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Originally Posted by Leondros
No you are absolutely correct. All shareholders and analysts care about in commodity extraction is funds flow and EBITDA. Both of those metrics are normalized for depreciation/depletion. Shazam has no idea what they are talking about.
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I'm no-longer working in O&G but even in a new sector, capital expenditures are considered "investments" but operating costs are considered the devil and that line item must be cut as much as possible every month. We don't lease anything for that reason.
Every month we still get asked why our IT bill is so high after moving to the cloud. Nobody sees that they have avoided huge capital spend on refresh cycles every 3 years and that staffing has been pushed more to the development side than infrastructure.