Production Per Share

You may already be familiar with earnings per share. The metric provides a glimpse at how much profit a company generates, taken to the level of the shareholder.

Production per share represents a similar concept, but takes a different approach. The figure applies to the oil and gas business, quantifying the amount of stuff it pulls out of the ground...and then takes it to the level of its shareholders.

Production per share skips the accountants and executives and high rises and air-conditioned offices. Instead, it goes straight to the oil dereks and offshore rigs. The figure is calculated by taking the level of production a company has (barrels of oil per day in the case of crude, or cubic feet of gas per day for natural gas) and divides that by the number of shares the company has outstanding. The result is production per share.

See: Fully Diluted Shares Outstanding.