucial.
• Accuracy and Reliability
• Equip’s integration of historical data, regulatory guidelines, and advanced algorithms ensures that stress tests are both accurate and reliable. This accuracy is essential for making informed decisions under uncertain market conditions.
• Scalability and Flexibility
• Equip’s cloud-based infrastructure enables the stress testing of large portfolios, offering scalability that traditional methods cannot match. This flexibility allows you to adjust stress tests as needed, accommodating changing market conditions and portfolio compositions.

Equip’s Stress Test Simulation module transforms the way financial professionals in the oil and gas industry approach risk management. By automating complex processes and providing rapid, accurate insights, Equip empowers you to navigate financial volatility with confidence. Equip your team with the tools they need to assess and manage risk effectively, ensuring financial resilience in any market condition.