W&T Offshore’s operating netbacks
In 3Q16, W&T Offshore (WTI) reported operating netbacks of ~$16.67 per boe (barrel of oil equivalent), which is lower by ~7% when compared with 3Q15.
The operating netback (also called “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 market are subtracted from realized price. Operating netback is derived by subtracting field operating expenses (or production expenses), production taxes, and transportation expenses from realized price including hedging benefit.
Other S&P 500 (SPY) upstream companies like ConocoPhillips (COP), Pioneer Natural Resources (PXD), and Murphy Oil (MUR) have operating netbacks of $26.34 per boe, $39.24 per boe, and $16.77 per boe, respectively.