What was the exploration expenditure written off by Petro Stopping Center in 2023?
Petro_Stopping_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | 2023 | 2022 | |
|---|---|---|---|
| Exploration and evaluation costs | |||
| Exploration expenditure written off | 374 | 272 | 69 |
| Other exploration costs | 107 | 86 | 87 |
| Exploration expense for the year | 481 | 358 | 156 |
| Intangible assets – exploration and appraisal expenditurea | 871 | 879 | 773 |
| Liabilities | 57 | 84 | 67 |
| Net assets | 814 | 795 | 706 |
| Cash used in operating activities | 107 | 85 | 86 |
| Cash used in investing activities | 734 | 392 | 375 |
Source: Item 23 — RECEIPTS **RECEIPTS (FDD pages 87–131)
What This Means (2025 FDD)
According to Petro Stopping Center's 2025 Franchise Disclosure Document, the exploration expenditure written off in 2023 was $272 million. This figure reflects costs associated with unsuccessful oil and natural gas exploration efforts that were expensed during that year. For comparison, the exploration expenditure written off in 2024 was $374 million, and in 2022 it was $69 million.
This data point is relevant for prospective franchisees as it provides insight into Petro Stopping Center's financial activities related to oil and natural gas exploration. Write-offs of exploration expenditures can indicate the level of risk and investment involved in the company's exploration projects. While Petro Stopping Center franchisees are not directly involved in exploration activities, understanding these financial aspects can offer a broader view of the company's overall financial health and strategy.
It's important to note that these figures are part of a larger context within Petro Stopping Center's financial statements. Factors such as the company's accounting methods, exploration strategies, and commodity price fluctuations can influence these write-offs. Therefore, prospective franchisees should consider this information in conjunction with other financial data and disclosures provided in the FDD to gain a comprehensive understanding of Petro Stopping Center's financial performance and risk profile.