Production Per Share

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DEFINITION of 'Production Per Share'

A mathematical ratio used in the oil and gas industry to refer to the number of barrels of oil per day or cubic feet of gas per day divided by the total number of shares of the producing company. The production per share ratio is one of several measures for determining the profitability of an energy-producing company.

INVESTOPEDIA EXPLAINS 'Production Per Share'

The higher the production per share, the more profitable the company is. A high ratio is therefore more attractive to investors seeking profitable energy stocks. This ratio can also be improved through the efficient extraction and production of oil.

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