EV, EBITDAX, and FCF formulas for E&P Companies

Hey quick question for those with experience in valuation within the E&P industry.

I know the simple formulas for the above; the formulas I assume that the non-practitioner uses. My question is whether the following are more realistic, and used on the job.

EV = equity value less Cash & Cash Equivalents, less Net Value of Derivatives, less Investments in Equity Companies, plus Total Debt, plus Asset Retirement Obligation, plus Capital Leases, plus Unfunded Pension Obligations, plus Preferred Stock, plus Noncontrolling Interests.

EBITDAX : Operating Income plus DD&A, plus Asset Retirement Accretion, plus Stock‐Based Compensation, plus Non‐Cash Derivative Losses, plus Impairment Charges, plus Other One‐Time and Restructuring Charges, plus Exploration Expense.

And for FCF do you guys define it in terms of Discretionary CF less Maintenance Capital Spending less Dividend Payments?

I got the EV and EBITDAX formulas from BIWS O&G quick reference; but as I'm getting familiar with E&P financial statements these formulas make sense, and I am wondering if a recruiter would be impressed if answered this way.

Any help is appreciated.

0 Comments

Career Advancement Opportunities

July 2026 Investment Banking

  • Evercore 01 99.4%
  • Moelis & Company 01 98.9%
  • JPMorgan 01 98.3%
  • Guggenheim Partners 01 97.7%
  • Morgan Stanley 07 97.2%

Overall Employee Satisfaction

July 2026 Investment Banking

  • Moelis & Company No 99.4%
  • Evercore No 98.9%
  • Morgan Stanley 01 98.3%
  • Banco Santander 02 97.7%
  • BMO Capital Markets 12 97.2%

Professional Growth Opportunities

July 2026 Investment Banking

  • Evercore 01 99.4%
  • Moelis & Company 01 98.9%
  • Morgan Stanley 06 98.3%
  • Goldman Sachs 01 97.7%
  • JPMorgan 01 97.2%

Total Avg Compensation

July 2026 Investment Banking

  • Vice President (16) $429
  • Associates (46) $258
  • 3rd+ Year Analyst (8) $210
  • 2nd Year Analyst (22) $179
  • Intern/Summer Associate (14) $159
  • 1st Year Analyst (80) $150
  • Intern/Summer Analyst (73) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
kanon's picture
kanon
99.0
3
Secyh62's picture
Secyh62
99.0
4
BankonBanking's picture
BankonBanking
99.0
5
GameTheory's picture
GameTheory
98.9
6
DrApeman's picture
DrApeman
98.9
7
dosk17's picture
dosk17
98.9
8
CompBanker's picture
CompBanker
98.9
9
Betsy Massar's picture
Betsy Massar
98.9
10
Linda Abraham's picture
Linda Abraham
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”