Price Per Flowing Barrel

Dictionary Says

Definition of 'Price Per Flowing Barrel'


A metric used to determine the value of a oil and gas company. Price per flowing barrel is calculated as:

(Market Cap + Debt - Cash) / Production Barrels Per Day

For example, an oil company with a market capitalization of $20 billion, debt of $500 million and $100 million in cash that produces 600,000 BPD will have a price per flowing barrel of $34,000.

Investopedia Says

Investopedia explains 'Price Per Flowing Barrel'


Price per flowing barrel does not take into account the potential production from undeveloped fields. To get a better picture of an oil companies financial health, investors should also determine the cost of developing new fields.

As a comparative metric, price per flowing barrel is typically more useful when comparing similar types of oil from similar types of fields.

comments powered by Disqus
Hot Definitions
  1. Securitization

    The process through which an issuer creates a financial instrument by combining other financial assets and then marketing different tiers of the repackaged instruments to investors.
  2. Economic Forecasting

    The process of attempting to predict the future condition of the economy. This involves the use of statistical models utilizing variables sometimes called indicators.
  3. Chicago Mercantile Exchange - CME

    The world's second-largest exchange for futures and options on futures and the largest in the U.S. Trading involves mostly futures on interest rates, currency, equities, stock indices and agricultural products.
  4. Private Equity

    Equity capital that is not quoted on a public exchange. Private equity consists of investors and funds that make investments directly into private companies or conduct buyouts of public companies that result in a delisting of public equity.
  5. Valuation

    The process of determining the current worth of an asset or company. There are many techniques that can be used to determine value, some are subjective and others are objective.
  6. Valuation

    The process of determining the current worth of an asset or company. There are many techniques that can be used to determine value, some are subjective and others are objective.
Trading Center