Part of Field Development Planning and Production Performance Monitoring based on NPV and EUR.
|
| ||||
Free Cash Flow (FCF) for each year is defined as (the year index "I" is omitted): | |||||
Sales = q1 · Priceincome | |||||
Priceincome = Taxmining · Pricemarket | |||||
COGS = qO↑ · CO + qG↑ · CG↑ + qW↑ · CW↑ + qW↓ · CW↓ |
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
Petroleum Industry / Upstream / Production / Field Development Plan
[ Petroleum Asset NPV ][ Petroleum Asset PI ]
[ Statement of Income ( P&L) ]
Reference
q