Pro Forma Cash Flow Model

What is a Pro Forma Cash Flow Model?

A pro forma is a time-based projection of a project's financial performance. It provides a structured view of key financial metrics—such as revenues, operating expenses, capital expenditures, taxes, and net cash flows—across the full project lifecycle, from development and construction through operations.

The pro forma supports three core objectives:

• Valuation: Projects expected cash flows and return metrics such as IRR, NPV, and payback period.

• Risk Assessment: Analyzes how projected cash flows respond to changes in key inputs such as production, pricing, operating costs, and downtime—helping quantify exposure to technical, market, and operational risk.

• Project Planning: Supports planning around reserve levels, capital deployment, and cash flow timing.

In addition to the full time-series output, the Pro Forma View allows select metrics—such as Revenues, EBITDA, and Free Cash Flow—to be surfaced in a summary cash flow section for quick reference. Key return metrics, including IRR and payback period, can also be displayed as KPI cards, providing a clear snapshot of project performance at a glance.

View Configuration

The Pro Forma View is created using data ingested from the client’s financial model. During onboarding, a Forward-Deployed Engineer (FDE) works closely with the client to identify relevant terms and map them into the structure of the view. This ensures the outputs reflect the specific structure, assumptions, and terminology of the original model while aligning with a standardized, interpretable format. ln this version of the alpha release, configuration is handled internally by the Aire Labs team.