Gathering, processing, and transportation cost per BOE, or GP&T cost per BOE, measures the cost of gathering hydrocarbons, processing natural gas and NGL streams, and transporting production on a barrel-of-oil-equivalent basis.
Why it matters
A producer can improve well-level output while still losing margin to higher midstream costs. GP&T therefore helps separate field operating efficiency from the cost of getting production into saleable form and to market.
EOG reported 2025 GP&T costs of $4.74 per BOE, up from $4.43 in 2024. The company said the increase reflected higher production and related costs in the Utica and Permian Basin, partly offset by lower costs elsewhere.
What is included
EOG describes GP&T as costs to process and deliver hydrocarbon products from the lease to a downstream point of sale. The category includes operating and maintenance expense on owned assets, third-party fees, and administrative expense associated with GP&T assets.
That scope is broader than Lifting Cost, which focuses on operating producing properties. It is also different from a pipeline company's transportation revenue.
Investor use
Compare GP&T cost per BOE with production growth, commodity mix, basin mix, and realized prices. A rising rate can reflect tighter infrastructure, more processing-intensive gas production, acquisition mix, or simply a different geographic production footprint.
Do not assume lower GP&T is always better. Owning more infrastructure can shift economics between operating costs, depreciation, and capital spending.
Source
Part of the Upstream E&P Economics
See It in Company Research
These companies are examples of how the concept is reported or discussed in public filings. Definitions can differ by issuer; these links open company research rather than a normalized metric comparison.
- EOGOpen operating-model research →17 of 18 reviewed concepts in Upstream E&P EconomicsOperating cost and per-unit profitability3 of 4 bridge concepts supportedContinue through this bridge:Operating Income per BOEUpstream DD&A per BOE
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