Quote:
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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It varies by public/private company and their goals. Private companies who aren't trying to put out a big profit number may want OPEX because its 100% tax deductible when incurred. Public companies or private companies that are worried about profitability may prefer CAPEX since it doesn't impact profit fully in the year incurred.