Lease Operating Expense
The recurring cost of running producing oil and gas wells -- labor, power, water handling, chemicals, equipment maintenance -- expressed per barrel-of-oil-equivalent (LOE per BOE). It is the cash cost to keep the existing production flowing, and it is the clearest read on a producer's operating efficiency and the quality of its acreage: low-cost, high-margin basins (the best of the Permian) run a few dollars per BOE, while marginal or aging fields cost far more. Rising LOE per BOE is a warning that fields are maturing or inflation is biting; producers that hold LOE down through a downturn have the staying power to outlast higher-cost rivals.
Related terms
Absorption Rate · AFFO per Share · Allowed Return on Equity · Alternative Investments · Anchor Tenant · Assets Under Management
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