Such marketing agreements are of concern to some members of the energy industry, who recall that in the 1980s, similar agreements by oil-producing countries that wanted to sell crude oil in an excess market led to a catastrophic drop in prices, with net return pricing formulas encouraging refiners to maintain the race regardless of oil prices. Changes in net return prices attributed to a single company over time may also indicate whether production is more or less profitable. If the net return price of a selected oil company has increased over time, this could indicate the future success of the sector, while a company that shows the decline in netback prices could be a concern for investors. The most recent data show that the total net return price (or value) of total natural gas on the LNG facility GAS counter at prevailing natural gas and LNG prices in June/July 2019 is essentially negative, with a fluctuation margin of approximately USD 4/MMBtu. For comparison, the price of Henry Hub is currently 2.40 USD/MMBtu. The image below shows the estimated July liquefaction contribution margins for alternative trades on JKM`s last trading day in June (not cleaned for Asian spot day prices). Netback is an important measure because it is a very useful measure to evaluate a business without distorting non-operational, FinanceFinancing refers to the methods and types of financing of a company used to maintain its business and grow. It consists of loans and equity used for the realization of investments, for the management and for the general support of the activity or other costs. The calculation of this measure essentially indicates to an analyst the efficiency of the company in the production and sale of its oil and gas products. If you take this number per unit of oil equivalent barrel, you get a kind of efficiency reportRatio Analysis The analysis refers to the analysis of various financial information in a company`s accounts. They are mainly used by external analysts to determine different aspects of a business, such as profitability.
B, liquidity and solvency.