Realised prices and the field netback
Benchmarks, differentials, royalties, costs per boe.
By Surojit Chakraverti, founder of L3VLUP and an investor running a long-short healthcare and technology equities strategy.
On this subject: realised prices and the field netback.Updated 5 November 2026
Part of project finance and infrastructure models, with the models, labs and guides around it.
What it does
What a producer keeps from each barrel. Prices start from the benchmarks on a forward curve (WTI for oil, Henry Hub for gas) and are realised at a differential for quality and the cost of reaching the hub; natural gas liquids sell at a share of WTI. Revenue by product is volume times realised price, with gas sold per mcf, six of them to a boe. Royalties to mineral owners, production taxes, lease operating expense and gathering, processing and transport come off to leave the field netback, the cash margin per boe; G&A takes it to EBITDAX.
Where it lives
The same schedule in each model that carries it, with the rows to open. Open a model in the browser, go to the sheet, and click the lines.
- Assumptions, rows 11–21: WTI, strip (FY0 actual), WTI, low-price deck, WTI, high-price deck, WTI, selected deck…
- Assumptions, rows 50–57: Royalty, % of revenue, Production and severance taxes, % of revenue after royalties, Lease operating expense, FY0, Lease operating expense inflation, annual…
- Operations, rows 6–9: Oil, NGLs, Gas, Realised price per boe
- Operations, rows 12–17: Oil revenue, NGL revenue, Gas revenue, Revenue…
- Operations, rows 20–31: Less: royalties, Less: production and severance taxes, Lease operating expense per boe, Less: lease operating expense…
What a reviewer looks for
- A boe of gas priced like a barrel of oil.
- Production taxes charged on revenue before royalties are paid away.
- One price for every product, so a gassier mix looks as valuable as an oily one.
Learn it, then build it
Vocabulary: Barrel of Oil Equivalent (boe), Recycle Ratio.