What is Ebitdax in oil and gas?

What is Ebitdax in oil and gas?

EBITDAX is an indicator of financial performance that is used when reporting earnings, specifically for oil and mineral exploration companies. The acronym stands for “Earnings Before Interest, Taxes, Depreciation (or Depletion), Amortization, and Exploration Expense.”

What is operational EBITDA?

Operating EBITDA means a measure used by the Company’s management to measure performance, and is defined as operating profit from continuing operations, plus equity in net earnings from affiliates, other income and depreciation and amortization, and further adjusted for Other Charges and other adjustments as determined …

What is adjusted Ebitdax?

Adjusted EBITDAX means the sum, without duplication, determined for Borrower and its Restricted Subsidiaries on a consolidated basis for the period in question, of EBITDAX for such period, including (a) all gains and losses from sales of Borrowing Base Assets, and (b) gross proceeds from sales of assets other than …

What expenses are included in EBITDA?

Understanding EBITDA EBITDA is essentially net income (or earnings) with interest, taxes, depreciation, and amortization added back. EBITDA can be used to analyze and compare profitability among companies and industries, as it eliminates the effects of financing and capital expenditures.

Does EBITDA include depletion?

4. With respect to the SEC’s point regarding the exclusion of recurring items from a non-GAAP performance measure, EBITDA, by definition, excludes interest, taxes, depreciation, depletion and amortization which are all recurring items.

What is a good operating profit margin?

A higher operating margin indicates that the company is earning enough money from business operations to pay for all of the associated costs involved in maintaining that business. For most businesses, an operating margin higher than 15% is considered good.

Is operating income same as operating profit?

Operating profit is also referred to as operating income as well as earnings before interest and tax (EBIT)—although wrongfully, as the latter includes non-operating income, which is not a part of operating profit. If a firm does not have any non-operating income, its operating profit will equal EBIT.

Is adjusted EBITDA higher than EBITDA?

The bulk of the adjustments are often different types of expenses that are added back to EBITDA. The resulting adjusted EBITDA often reflects a higher earnings level because of the reduced expenses.

Does EBITDA include payroll?

Because the taxes are not linked directly to profits, do not include payroll taxes in EBITDA. Because of the fluctuation in the amount of income tax your business pays, include the cost of these income taxes in your EBITDA calculation. The bottom line: The taxes linked directly to profits are EBITDA taxes.

Is adjusted EBITDA a GAAP measure?

Adjusted EBITDA is a supplemental non-GAAP financial measure that is used by management and external users of the Company’s consolidated financial statements, such as industry analysts, investors, lenders and rating agencies. Adjusted Net Income is not a measure of net income as determined by GAAP.