PV10

A new exercise program that promises to get you ripped in just 10 minutes a day? An obscure movement in Scandinavian cinema founded in 2010 and based on an abundance of point-of-view techniques?

Nope. It's a way to value oil and gas assets.

The "PV" part of "PV10" stands for "present value." The figure is meant to provide the present value of expected oil and gas revenues in the future. The "10" part comes from the fact that the calculation assumes an annual discount rate of 10%.

Energy companies compute their PV10 as a way to estimate the value of their proven reserves of oil and gas.