What is ebitdax

Popular Courses. Compare Accounts. The offers that appear in this table are from partnerships from which Investopedia receives compensation. This compensation may impact how and where listings appear. Investopedia does not include all offers available in the marketplace. EBITDAX is an indicator of financial performance used when reporting earnings, specifically for oil and mineral exploration companies.

Enterprise Value — EV Enterprise value EV is a measure of a company's total value, often used as a comprehensive alternative to equity market capitalization that includes debt.

Pre-Depreciation Profit Pre-depreciation profit includes earnings that are calculated prior to non-cash expenses. The EBITDA earnings before interest, taxes, depreciation, and amortization margin measures a company's profit as a percentage of revenue. Earnings Before Interest and Taxes EBIT Definition Earnings before interest and taxes is an indicator of a company's profitability and is calculated as revenue minus expenses, excluding taxes and interest. Debt-Adjusted Cash Flow DACF Debt-adjusted cash flow is used to analyze oil companies and represents pre-tax operating cash flow adjusted for financing expenses after taxes.

Partner Links. Related Articles. Tools for Fundamental Analysis Operating Income vs. Further, both measures of earnings exclude depreciation and amortization expenses. This exclusion removes the differences associated with renting versus owning certain equipment or property or, in rare instances, the existence of intangible assets as a result of prior acquisitions.

Eliminating the effects of these structural and accounting differences is vital to evaluating potential partnerships, investment opportunities or acquisitions within the industry. Exploration and the onset of production require considerable capital expenditure for equipment, labor, and other costs, including costs associated with abandonment and dry holes.

Therefore, it is important to know which measure to utilize. EBITDA, on the other hand, can be utilized for a company that has steady revenue streams from existing production.

Select basic ads. Create a personalised ads profile. Select personalised ads. Apply market research to generate audience insights. Measure content performance. Develop and improve products. List of Partners vendors. Your Money. Personal Finance. Your Practice. Popular Courses. Key Takeaways EBITDAX is a valuation metric used for oil and gas companies that measures a firm's ability to produce income from operations and service debts.

Compare Accounts. The offers that appear in this table are from partnerships from which Investopedia receives compensation. This compensation may impact how and where listings appear. Investopedia does not include all offers available in the marketplace. Related Terms Organic Reserve Replacement An organic reserve replacement is when an oil company accumulates reserves via exploration and production as opposed to purchasing proven reserves.

Debt-Adjusted Cash Flow DACF Debt-adjusted cash flow is used to analyze oil companies and represents pre-tax operating cash flow adjusted for financing expenses after taxes.