What was the exploration expenditure written off by Petro Stopping Center in 2024?
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 2024 was $374 million. This figure is part of a broader set of financial activities related to the exploration and evaluation of oil and natural gas resources. The document also provides comparative figures for 2023 and 2022, which were $272 million and $69 million respectively.
This write-off represents costs that Petro Stopping Center initially capitalized as intangible assets but later determined could not be commercially developed. These costs are then expensed, reflecting a reduction in the company's assets. The decision to write off exploration expenditures is based on technical, commercial, and management reviews, typically conducted annually, to assess the continued intent to develop or extract value from a discovery.
For a prospective franchisee, understanding these write-offs is crucial as they reflect the risks associated with oil and gas exploration. While franchisees are not directly involved in exploration activities, the financial health and stability of Petro Stopping Center, influenced by such write-offs, can impact the overall franchise system. It's important to note that these figures are part of the company's overall financial reporting and are subject to various accounting principles and estimates, as detailed in the notes referenced in the FDD.