uploads///SGY Q Operating Netbacks

The Story behind Stone Energy’s Operating Netbacks


Dec. 4 2020, Updated 10:52 a.m. ET

Operating netbacks

In 2Q16, Stone Energy’s (SGY) reported operating netback of ~$23.64 per boe (barrel of oil equivalent), which is higher by ~4% than in 2Q15.

Operating netback (also referred as production netback) is the oil and gas revenue realized per boe (barrel of oil equivalent) after all the costs to bring one barrel of oil equivalent to the marketplace are subtracted from realized price. Operating netback is derived by subtracting field operating expenses (or production expenses), production taxes, and transportation expenses from the realized price (including hedging benefits).

In 2Q16, S&P 500 (SPY) upstream peers like ConocoPhillips (COP), Pioneer Natural Resources (PXD), and Murphy Oil (MUR) had operating netbacks of $26.34 per boe, $39.24 per boe, and $16.77 per boe, respectively.

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