Price Per Flowing Barrel

Filed Under » ,
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.
Search results for

'Price Per Flowing Barrel'

  • Digging Into Cenovus Energy

    http://stocks.investopedia.com/stock-analysis/2011/Digging-Into-Cenovus-Energy-CVE-SU-CNQ-IMO1019.aspx
    ... Also referred to as price per flowing barrel. ... Its price per flowing barrel is the
    highest at $133,960 per barrel, an 11% premium to Suncor at $120,500 per boe. ...

  • 5 Common Trading Multiples Used In Oil And Gas Valuation

    http://www.investopedia.com/articles/basics/11/common-multiples-used-in-oil-and-gas-valuation.asp
    ... reading, see Relative Valuation Of Stocks Can Be A Trap.) Enterprise Value/Daily
    Production: EV/BOE/D Also referred to as price per flowing barrel, this is a ...

  • Pipelines Provide Portfolio Energy

    http://stocks.investopedia.com/stock-analysis/2009/Pipelines-Provide-Portfolio-Energy-TRP-ENB-TPP-MMP-NS0406.aspx
    ... profit is based on the volume flowing through their ... yield the highest of any listed,
    paying $2.92 per share or ... companies that can profit from oil at any price. ...

Related Articles

Partner Links