
Chart in Focus: ConocoPhillips’s Operating Netback
By Nicholas ChapmanUpdated
What is the operating netback?
The operating netback (also referred as production netback) is oil and gas revenue realized per boe (barrel of oil equivalent) after all costs to bring one boe to the market are subtracted from the realized price. The operating netback is derived by subtracting production expenses (or field operating expenses), production taxes, and transportation expenses from the realized price including hedging benefits.
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