Standardized measure of discounted future net cash flows
Estimated future cash inflows represent the revenues that would be received from production and are determined by applying yearend the average prices during the years ended.
Future price changes are considered only to the extent provided by contractual arrangements. Estimated future development and production costs are determined by estimating the expenditure to be incurred in developing and producing the proved reserves at the end of the year. Neither the effects of price and cost escalations nor expected future changes in technology and operating practices have been considered.
The standardized measure is calculated as the excess of future cash inflows from proved reserves less future costs of producing and developing the reserves, future income taxes and a yearly 10% discount factor.
Future production costs include the estimated expenditures related to the production of proved reserves plus any production taxes without consideration of future inflation. Future development costs include the estimated costs of drilling development wells and installation of production facilities, plus the net costs associated with dismantlement and abandonment of wells and facilities, under the assumption that year-end costs continue without considering future inflation. Future income taxes were calculated in accordance with the tax laws of the Countries in which Eni operates. The standardized measure of discounted future net cash flows, related to the preceding proved oil and gas reserves, is calculated in accordance with the requirements of FASB Extractive Activities - oil&gas (Topic 932). The standardized measure does not purport to reflect realizable values or fair market value of Eni’s proved reserves. An estimate of fair value would also take into account, among other things, hydrocarbon resources other than proved reserves, anticipated changes in future prices and costs and a discount factor representative of the risks inherent in the oil and gas exploration and production activity.
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Standardized measure of discounted future net cash flows |
(€ million) |
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Italy |
Rest of Europe |
North Africa |
Sub-Saharan |
Kazakhstan |
Rest of Asia |
America |
Australia |
Total |
|
December 31, 2011 |
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|
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|
|
|
|
|
|
|
Consolidated subsidiaries |
|
|
|
|
|
|
|
|
|
|
Future cash inflows |
38,200 |
37,974 |
109,825 |
59,263 |
50,443 |
10,403 |
11,980 |
5,185 |
323,273 |
|
Future production costs |
(5,740) |
(7,666) |
(17,627) |
(15,191) |
(7,845) |
(3,852) |
(2,687) |
(813) |
(61,421) |
|
Future development and abandonment costs |
(4,712) |
(7,059) |
(9,639) |
(5,734) |
(3,705) |
(2,842) |
(1,836) |
(224) |
(35,751) |
|
Future net inflow before income tax |
27,748 |
23,249 |
82,559 |
38,338 |
38,893 |
3,709 |
7,457 |
4,148 |
226,101 |
|
Future income tax |
(9,000) |
(15,912) |
(46,676) |
(23,075) |
(9,866) |
(1,124) |
(2,474) |
(1,254) |
(109,381) |
|
Future net cash flows |
18,748 |
7,337 |
35,883 |
15,263 |
29,027 |
2,585 |
4,983 |
2,894 |
116,720 |
|
10% discount factor |
(9,692) |
(2,572) |
(16,191) |
(4,833) |
(17,599) |
(559) |
(1,914) |
(1,122) |
(54,482) |
|
Standardized measure of discounted future net cash flows |
9,056 |
4,765 |
19,692 |
10,430 |
11,428 |
2,026 |
3,069 |
1,772 |
62,238 |
|
Equity-accounted entities |
|
|
|
|
|
|
|
|
|
|
Future cash inflows |
|
21 |
649 |
1,866 |
|
6,141 |
15,067 |
|
23,744 |
|
Future production costs |
|
(5) |
(259) |
(471) |
|
(1,540) |
(4,598) |
|
(6,873) |
|
Future development and abandonment costs |
|
(2) |
(36) |
(147) |
|
(1,247) |
(1,754) |
|
(3,186) |
|
Future net inflow before income tax |
|
14 |
354 |
1,248 |
|
3,354 |
8,715 |
|
13,685 |
|
Future income tax |
|
(3) |
(3) |
(189) |
|
(824) |
(5,368) |
|
(6,387) |
|
Future net cash flows |
|
11 |
351 |
1,059 |
|
2,530 |
3,347 |
|
7,298 |
|
10% discount factor |
|
|
(183) |
(475) |
|
(1,825) |
(2,155) |
|
(4,638) |
|
Standardized measure of discounted future net cash flows |
|
11 |
168 |
584 |
|
705 |
1,192 |
|
2,660 |
|
Total |
9,056 |
4,776 |
19,860 |
11,014 |
11,428 |
2,731 |
4,261 |
1,772 |
64,898 |
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|
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|
|
|
|
|
December 31, 2012 |
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|
|
|
|
|
|
|
|
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Consolidated subsidiaries |
|
|
|
|
|
|
|
|
|
|
Future cash inflows |
30,308 |
38,912 |
108,343 |
56,978 |
53,504 |
7,881 |
11,008 |
4,957 |
311,891 |
|
Future production costs |
(5,900) |
(8,190) |
(18,555) |
(14,844) |
(9,561) |
(2,854) |
(2,520) |
(921) |
(63,345) |
|
Future development and abandonment costs |
(3,652) |
(7,511) |
(8,412) |
(6,873) |
(3,802) |
(1,974) |
(1,502) |
(197) |
(33,923) |
|
Future net inflow before income tax |
20,756 |
23,211 |
81,376 |
35,261 |
40,141 |
3,053 |
6,986 |
3,839 |
214,623 |
|
Future income tax |
(6,911) |
(15,063) |
(44,256) |
(21,348) |
(10,293) |
(903) |
(2,906) |
(1,181) |
(102,861) |
|
Future net cash flows |
13,845 |
8,148 |
37,120 |
13,913 |
29,848 |
2,150 |
4,080 |
2,658 |
111,762 |
|
10% discount factor |
(5,519) |
(2,630) |
(16,539) |
(4,976) |
(17,943) |
(496) |
(1,337) |
(1,030) |
(50,470) |
|
Standardized measure of discounted future net cash flows |
8,326 |
5,518 |
20,581 |
8,937 |
11,905 |
1,654 |
2,743 |
1,628 |
61,292 |
|
Equity-accounted entities |
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|
|
|
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|
|
|
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Future cash inflows |
|
1 |
658 |
3,594 |
|
6,689 |
18,132 |
|
29,074 |
|
Future production costs |
|
|
(203) |
(576) |
|
(2,216) |
(5,003) |
|
(7,998) |
|
Future development and abandonment costs |
|
(1) |
(17) |
(101) |
|
(1,061) |
(2,563) |
|
(3,743) |
|
Future net inflow before income tax |
|
|
438 |
2,917 |
|
3,412 |
10,566 |
|
17,333 |
|
Future income tax |
|
|
(36) |
(1,291) |
|
(795) |
(5,729) |
|
(7,851) |
|
Future net cash flows |
|
|
402 |
1,626 |
|
2,617 |
4,837 |
|
9,482 |
|
10% discount factor |
|
|
(206) |
(962) |
|
(1,747) |
(3,621) |
|
(6,536) |
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Standardized measure of discounted future net cash flows |
|
|
196 |
664 |
|
870 |
1,216 |
|
2,946 |
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Total |
8,326 |
5,518 |
20,777 |
9,601 |
11,905 |
2,524 |
3,959 |
1,628 |
64,238 |
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|
December 31, 2013 |
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Consolidated subsidiaries |
|
|
|
|
|
|
|
|
|
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Future cash inflows |
28,829 |
33,319 |
92,661 |
58,252 |
50,754 |
12,487 |
10,227 |
5,294 |
291,823 |
|
Future production costs |
(6,250) |
(6,836) |
(16,611) |
(15,986) |
(9,072) |
(3,876) |
(2,379) |
(1,417) |
(62,427) |
|
Future development and abandonment costs |
(4,593) |
(6,202) |
(8,083) |
(7,061) |
(3,445) |
(3,960) |
(1,561) |
(279) |
(35,184) |
|
Future net inflow before income tax |
17,986 |
20,281 |
67,967 |
35,205 |
38,237 |
4,651 |
6,287 |
3,598 |
194,212 |
|
Future income tax |
(5,776) |
(12,746) |
(35,887) |
(20,491) |
(9,939) |
(1,391) |
(2,387) |
(1,093) |
(89,710) |
|
Future net cash flows |
12,210 |
7,535 |
32,080 |
14,714 |
28,298 |
3,260 |
3,900 |
2,505 |
104,502 |
|
10% discount factor |
(5,048) |
(2,110) |
(14,327) |
(5,619) |
(16,984) |
(1,683) |
(1,353) |
(1,201) |
(48,325) |
|
Standardized measure of discounted future net cash flows |
7,162 |
5,425 |
17,753 |
9,095 |
11,314 |
1,577 |
2,547 |
1,304 |
56,177 |
|
Equity-accounted entities |
|
|
|
|
|
|
|
|
|
|
Future cash inflows |
|
|
524 |
4,041 |
|
262 |
17,239 |
|
22,066 |
|
Future production costs |
|
|
(164) |
(1,465) |
|
(38) |
(5,467) |
|
(7,134) |
|
Future development and abandonment costs |
|
|
(17) |
(85) |
|
(73) |
(2,299) |
|
(2,474) |
|
Future net inflow before income tax |
|
|
343 |
2,491 |
|
151 |
9,473 |
|
12,458 |
|
Future income tax |
|
|
(20) |
(1,617) |
|
(61) |
(4,156) |
|
(5,854) |
|
Future net cash flows |
|
|
323 |
874 |
|
90 |
5,317 |
|
6,604 |
|
10% discount factor |
|
|
(175) |
(401) |
|
(20) |
(3,681) |
|
(4,277) |
|
Standardized measure of discounted future net cash flows |
|
|
148 |
473 |
|
70 |
1,636 |
|
2,327 |
|
Total |
7,162 |
5,425 |
17,901 |
9,568 |
11,314 |
1,647 |
4,183 |
1,304 |
58,504 |
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Changes in standardized measure of discounted future net cash flows |
(€ million) |
|
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Consolidated |
Equity accounted |
Total |
|
Standardized measure of discounted future net cash flows at December 31, 2010 |
46,077 |
1,083 |
47,160 |
|
Increase (decrease): |
|
|
|
|
- sales, net of production costs |
(23,744) |
(300) |
(24,044) |
|
- net changes in sales and transfer prices, net of production costs |
40,961 |
442 |
41,403 |
|
- extensions, discoveries and improved recovery, net of future production and development costs |
1,580 |
2,457 |
4,037 |
|
- changes in estimated future development and abandonment costs |
(3,890) |
(392) |
(4,282) |
|
- development costs incurred during the period that reduced future development costs |
7,301 |
866 |
8,167 |
|
- revisions of quantity estimates |
1,337 |
(87) |
1,250 |
|
- accretion of discount |
8,640 |
235 |
8,875 |
|
- net change in income taxes |
(17,067) |
(1,678) |
(18,745) |
|
- purchase of reserves in-place |
37 |
10 |
47 |
|
- sale of reserves in-place |
(146) |
|
(146) |
|
- changes in production rates (timing) and other |
1,152 |
24 |
1,176 |
|
Net increase (decrease) |
16,161 |
1,577 |
17,738 |
|
Standardized measure of discounted future net cash flows at December 31, 2011 |
62,238 |
2,660 |
64,898 |
|
Increase (decrease): |
|
|
|
|
- sales, net of production costs |
(28,595) |
(325) |
(28,920) |
|
- net changes in sales and transfer prices, net of production costs |
2,264 |
(56) |
2,208 |
|
- extensions, discoveries and improved recovery, net of future production and development costs |
4,868 |
812 |
5,680 |
|
- changes in estimated future development and abandonment costs |
(3,802) |
(357) |
(4,159) |
|
- development costs incurred during the period that reduced future development costs |
8,199 |
409 |
8,608 |
|
- revisions of quantity estimates |
3,725 |
824 |
4,549 |
|
- accretion of discount |
12,527 |
477 |
13,004 |
|
- net change in income taxes |
2,207 |
(830) |
1,377 |
|
- purchase of reserves in-place |
|
|
|
|
- sale of reserves in-place |
(1,509) |
(615) |
(2,124) |
|
- changes in production rates (timing) and other |
(830) |
(53) |
(883) |
|
Net increase (decrease) |
(946) |
286 |
(660) |
|
Standardized measure of discounted future net cash flows at December 31, 2012 |
61,292 |
2,946 |
64,238 |
|
Increase (decrease): |
(24,576) |
(261) |
(24,837) |
|
- sales, net of production costs |
(3,632) |
(223) |
(3,855) |
|
- net changes in sales and transfer prices, net of production costs |
|
|
|
|
- extensions, discoveries and improved recovery, net of future production and development costs |
1,699 |
3 |
1,702 |
|
- changes in estimated future development and abandonment costs |
(6,821) |
(427) |
(7,248) |
|
- development costs incurred during the period that reduced future development costs |
8,456 |
665 |
9,121 |
|
- revisions of quantity estimates |
6,385 |
(298) |
6,087 |
|
- accretion of discount |
11,937 |
521 |
12,458 |
|
- net change in income taxes |
5,587 |
379 |
5,966 |
|
- purchase of reserves in-place |
74 |
|
74 |
|
- sale of reserves in-place |
(252) |
(770) |
(1,022) |
|
- changes in production rates (timing) and other |
(3,972) |
(208) |
(4,180) |
|
Net increase (decrease) |
(5,115) |
(619) |
(5,734) |
|
Standardized measure of discounted future net cash flows at December 31, 2013 |
56,177 |
2,327 |
58,504 |
