Commercial & FinanceVerified
ddna meaning in oil and gas
ddna means Depreciation, Depletion and Amortization. It is a non cash charge used in the Income Statement. Before tax Profit (in a year ) = Net Revenue - Opeating Expenses - DD&A. To get your dd&a for a year, use the…
Definition
Depreciation, Depletion and Amortization
It is a non cash charge used in the Income Statement. Before tax Profit (in a year ) = Net Revenue - Opeating Expenses - DD&A. To get your dd&a for a year, use the formula ( Total Capitalized Cost/ Total Proved Develop Reserves ) times Production for that year. Easy, isn't it ?