Examples of Standardized Measure in a sentence
This amount shall be derived from using a discount rate of 10 percent a year to reflect the timing of the future net cash flows relating to proved oil and gas reserves.f. Standardized measure of discounted future net cash flows.
YE 2013* Actual YE 2012* Actual YE 2011* PV – 10 (discounted future net cash flows before income taxes) $182,776 $137,675 $81,919 Less: discounted future income taxes (45,923) (29,719) (25,712) Standardized measure of discounted future net cash flows $136,853 $107,956 $56,207 The undiscounted value represents an estimate of future net cash flows from proved developed reserves after deducting estimated severance and ad valorem taxes, but before deducting estimates of future income taxes.
Standardized measure does not give effect to derivative transactions.
Standardized measure is calculated in accordance with Statement of Financial Accounting Standards No. 69 Disclosures about Oil and Gas Producing Properties, as codified in ASC topic 932, Extractive Activities — Oil and Gas.
Standardized measure differs from PV-10 because standardized measure includes the effect of future income taxes.