A barrel of oil equivalent (BOE) is a unit that converts natural gas volumes into the energy equivalent of a barrel of oil — conventionally treating about 6,000 cubic feet (6 MCF) of gas as one barrel of oil — so that a well or interest producing both oil and gas can be summed and compared on a single, combined measure.
Oil is measured in barrels and gas in MCF (thousand cubic feet) or MMBtu — different units for different products. To talk about a well that makes both, the industry converts gas into barrel of oil equivalent using energy content. The common rule of thumb is 6 MCF of gas ≈ 1 BOE, based on roughly equal energy (about 6,000 cubic feet of gas holding similar Btu to one barrel of oil).
With that conversion, a well's oil and gas can be added into a single BOE figure, and production or reserves can be summarized in one number instead of two.
The critical caution: BOE equates energy, not value. Six MCF of gas may hold about the same Btu as a barrel of oil, but it usually does not sell for the same money — historically oil has often been worth several times more per BOE than gas. So a well's BOE count tells you about volume and energy, but two wells with the same BOE can have very different revenue depending on their oil-vs-gas mix.
This is why "BOE per day" is a useful size metric but a poor value metric on its own. The oil-to-gas ratio behind the BOE matters as much as the BOE total.
You will also see MBOE (thousand BOE) and MMBOE (million BOE) for larger figures, and BOE/d for a daily rate. Some companies use a conversion slightly different from 6:1, and a few argue the ratio should reflect price rather than energy — but 6 MCF to 1 BOE is the standard convention you will encounter most.
NGLs are usually counted close to one barrel each (they are already liquids), so a "BOE" total on a wet-gas well blends oil, gas-converted-to-BOE, and NGLs.
BOE is handy for understanding the size of a well or an interest at a glance, but when it comes to your royalty income, the mix matters more than the BOE total, because oil and gas (and NGLs) are priced separately on your check. An interest described as a certain BOE can be worth quite different amounts depending on how much of that BOE is oil versus gas.
Buckhead Energy values the oil, gas, and NGL streams by their own prices rather than treating BOE as interchangeable value. This page is educational information, not financial advice.
Oil & Gas Encyclopedia — all terms
Educational information only — not legal, tax, or investment advice. Consult a qualified attorney, CPA, or landman about your specific situation.
A unit that converts natural gas into the energy equivalent of a barrel of oil — conventionally about 6,000 cubic feet (6 MCF) of gas per one BOE — so a well producing both oil and gas can be summed and compared on a single combined measure.
About 6 MCF of gas equals one barrel of oil equivalent, based on roughly equal energy content. Some companies use a slightly different ratio, but 6:1 is the standard convention.
No. BOE equates energy, not value. Six MCF of gas may hold similar Btu to a barrel of oil but usually sells for much less, so two wells with the same BOE can generate very different revenue depending on their oil-versus-gas mix.
MBOE is thousand barrels of oil equivalent and MMBOE is million; BOE/d is a daily production rate in barrels of oil equivalent. They are just scaled versions of the BOE unit used for larger figures or rates.
Because oil, gas, and NGLs are priced separately on your royalty check. BOE tells you the energy size of an interest, but its value depends on how much of that BOE is higher-priced oil versus lower-priced gas.
Yes — Buckhead Energy is a direct buyer of mineral, royalty, NPRI, and ORRI interests across the United States, producing or non-producing. Buckhead Energy makes a free written offer, pays the title and closing costs, and charges no broker commission.
Buckhead Energy buys mineral and royalty interests across all 50 states and has completed acquisitions in 33 states. Buckhead Energy is a direct buyer, not a broker — we purchase mineral and royalty interests with our own capital. Buckhead Energy has been buying mineral and royalty interests since 2006. Buckhead Energy holds an A+ rating with the Better Business Bureau.
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