Cash Flow from Investing covers the cash a company gains or spends from investment activities in financial market and operating subsidiaries. It also includes the cash the company used for property, plant and equipment (PPE).
For the
six
months ended in Jun. 2015, Dragon Oilspent£200.7 Mil on purchasing property, plant, equipment.
It gained£0.0 Mil from selling property, plant, and equipment.
It spent£0.0 Mil on purchasing business.
It gained£0.0 Mil from selling business.
It spent£0.0 Mil on purchasing investments.
It gained£0.0 Mil from selling investments.
It paid£4.7Mil for net Intangibles purchase and sale.
And it received£106.1 Mil from other investing activities.
In all, Dragon Oilspent£99.2 Mil on investment activities in financial market and operating subsidiaries for the
six
months ended in Jun. 2015.
Dragon Oil Cash Flow from Investing Historical Data
The historical data trend for Dragon Oil's Cash Flow from Investing can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Cash Flow from Investing covers the cash a company gains or spends from investment activities in financial market and operating subsidiaries. It also includes the cash the company used for property, plant and equipment (PPE).
If a company spends cash on property, plant and equipment (PPE), this will reduce their cash position. This is called Capital Expenditures (CPEX).
Likewise, if a company buys another company for cash, this will reduce their cash position.
Dragon Oil's Cash Flow from Investing for the fiscal year that ended in Dec. 2014 is calculated as:
Cash Flow from Investing for the trailing twelve months (TTM) ended in Jun. 2015 adds up the semi-annually data reported by the company within the most recent 12 months, which was £-387.2 Mil.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Dragon Oil (LSE:DGO) Cash Flow from Investing Explanation
Dragon Oil's purchase of property, plant, equipment for the
six
months ended in Jun. 2015 was £-200.7 Mil. It means Dragon Oil spent £200.7 Mil on purchasing property, plant, equipment.
In the capital spending for property, plant and equipment (PPE), some part of spending may be from the expansion of business. The business needs more property, plant and equipment (PPE) as it grows. Another part may be from replacement of the property, plant and equipment (PPE) of existing business. For some companies, the cash spent on replacing of the property, plant and equipment (PPE) of the existing business will be close to the depreciation of property, plant and equipment (PPE) reported in the income statement.
In Warren Buffett's definition of Owner's Earnings, he deducts the estimate of the cost of replacing the property, plant and equipment (PPE) of the existing business from cash flow from operations. The cash spent on the new property, plant, and equipment is not deducted. The reason is because these are not costs of the existing business. In his 1986 letter to shareholders, Warren Buffett wrote this about owner earnings:
"These represent (a) reported earnings plus (b) depreciation, depletion, amortization, and certain other non-cash charges...less (c) the average annual amount of capitalized expenditures for plant and equipment, etc. that the business requires to fully maintain its long-term competitive position and its unit volume....Our owner-earnings equation does not yield the deceptively precise figures provided by GAAP, since (c) must be a guess - and one sometimes very difficult to make. Despite this problem, we consider the owner earnings figure, not the GAAP figure, to be the relevant item for valuation purposes...All of this points up the absurdity of the 'cash flow' numbers that are often set forth in Wall Street reports. These numbers routinely include (a) plus (b) - but do not subtract (c)."
Dragon Oil's sale of property, plant, equipment for the
six
months ended in Jun. 2015 was £0.0 Mil. It means Dragon Oil gained £0.0 Mil from selling property, plant, and equipment.
3.Purchase Of Business:
Purchase of business indicates the amount used to purchase business.
Dragon Oil's purchase of business for the
six
months ended in Jun. 2015 was £0.0 Mil. It means Dragon Oil spent £0.0 Mil on purchasing business.
4. Sale Of Business:
Sale of business indicates the amount gained from selling business.
Dragon Oil's sale of business for the
six
months ended in Jun. 2015 was £0.0 Mil. It means Dragon Oil gained £0.0 Mil from selling business.
5. Purchase Of Investment:
Purchase of Investments represents cash outflow on the purchase of investments in securities.
Dragon Oil's purchase of investment for the
six
months ended in Jun. 2015 was £0.0 Mil. It means Dragon Oil spent {stock_data.stock.currency_symbol}}0.0 Mil on purchasing investments.
6. Sale Of Investment:
Sale of Investments represents cash inflow on the sale of investments in securities.
Dragon Oil's sale of investment for the
six
months ended in Jun. 2015 was £0.0 Mil. It means Dragon Oil gained £0.0 Mil from selling investments.
7. Net Intangibles Purchase And Sale:
Net Intangibles purchase and sale means the net cash inflow received by a company that comes from the purchase and sale of intangibles. It equals the cash received from sale of intangibles minus the cash spent on purchasing intangibles.
Dragon Oil's net Intangibles purchase and sale for the
six
months ended in Jun. 2015 was £-4.7 Mil.
It means Dragon Oil paid £4.7 Mil for net Intangibles purchase and sale.
8. Cash From Discontinued Investing Activities:
Cash from discontinued investing activities means the cash received by a company that comes from the discontinued investing activities.
Dragon Oil's cash from discontinued investing activities for the
six
months ended in Jun. 2015 was 0.0 Mil.
It means Dragon Oil paid £0.0 Mil for discontinued investing activities.
9. Cash From Other Investing Activities:
Cash from other investing activities means the cash received by a company that comes from other investing activities.
Dragon Oil's cash from other investing activities for the
six
months ended in Jun. 2015 was £106.1 Mil.
It means Dragon Oil received £106.1 Mil from other investing activities.
Dragon Oil Cash Flow from Investing Related Terms
Thank you for viewing the detailed overview of Dragon Oil's Cash Flow from Investing provided by GuruFocus.com. Please click on the following links to see related term pages.
Dragon Oil PLC is an independent oil and gas exploration, development and production company. The Company's producing asset is the Cheleken Contract Area, in the eastern section of the Caspian Sea, offshore Turkmenistan. It has exploration blocks offshore Tunisia (the Bargou Exploration Permit), in Iraq (Block 9), Afghanistan (Sanduqli and Mazar-i-Sharif blocks), offshore the Philippines (Service Contract 63) in partnership with other companies and Block 19 in Egypt. The Company develops the hydrocarbon reserves in the Cheleken Contract Area in accordance with the terms of the Production Sharing Agreement (PSA). As at 31 December 2014 the Company had probably oil reserves of 663 million barrels of oil and condensate, gas 2P reserves and contingent gas resources of c. 2.7 TCF. The Bargou Exploration Permit contains prospective resources, while Block 9, Sanduqli and Mazar-i-Sharif blocks and Block 19 are at an early stage of exploration. The Company is subject to the international laws and regulations that it operates in.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
LSE:DGO has been successfully added to your 