ConocoPhillips’s production costs and margins
In 2Q16, excluding hedges, ConocoPhillips (COP) reported a positive cash margin but a negative total margin (see Chart 1).
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- production cash cost: LOE (lease operating expenses) + production and ad valorem taxes + transportation expenses + G&A (general and administrative) cash expenses + interest expenses
- total production cost: cash cost + DD&A (depletion, depreciation, and amortization)