Operating netback

Operating netback,

Definition of Operating netback:

  1. A measure of oil and gas sales. This calculation is net of any royalties, or expenses for production and transportation. It is used primarily in the gas and oil industry as a benchmark for the comparison of performance between periods of time, competitors, and operations.

  2. Operating netback is a measure of oil and gas sales revenue net of royalties, production and transportation expenses. This is a non-GAAP measure used specifically in the oil and gas industry as a benchmark to compare performance between time periods, operations and competitors.

  3. The operating netback measure is generally calculated based on the oil or gas selling metric, such as per barrel in the case of oil. It is the amount of money the company gets to keep per barrel after royalties, production costs and costs of transport are deducted. It is an industry specific benchmark.

Meaning of Operating netback & Operating netback Definition