Since the late 1970s, the Securities and Exchange Commission (SEC) and Financial Accounting Standards Board (FASB) have demanded that publicly traded oil and gas exploration and production (E&P) companies publish an estimate of their proved reserves' production, production costs, and associated taxes for five years in the future.1 The net cash flows of these estimates must then be discounted at a rate oil 0 percent per year, yielding a heavily discounted present value. This estimate is available in the companies' 10-K annual reports, which can be accessed on their websites. It is found in the notes that accompany the financial statements as part of the "Supplemental Information to Consolidated Financial Statements (Unaudited)" in a subpart named even more tediously, yet correctly, "Standardized Measure of Discounted Future Net Cash Flows Relating to Proved Oil and Gas Reserves."
展开▼
