From Scotiabank research. Broad range within each play. Note the...

First 2 Last

Share
Profile

Follow
cmonaussie

11,261 Posts.

3924

11/05/15

08:23

Post #: 15252050
Share
Originally posted by cmonaussie ↑

Published by Richard Zeits
http://seekingalpha.com/article/316...icky-concept?isDirectRoadblock=false&uprof=45

"The risk of confusion can be illustrated by looking at the following three definitions of breakeven oil prices:

Well-level breakeven price: The minimum price of oil that renders a new well in the play NPV-neutral (i.e., by drilling the well, the operator can expect a return on investment at least equal to its cost of capital);

Company-level breakeven price: The price of oil that allows the operator to grow production at a minimally acceptable growth rate (for example, mid- to high-single digits) without increasing its debt;

Industry-level breakeven price: The price of oil that allows the entire industry to sustain its market share."

He then used CLR's last reported metrics for illustration, as they had some great slides in their report. He references a slide that shows the "breakeven" by their different plays. Followed by a great discussion on EBITDAX and of course the Cash Margin (not broken out by different plays but noting the location advantage/disadvantage).

Worth a read IMHO.

Expand

From Scotiabank research. Broad range within each play. Note the excluded costs.
SSN Price at posting: 0.8¢ Sentiment: None Disclosure: Not Held
2 Upvote

0 Great analysis

Reply

Top Stories

Tuesday's HotCopper trends: Sayona intercepts, Bowen Coking crisis | July 15

AII

Inside the depths of Panasqueira: A legacy carved in rock

ASX Market Close: Tariff fatigue truly evident; RBA eftpos proposal sinks Tyro

Listen: HotCopper Wire Podcast 017 – RBA holds the toppings

WIN

'Incorrect datasets': Old irony sets WIN Metals up for golden opportunity at Emjay

First 2 Last

Add to My Watchlist

What is My Watchlist?

A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.

From Scotiabank research. Broad range within each play. Note the...

Top Stories

Tuesday's HotCopper trends: Sayona intercepts, Bowen Coking crisis | July 15

Inside the depths of Panasqueira: A legacy carved in rock

ASX Market Close: Tariff fatigue truly evident; RBA eftpos proposal sinks Tyro

Listen: HotCopper Wire Podcast 017 – RBA holds the toppings

'Incorrect datasets': Old irony sets WIN Metals up for golden opportunity at Emjay

Featured News