Finding and Development Cost
What it cost an oil and gas producer to add a barrel of new reserves -- exploration and development spending divided by the reserves those dollars found and made producible, quoted per barrel-of-oil-equivalent. It is the closest thing the industry has to a cost-of-goods-sold for its actual product, because a producer that cannot replace what it pumps is liquidating itself. Compare it to the realized price per barrel: the gap is the real margin of the business. Treat single-year figures cautiously -- spending and the reserves it books can land in different years, so a three-year average is the honest read.
Related terms
Absorption Rate · AFFO per Share · Allowed Return on Equity · Alternative Investments · Anchor Tenant · Ancillary Spend per Visit
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