Category: Financial / Legal / Administrative / Political

The price a willing buyer would pay a willing seller for a given asset, provided both parties are unrelated, know the relevant facts and are under no compulsion to participate in the transaction Given these conditions, fair market value should be an accurate representation of an asset’s worth.

Cash flow from operations less non acquisition capital

Revenue less lease operating expenses, production taxes, transportation and DD&A

Revenue less lease operation expenses, production taxes and transportation

Revenue less capital, lease operating expenses, production taxes, transportation and income taxes