RE:2022 Profitability from Seeking AlphaYeah I'm just learning about some of the metrics regarding oil&gas accounting vs GAAP accounting. Eric Nuttal is big on free cash flow yield. It's definined differently in the two accounting systems. Oil&gas accounting considers reserves in the ground differently depending on any futures contracts and this depends on the "collars" embedded in the contracts, 2-way, 3-way etc. It's quite complicated to me but I'm slowly working through it. For those who understand these numbers then I salute you.
Free cash flow is hard enough for me to understand in GAAP accounting for simple situations. Add in the uncertainty in the value of the claims on assets because of complex futures arrangements plus capital lease expenses based on variable or floating rates then I'm lost. Technically a project like Clearwater for BTE or C-block for FEC could be going quite well but financial stuff bogs down the sp sometimes and I don't understand why.