Generally anywhere you have large displacements at attachments, you'll want to qualify the stresses in the attachment. Flange leakage calculations are deemed by many to be overly conservative, so that's up to the end user.
However, assuming that it is a high pressure well, you might be using API flanges, and the capacities of those flanges are listed within API 6AF, 6AF2, etc, in which case I would definitely encourage analysis based on this.
With that said, this model looks incomplete to me. Simply applying a vertical displacement will allow the pipe to act like a cantilever, and not a pipe fastened to a wellhead.
If you want to perform flange checks and wellhead nozzle checks, you'll actually need to model that equipment and apply the displacement to the equipment, rather than the pipe.