Reserves to Production Ratio

Filed Under »
Dictionary Says

Definition of 'Reserves to Production Ratio'

A ratio indicating the remaining lifespan of a natural resource. This ratio is expressed in terms of years, and is used in forecasting the future availability of a resource to determine project life, income, employment etc. While applicable to all natural resources, it is primarily used in the oil and gas industry.

RPR = amount of known resource
            amount used per year
Investopedia Says

Investopedia explains 'Reserves to Production Ratio'

Usage of a resource per year can be calculated, or estimated, to quite an accurate number. However, reserve quantity of a resource can only be estimated. It is imperative for investors to take into account the possibility of new technology, new discoveries or misevaluation by involved parties.
Search results for

'Reserves to Production Ratio'

  • Natural Gas Industry: An Investment Guide

    http://www.investopedia.com/articles/stocks/10/investing-in-natural-gas-guide.asp
    ... Check out Accounting For Differences In Oil And Gas Accounting.) Reserves to Production
    Ratio The reserves to production ratio is a measure of the length of ...

  • Oil Companies With High Reserve-Replacement Ratios

    http://stocks.investopedia.com/stock-analysis/2009/Oil-Companies-With-High-Reserve-Replacement-Ratios-CRZO-UPL-XOM-GDP1012.aspx
    ... Back-Proved Reserves Many exploration and production companies present the reserve
    replacement ratio by adding back-proved reserves that were removed from this ...

  • Say Hello To LRR Energy

    http://stocks.investopedia.com/stock-analysis/2011/Say-Hello-To-LRR-Energy-LRP-CHK-CHKR-NDRO1117.aspx
    ... Gulf Coast. The company's reserves in the Gulf Coast have the shortest reserves
    to production ratio, at approximately eight years. ...

  • Hess Corporation Continues Expansion

    http://stocks.investopedia.com/stock-analysis/2010/Hess-Corporation-Continues-Expansion-HES0128.aspx
    ... The company has made a major effort to boost its reserves to production ratio over
    the last five years, increasing it from 7.4 years in 2003 to 10.1 years in ...

  • 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
    ... see Unearth Profits In Oil Exploration And Production.) Enterprise Value/Proven +
    Probable Reserves: EV/2P ... Generally the EV/2P ratio should not be used in ...

  • New Reserve Rules Expand PUDs

    http://stocks.investopedia.com/stock-analysis/2010/New-Reserve-Rules-Expand-PUDs-UPL-HK-KWK-SWN0222.aspx
    ... Rule While this seems like a higher ratio than other ... Line An updated set of rules
    for booking reserves in the exploration and production industry was ...

  • Understanding Oil Industry Terminology

    http://www.investopedia.com/articles/stocks/09/oil-drillers-cracked-up.asp
    ... meaning the ability to reach the reserves may require ... run, companies often experience
    mini production cycles when ... However this ratio is not always reliable in ...

  • QEP Resources Is Born

    http://stocks.investopedia.com/stock-analysis/2010/QEP-Resources-Is-Born-STR-QEP0630.aspx
    ... the new company will have 50% of its proved reserves. ... a total debt to book capital
    ratio of 28 ... have another high growth exploration and production company to ...

  • 4 Energy Stocks With Little Or No Debt

    http://stocks.investopedia.com/stock-analysis/2011/4-Energy-Stocks-With-Little-Or-No-Debt-DVN-EPM-UNT-DRQ0906.aspx
    ... in Texas and Louisiana and has the majority of its proved reserves and production
    from an ... than many of its peers, with a debt-to-capitalization ratio of 12 ...

  • 4 Low Debt Energy Stocks To Watch

    http://stocks.investopedia.com/stock-analysis/2011/4-Low-Debt-Energy-Stocks-To-Watch-DVN-EPM-UNT-DRQ1219.aspx
    ... in Texas and Louisiana and has the majority of its proved reserves and production
    from an ... than many of its peers, with a debt-to-capitalization ratio of 12 ...

Related Articles

Partner Links