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What is a Lease Operating Statement (LOS)?
Definition
A Lease Operating Statement (LOS) brings the financial activity of an oil and gas property, well, lease, or group of assets into one view over a specific period of time. It typically brings together revenue and expenses so the financial results can be reviewed together. Depending on the company and reporting structure, an LOS may include revenue, lease operating expenses, taxes, capital activity, and other property-level financial information. LOS formats are not universal; categories, account groupings, and the level of detail can vary by operator, accounting system, and ownership structure.
Practical questions
- How is this well or property performing financially?
- Which wells have the highest operating costs?
- Which expense categories are changing?
- How has a well’s financial performance changed over time?
- Where should I investigate an unexpected variance?