Financing new E&P technology A PRUDENT CASH FLOW MANAGEMENT SYSTEM IS ESSENTIAL FOR ENTREPRENEURIAL SUCCESS

摘要

FOR OIL AND GAS ENTREPRENEURS, raising capital in a highly volatile and risk susceptible industry is a challenge. Understanding the broad sources of available capital is the fuel for making an entrepreneur's vision a reality. Most entrepreneurs bootstrap the business for the first few years, aiming at positive cash flow. Business cash flow is referred as EBITDA. Debt servicing, tax payment, asset building, and profit distribution to shareholders after payment of operating expenses is done with cash available in form of EBITDA. Depreciation and Amortization lowers taxable profits and increases a company's cash flow.