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|
| Free Cash Flow (||||||||||
) for each year is defined as (the year index "I" is omitted):FCF | = ( | ||||||||||
Sales = q1 · Priceincome | |||||||||||
Priceincome = Taxmining · Pricemarket | |||||||||||
COGS = qO↑ · CO + qG↑ · CG↑ + qW↑ · CW↑ + qW↓ · CW↓ | |||||||||||
Sales = q1 · Priceincome | Priceincome = Taxmining · Pricemarket |
where
The link between the above FCF algorithm and the general principals of P&L is given below:
FCF = OCF + CAPEX |
OCF = Net Income = EBT · ( 1 − IncomeTaxRate) |
EBT = EBIT − Interest |
EBIT = Sales − COGS − OPEX |
See also
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Petroleum Industry / Upstream / Production / Field Development Plan
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