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The AAPG/Datapages Combined Publications Database

AAPG Special Volumes

Abstract


Pub. Id: A004 (1935)

First Page: 1011

Last Page: 1033

Book Title: SP 7: Geology of Natural Gas

Article/Chapter: Valuation of Natural Gas Properties

Subject Group: Field Studies

Spec. Pub. Type: Special Volume

Pub. Year: 1935

Author(s): Eugene A. Stephenson (2)

Abstract:

Earning power, or the present worth of net future income, constitutes a sound basis for the valuation of gas properties. Estimates of earning power require an analysis of the sources of supply, the cost of producing and transporting gas, the market demands, and estimates of gas reserves. Where the property embraces a complete unit extending from producing wells through gathering systems and transmission lines to the distribution plants, the entire system may be appraised as a unit, but separate appraisals of each division are preferred. The soundness of the result must necessarily depend to a great extent on the experience, skill, and insight of the engineer, who, while recognizing the many contingencies which may arise, also assumes that in general the policies which det rmine the present earning capacity will be continued.

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