{"product_id":"exploration-drilling-owner-makes","title":"How Much Exploration Drilling Owners Make: $180K Base Case","description":"\u003cbr\u003e\u003cdiv class=\"card_smpl\"\u003e\n\u003cp\u003eUsing the researched assumptions, an exploration drilling business owner can plan around \u003cstrong\u003e$180,000 in annual owner-operator pay\u003c\/strong\u003e if the owner fills the CEO \/ Lead Geologist role The business shows \u003cstrong\u003e$2712M in Year 1 revenue\u003c\/strong\u003e and \u003cstrong\u003e700% gross margin after direct job costs\u003c\/strong\u003e, but that cash is not automatically distributable The model also includes a \u003cstrong\u003e$2563M minimum cash gap in Month 6\u003c\/strong\u003e, heavy capex, payroll, insurance, marketing, and reserves Owner draws above salary should come only after debt service, downtime funding, taxes, and reinvestment are covered\u003c\/p\u003e\n\n\n\u003c\/div\u003e\u003cbr\u003e\u003cbr\u003e\u003csection class=\"fml-owner-metric-cards\" aria-label=\"Exploration drilling KPI cards\"\u003e\u003cdiv class=\"metric-grid\"\u003e\n\u003carticle class=\"metric-card is-green\"\u003e\u003cspan class=\"metric-icon-tip\" tabindex=\"0\" data-tooltip=\"Year 1 planned CEO \/ Lead Geologist salary; before tax, excludes distributions, and is not a guaranteed draw.\"\u003e\u003cimg class=\"metric-icon\" src=\"\/cdn\/shop\/files\/fml-owner-income-kpi-owner-income.svg\" alt=\"Owner income icon\" loading=\"lazy\"\u003e\u003c\/span\u003e\u003cspan\u003eOwner income\u003c\/span\u003e\u003cstrong class=\"metric-value\" tabindex=\"0\" data-tooltip=\"Year 1 planned CEO \/ Lead Geologist salary; before tax, excludes distributions, and is not a guaranteed draw.\"\u003e$180k\u003c\/strong\u003e\u003c\/article\u003e\u003carticle class=\"metric-card\"\u003e\u003cspan class=\"metric-icon-tip\" tabindex=\"0\" data-tooltip=\"Year 1 margin uses $1.837M EBITDA on $2.712M revenue; it excludes taxes, depreciation, and financing.\"\u003e\u003cimg class=\"metric-icon\" src=\"\/cdn\/shop\/files\/fml-owner-income-kpi-net-margin.svg\" alt=\"Net margin icon\" loading=\"lazy\"\u003e\u003c\/span\u003e\u003cspan\u003eNet margin\u003c\/span\u003e\u003cstrong class=\"metric-value\" tabindex=\"0\" data-tooltip=\"Year 1 margin uses $1.837M EBITDA on $2.712M revenue; it excludes taxes, depreciation, and financing.\"\u003e67.7%\u003c\/strong\u003e\u003c\/article\u003e\u003carticle class=\"metric-card\"\u003e\u003cspan class=\"metric-icon-tip\" tabindex=\"0\" data-tooltip=\"Year 1 modeled revenue from 160 mineral, 200 oil and gas, 80 geotechnical, and 40 data-analysis hours per month.\"\u003e\u003cimg class=\"metric-icon\" src=\"\/cdn\/shop\/files\/fml-owner-income-kpi-revenue-target.svg\" alt=\"Revenue for target pay icon\" loading=\"lazy\"\u003e\u003c\/span\u003e\u003cspan\u003eRevenue for target pay\u003c\/span\u003e\u003cstrong class=\"metric-value\" tabindex=\"0\" data-tooltip=\"Year 1 modeled revenue from 160 mineral, 200 oil and gas, 80 geotechnical, and 40 data-analysis hours per month.\"\u003e$2.71M\u003c\/strong\u003e\u003c\/article\u003e\u003carticle class=\"metric-card\"\u003e\u003cspan class=\"metric-icon-tip\" tabindex=\"0\" data-tooltip=\"Hard because Month 6 cash bottoms at -$2.563M on $3.785M launch capex and downtime risk.\"\u003e\u003cimg class=\"metric-icon\" src=\"\/cdn\/shop\/files\/fml-owner-income-kpi-business-difficulty.svg\" alt=\"Business difficulty icon\" loading=\"lazy\"\u003e\u003c\/span\u003e\u003cspan\u003eBusiness difficulty\u003c\/span\u003e\u003cstrong class=\"metric-value\" tabindex=\"0\" data-tooltip=\"Hard because Month 6 cash bottoms at -$2.563M on $3.785M launch capex and downtime risk.\"\u003eHard\u003c\/strong\u003e\u003c\/article\u003e\n\u003c\/div\u003e\u003c\/section\u003e\u003cbr\u003e\u003ch2\u003e\u003cspan style=\"color: #126CFF;\"\u003eWant to test your owner pay target?\n\u003c\/span\u003e\u003c\/h2\u003e\n\u003csection class=\"fml-owner-calculator\" aria-label=\"Exploration Drilling Owner Income Calculator\" data-locale=\"en-US\" data-currency=\"USD\" data-default-scenario=\"base\" data-export-filename=\"Exploration Drilling Owner Income Calculator.xlsx\" data-source-site-name=\"Financial Models Lab\" data-source-site-url=\"https:\/\/financialmodelslab.com\" data-source-page-title=\"Exploration Drilling Owner Income Calculator\" data-note-title=\"Planning note:\" data-note-text=\"Research-based planning estimate only. Actual owner income depends on contracts, rig use, payroll, financing, taxes, and reserves. It is not guaranteed salary, tax advice, or owner distribution advice.\"\u003e\u003cdiv class=\"fml-owner-card\"\u003e\n\u003cheader class=\"fml-owner-header\"\u003e\u003cdiv class=\"fml-owner-heading\"\u003e\n\u003cp class=\"fml-owner-eyebrow\"\u003eOwner income calculator\u003c\/p\u003e\n\u003cp class=\"fml-owner-intro\"\u003eEstimate owner take-home and target-pay gap from revenue, margin, costs, reserves, and target pay.\u003c\/p\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"fml-owner-scenarios\" aria-label=\"Income scenario presets\"\u003e\n\u003cbutton class=\"fml-owner-scenario\" type=\"button\" data-scenario=\"low\"\u003eLow\u003c\/button\u003e\u003cbutton class=\"fml-owner-scenario is-active\" type=\"button\" data-scenario=\"base\"\u003eBase\u003c\/button\u003e\u003cbutton class=\"fml-owner-scenario\" type=\"button\" data-scenario=\"high\"\u003eHigh\u003c\/button\u003e\n\u003c\/div\u003e\u003c\/header\u003e\u003cdiv class=\"fml-owner-layout\"\u003e\n\u003cform class=\"fml-owner-inputs\"\u003e\n\u003cdiv class=\"fml-owner-row\"\u003e\n\u003clabel class=\"fml-owner-label\"\u003e\u003cspan\u003eMonthly revenue\u003c\/span\u003e\u003cspan class=\"fml-owner-tooltip\" tabindex=\"0\" aria-label=\"Average monthly revenue before direct costs and overhead. Use a normal operating month, not a peak mobilization month.\"\u003ei\u003cspan role=\"tooltip\"\u003eAverage monthly revenue before direct costs and overhead. Use a normal operating month, not a peak mobilization month.\u003c\/span\u003e\u003c\/span\u003e\u003c\/label\u003e\u003cdiv class=\"fml-owner-money\"\u003e\n\u003cspan\u003e$\u003c\/span\u003e\u003cinput data-owner-field=\"monthlyRevenue\" data-owner-kind=\"money\" data-owner-label=\"Monthly revenue\" data-owner-note=\"Average monthly revenue before direct costs and overhead. Use a normal operating month, not a peak mobilization month.\" data-low=\"300000\" data-base=\"365429\" data-high=\"450000\" name=\"monthlyRevenue\" type=\"text\" inputmode=\"numeric\" value=\"365,429\"\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"fml-owner-row\"\u003e\n\u003clabel class=\"fml-owner-label\"\u003e\u003cspan\u003eGross margin\u003c\/span\u003e\u003cspan class=\"fml-owner-tooltip\" tabindex=\"0\" aria-label=\"Percent of revenue left after direct drilling costs, crew, fuel, and field support.\"\u003ei\u003cspan role=\"tooltip\"\u003ePercent of revenue left after direct drilling costs, crew, fuel, and field support.\u003c\/span\u003e\u003c\/span\u003e\u003c\/label\u003e\u003cdiv class=\"fml-owner-percent\"\u003e\n\u003cinput data-owner-field=\"grossMargin\" data-owner-kind=\"percent\" data-owner-label=\"Gross margin\" data-owner-note=\"Percent of revenue left after direct drilling costs, crew, fuel, and field support.\" name=\"grossMargin\" type=\"range\" min=\"0\" max=\"100\" step=\"1\" data-low=\"68\" data-base=\"70\" data-high=\"74\" value=\"70\"\u003e\u003coutput\u003e70%\u003c\/output\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"fml-owner-row\"\u003e\n\u003clabel class=\"fml-owner-label\"\u003e\u003cspan\u003eLabor cost\u003c\/span\u003e\u003cspan class=\"fml-owner-tooltip\" tabindex=\"0\" aria-label=\"Monthly payroll, drill crew, and contractor cash cost before owner pay.\"\u003ei\u003cspan role=\"tooltip\"\u003eMonthly payroll, drill crew, and contractor cash cost before owner pay.\u003c\/span\u003e\u003c\/span\u003e\u003c\/label\u003e\u003cdiv class=\"fml-owner-money\"\u003e\n\u003cspan\u003e$\u003c\/span\u003e\u003cinput data-owner-field=\"laborCost\" data-owner-kind=\"money\" data-owner-label=\"Labor cost\" data-owner-note=\"Monthly payroll, drill crew, and contractor cash cost before owner pay.\" data-low=\"65000\" data-base=\"70417\" data-high=\"80000\" name=\"laborCost\" type=\"text\" inputmode=\"numeric\" value=\"70,417\"\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"fml-owner-row\"\u003e\n\u003clabel class=\"fml-owner-label\"\u003e\u003cspan\u003eFixed overhead\u003c\/span\u003e\u003cspan class=\"fml-owner-tooltip\" tabindex=\"0\" aria-label=\"Rent, utilities, insurance, software, legal, and other recurring overhead.\"\u003ei\u003cspan role=\"tooltip\"\u003eRent, utilities, insurance, software, legal, and other recurring overhead.\u003c\/span\u003e\u003c\/span\u003e\u003c\/label\u003e\u003cdiv class=\"fml-owner-money\"\u003e\n\u003cspan\u003e$\u003c\/span\u003e\u003cinput data-owner-field=\"fixedOverhead\" data-owner-kind=\"money\" data-owner-label=\"Fixed overhead\" data-owner-note=\"Rent, utilities, insurance, software, legal, and other recurring overhead.\" data-low=\"18000\" data-base=\"19800\" data-high=\"22000\" name=\"fixedOverhead\" type=\"text\" inputmode=\"numeric\" value=\"19,800\"\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"fml-owner-row\"\u003e\n\u003clabel class=\"fml-owner-label\"\u003e\u003cspan\u003eMarketing\u003c\/span\u003e\u003cspan class=\"fml-owner-tooltip\" tabindex=\"0\" aria-label=\"Monthly sales and marketing spend needed to keep work flowing.\"\u003ei\u003cspan role=\"tooltip\"\u003eMonthly sales and marketing spend needed to keep work flowing.\u003c\/span\u003e\u003c\/span\u003e\u003c\/label\u003e\u003cdiv class=\"fml-owner-money\"\u003e\n\u003cspan\u003e$\u003c\/span\u003e\u003cinput data-owner-field=\"marketing\" data-owner-kind=\"money\" data-owner-label=\"Marketing\" data-owner-note=\"Monthly sales and marketing spend needed to keep work flowing.\" data-low=\"10000\" data-base=\"12500\" data-high=\"15000\" name=\"marketing\" type=\"text\" inputmode=\"numeric\" value=\"12,500\"\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"fml-owner-row\"\u003e\n\u003clabel class=\"fml-owner-label\"\u003e\u003cspan\u003eDebt service\u003c\/span\u003e\u003cspan class=\"fml-owner-tooltip\" tabindex=\"0\" aria-label=\"Monthly loan or financing payments tied to equipment and working capital.\"\u003ei\u003cspan role=\"tooltip\"\u003eMonthly loan or financing payments tied to equipment and working capital.\u003c\/span\u003e\u003c\/span\u003e\u003c\/label\u003e\u003cdiv class=\"fml-owner-money\"\u003e\n\u003cspan\u003e$\u003c\/span\u003e\u003cinput data-owner-field=\"debtService\" data-owner-kind=\"money\" data-owner-label=\"Debt service\" data-owner-note=\"Monthly loan or financing payments tied to equipment and working capital.\" data-low=\"0\" data-base=\"0\" data-high=\"0\" name=\"debtService\" type=\"text\" inputmode=\"numeric\" value=\"\"\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"fml-owner-row\"\u003e\n\u003clabel class=\"fml-owner-label\"\u003e\u003cspan\u003eTax reserve\u003c\/span\u003e\u003cspan class=\"fml-owner-tooltip\" tabindex=\"0\" aria-label=\"Percent of profit held back for taxes before owner take-home.\"\u003ei\u003cspan role=\"tooltip\"\u003ePercent of profit held back for taxes before owner take-home.\u003c\/span\u003e\u003c\/span\u003e\u003c\/label\u003e\u003cdiv class=\"fml-owner-percent\"\u003e\n\u003cinput data-owner-field=\"taxReserve\" data-owner-kind=\"percent\" data-owner-label=\"Tax reserve\" data-owner-note=\"Percent of profit held back for taxes before owner take-home.\" name=\"taxReserve\" type=\"range\" min=\"0\" max=\"45\" step=\"1\" data-low=\"18\" data-base=\"24\" data-high=\"28\" value=\"24\"\u003e\u003coutput\u003e24%\u003c\/output\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"fml-owner-row\"\u003e\n\u003clabel class=\"fml-owner-label\"\u003e\u003cspan\u003eReinvestment reserve\u003c\/span\u003e\u003cspan class=\"fml-owner-tooltip\" tabindex=\"0\" aria-label=\"Percent kept for repairs, growth, working capital, and cash buffer.\"\u003ei\u003cspan role=\"tooltip\"\u003ePercent kept for repairs, growth, working capital, and cash buffer.\u003c\/span\u003e\u003c\/span\u003e\u003c\/label\u003e\u003cdiv class=\"fml-owner-percent\"\u003e\n\u003cinput data-owner-field=\"reinvestmentReserve\" data-owner-kind=\"percent\" data-owner-label=\"Reinvestment reserve\" data-owner-note=\"Percent kept for repairs, growth, working capital, and cash buffer.\" name=\"reinvestmentReserve\" type=\"range\" min=\"0\" max=\"35\" step=\"1\" data-low=\"5\" data-base=\"10\" data-high=\"12\" value=\"10\"\u003e\u003coutput\u003e10%\u003c\/output\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"fml-owner-row\"\u003e\n\u003clabel class=\"fml-owner-label\"\u003e\u003cspan\u003eTarget owner pay\u003c\/span\u003e\u003cspan class=\"fml-owner-tooltip\" tabindex=\"0\" aria-label=\"Monthly owner income target used to calculate the target-pay gap.\"\u003ei\u003cspan role=\"tooltip\"\u003eMonthly owner income target used to calculate the target-pay gap.\u003c\/span\u003e\u003c\/span\u003e\u003c\/label\u003e\u003cdiv class=\"fml-owner-money\"\u003e\n\u003cspan\u003e$\u003c\/span\u003e\u003cinput data-owner-field=\"targetOwnerPay\" data-owner-kind=\"money\" data-owner-label=\"Target owner pay\" data-owner-note=\"Monthly owner income target used to calculate the target-pay gap.\" data-low=\"25000\" data-base=\"35000\" data-high=\"50000\" name=\"targetOwnerPay\" type=\"text\" inputmode=\"numeric\" value=\"35,000\"\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\n\u003c\/form\u003e\n\u003caside class=\"fml-owner-results\" aria-live=\"polite\"\u003e\u003cspan class=\"fml-owner-tag\"\u003eOwner income output\u003c\/span\u003e\u003cdiv class=\"fml-owner-metrics\"\u003e\n\u003cdiv class=\"fml-owner-metric is-primary\"\u003e\n\u003cspan class=\"fml-owner-metric-label\"\u003eOwner Income\u003cspan class=\"fml-owner-tooltip\" tabindex=\"0\" aria-label=\"Monthly take-home after tax and reinvestment reserves.\"\u003ei\u003cspan role=\"tooltip\"\u003eMonthly take-home after tax and reinvestment reserves.\u003c\/span\u003e\u003c\/span\u003e\u003c\/span\u003e\u003cstrong data-owner-output=\"monthlyOwnerIncome\"\u003e$101K\u003c\/strong\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"fml-owner-metric\"\u003e\n\u003cspan class=\"fml-owner-metric-label\"\u003eNet Margin\u003cspan class=\"fml-owner-tooltip\" tabindex=\"0\" aria-label=\"Owner income divided by monthly revenue.\"\u003ei\u003cspan role=\"tooltip\"\u003eOwner income divided by monthly revenue.\u003c\/span\u003e\u003c\/span\u003e\u003c\/span\u003e\u003cstrong data-owner-output=\"netProfitMargin\"\u003e28%\u003c\/strong\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"fml-owner-metric\"\u003e\n\u003cspan class=\"fml-owner-metric-label\"\u003eRevenue for Target Pay\u003cspan class=\"fml-owner-tooltip\" tabindex=\"0\" aria-label=\"Monthly revenue needed to support the target owner pay.\"\u003ei\u003cspan role=\"tooltip\"\u003eMonthly revenue needed to support the target owner pay.\u003c\/span\u003e\u003c\/span\u003e\u003c\/span\u003e\u003cstrong data-owner-output=\"revenueNeeded\"\u003e$222K\u003c\/strong\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"fml-owner-metric is-target-gap is-positive\"\u003e\n\u003cspan class=\"fml-owner-metric-label\"\u003eTarget Pay Gap\u003cspan class=\"fml-owner-tooltip\" tabindex=\"0\" aria-label=\"Owner income minus target owner pay. Negative means the target pay is not covered.\"\u003ei\u003cspan role=\"tooltip\"\u003eOwner income minus target owner pay. Negative means the target pay is not covered.\u003c\/span\u003e\u003c\/span\u003e\u003c\/span\u003e\u003cstrong data-owner-output=\"targetPayGap\"\u003e$66,035\u003c\/strong\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\n\u003cdl class=\"fml-owner-result-list\"\u003e\n\u003cdiv\u003e\n\u003cdt\u003eAnnual owner income\u003c\/dt\u003e\n\u003cdd data-owner-output=\"annualOwnerIncome\"\u003e$1,212,424\u003c\/dd\u003e\n\u003c\/div\u003e\n\u003cdiv\u003e\n\u003cdt\u003eProfit before reserves\u003c\/dt\u003e\n\u003cdd data-owner-output=\"profitBeforeReserves\"\u003e$153,083\u003c\/dd\u003e\n\u003c\/div\u003e\n\u003cdiv\u003e\n\u003cdt\u003eTax + reinvestment reserve\u003c\/dt\u003e\n\u003cdd data-owner-output=\"reserveAmount\"\u003e$52,048\u003c\/dd\u003e\n\u003c\/div\u003e\n\u003cdiv\u003e\n\u003cdt\u003eTarget pay gap\u003c\/dt\u003e\n\u003cdd data-owner-output=\"cashAfterTargetPay\"\u003e$66,035\u003c\/dd\u003e\n\u003c\/div\u003e\n\u003c\/dl\u003e\n\u003cdiv class=\"fml-owner-bridge\"\u003e\n\u003cdiv class=\"fml-owner-bar-row\" data-owner-bridge=\"revenue\"\u003e\n\u003cspan\u003eRevenue\u003c\/span\u003e\u003cdiv\u003e\u003ci style=\"--fml-owner-share: 100%;\"\u003e\u003c\/i\u003e\u003c\/div\u003e\n\u003cb data-owner-bridge-value\u003e$365K\u003c\/b\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"fml-owner-bar-row\" data-owner-bridge=\"grossProfit\"\u003e\n\u003cspan\u003eGross profit\u003c\/span\u003e\u003cdiv\u003e\u003ci style=\"--fml-owner-share: 70%;\"\u003e\u003c\/i\u003e\u003c\/div\u003e\n\u003cb data-owner-bridge-value\u003e$256K\u003c\/b\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"fml-owner-bar-row\" data-owner-bridge=\"operatingCosts\"\u003e\n\u003cspan\u003eOperating costs\u003c\/span\u003e\u003cdiv\u003e\u003ci style=\"--fml-owner-share: 28%;\"\u003e\u003c\/i\u003e\u003c\/div\u003e\n\u003cb data-owner-bridge-value\u003e$103K\u003c\/b\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"fml-owner-bar-row\" data-owner-bridge=\"reserveAmount\"\u003e\n\u003cspan\u003eReserves\u003c\/span\u003e\u003cdiv\u003e\u003ci style=\"--fml-owner-share: 14%;\"\u003e\u003c\/i\u003e\u003c\/div\u003e\n\u003cb data-owner-bridge-value\u003e$52,048\u003c\/b\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"fml-owner-bar-row\" data-owner-bridge=\"ownerIncome\"\u003e\n\u003cspan\u003eOwner income\u003c\/span\u003e\u003cdiv\u003e\u003ci style=\"--fml-owner-share: 28%;\"\u003e\u003c\/i\u003e\u003c\/div\u003e\n\u003cb data-owner-bridge-value\u003e$101K\u003c\/b\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\n\u003cbutton class=\"fml-owner-export\" type=\"button\" data-owner-export\u003eEXPORT XLSX\u003c\/button\u003e\u003c\/aside\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"fml-owner-note\"\u003e\n\u003cspan class=\"fml-owner-note-icon\" aria-hidden=\"true\"\u003e!\u003c\/span\u003e\u003cp\u003e\u003cstrong\u003ePlanning note:\u003c\/strong\u003e Research-based planning estimate only. Actual owner income depends on contracts, rig use, payroll, financing, taxes, and reserves. It is not guaranteed salary, tax advice, or owner distribution advice.\u003c\/p\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\u003c\/section\u003e\u003cbr\u003e\u003cdiv class=\"container_new_design_blog\"\u003e\n\n\u003cdiv class=\"text-section_blog text-2_new_design_blog\"\u003e\n\n\u003cdiv class=\"line_top_blog\"\u003e\u003cbr\u003e\u003c\/div\u003e\n\n\u003ch3\u003e\u003cspan style=\"color: #126CFF;\"\u003eWant to check owner income in the Exploration Drilling model?\u003c\/span\u003e\u003c\/h3\u003e\n\n\u003cp\u003eThe dashboard in the \u003ca href=\"\/products\/exploration-drilling-financial-model\"\u003eExploration Drilling Financial Model Template\u003c\/a\u003e shows revenue, utilization, pricing, costs, reserves, and owner take-home assumptions. \u003cstrong\u003eOpen the model\u003c\/strong\u003e to review the scenarios, then use it for planning.\u003c\/p\u003e\n\n\u003ch4\u003eOwner-income model highlights\u003c\/h4\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eOwner take-home scenarios\u003c\/li\u003e\n\u003cli\u003eRevenue and margin charts\u003c\/li\u003e\n\u003cli\u003eCapex, cash gap, IRR\u003c\/li\u003e\n\u003c\/ul\u003e\n\n\u003c\/div\u003e\n\n\u003cdiv class=\"image-section_blog image-2_new_design_blog\"\u003e\n\n\u003cdiv class=\"preview-card\" data-preview-src=\"\/cdn\/shop\/files\/exploration-drilling-financial-model-dashboard-financialmodelslab_fb282c45-ee8c-4739-ae85-66ef1b0e98a0.webp\"\u003e\n\u003cimg class=\"preview-img\" width=\"100%\" height=\"auto\" src=\"\/cdn\/shop\/files\/exploration-drilling-financial-model-dashboard-financialmodelslab_fb282c45-ee8c-4739-ae85-66ef1b0e98a0.webp?width=500\" alt=\"Exploration Drilling Financial Model dashboard summarizes key KPIs, cash runway and operational performance with a dynamic dashboard for investor-ready reporting and to expose cash-flow blind spots.\"\u003e\n\u003cdiv class=\"preview-overlay\"\u003e\n\u003cbutton class=\"preview-btn\" type=\"button\" style=\"align-items: center; vertical-align: middle; display: inline-flex; justify-content: center; gap: 6px; line-height: 1;\"\u003e\nPREVIEW \u003csvg fill=\"#fff\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" aria-hidden=\"true\" focusable=\"false\" role=\"presentation\" viewbox=\"0 0 448 512\" width=\"14\"\u003e\u003cpath d=\"M416 176V86.63L246.6 256L416 425.4V336c0-8.844 7.156-16 16-16s16 7.156 16 16v128c0 8.844-7.156 16-16 16h-128c-8.844 0-16-7.156-16-16s7.156-16 16-16h89.38L224 278.6L54.63 448H144C152.8 448 160 455.2 160 464S152.8 480 144 480h-128C7.156 480 0 472.8 0 464v-128C0 327.2 7.156 320 16 320S32 327.2 32 336v89.38L201.4 256L32 86.63V176C32 184.8 24.84 192 16 192S0 184.8 0 176v-128C0 39.16 7.156 32 16 32h128C152.8 32 160 39.16 160 48S152.8 64 144 64H54.63L224 233.4L393.4 64H304C295.2 64 288 56.84 288 48S295.2 32 304 32h128C440.8 32 448 39.16 448 48v128C448 184.8 440.8 192 432 192S416 184.8 416 176z\"\u003e\u003c\/path\u003e\u003c\/svg\u003e\n\u003c\/button\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\n\n\u003c\/div\u003e\n\u003c\/div\u003e\n\n\u003ch2\u003e\u003cspan style=\"color: #126CFF;\"\u003eHow much revenue can an exploration drilling company make?\u003c\/span\u003e\u003c\/h2\u003e\u003cbr\u003e\n\u003cp\u003eAn \u003cstrong\u003eExploration Drilling\u003c\/strong\u003e company can model \u003cstrong\u003e$2.712M\u003c\/strong\u003e in Year 1 revenue, or about \u003cstrong\u003e$226,000 per month\u003c\/strong\u003e, but that is revenue, not owner income. For context on what drives that number, see \u003ca href=\"\/blogs\/kpi-metrics\/exploration-drilling\"\u003eWhat Is The Most Critical Metric To Measure The Success Of Exploration Drilling?\u003c\/a\u003e; the core issue is billable field time, not just contract size.\u003c\/p\u003e\n\u003cdiv class=\"container_2_clmn_row\"\u003e\n\u003cdiv class=\"card_smpl blue_card\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-Orange-blog-colons-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eModeled revenue\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003e\n\u003cstrong\u003eYear 1:\u003c\/strong\u003e $2.712M\u003c\/li\u003e\n\u003cli\u003e\n\u003cstrong\u003eYear 2:\u003c\/strong\u003e $3.122M\u003c\/li\u003e\n\u003cli\u003e\n\u003cstrong\u003eYear 3:\u003c\/strong\u003e $3.527M\u003c\/li\u003e\n\u003cli\u003e\n\u003cstrong\u003eYear 5:\u003c\/strong\u003e $4.254M\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"card_smpl\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-Orange-blog-intro-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eRevenue drivers\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eBillable rig days\u003c\/li\u003e\n\u003cli\u003eHourly or footage pricing\u003c\/li\u003e\n\u003cli\u003eMobilization and standby recovery\u003c\/li\u003e\n\u003cli\u003eClient delays and collections\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\u003cbr\u003e\u003ch2\u003e\u003cspan style=\"color: #126CFF;\"\u003eIs owning an exploration drilling business profitable?\u003c\/span\u003e\u003c\/h2\u003e\u003cbr\u003e\n\u003cp\u003e\u003cstrong\u003eExploration Drilling\u003c\/strong\u003e can be profitable under these assumptions: \u003cstrong\u003e$2,712M\u003c\/strong\u003e Year 1 revenue, \u003cstrong\u003e$665,800\u003c\/strong\u003e operating profit before debt, taxes, depreciation, and reserves, and a \u003cstrong\u003e20-month\u003c\/strong\u003e payback. The catch is the \u003cstrong\u003e$3,785M\u003c\/strong\u003e launch capex and the \u003cstrong\u003e$2,563M\u003c\/strong\u003e Month 6 cash trough, so funding and liquidity matter as much as margin. \u003c\/p\u003e\n\u003cdiv class=\"container_2_clmn_row\"\u003e\n\u003cdiv class=\"card_smpl\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-Orange-blog-intro-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eProfit drivers\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003e\n\u003cstrong\u003e90% IRR\u003c\/strong\u003e on the model\u003c\/li\u003e\n\u003cli\u003e\n\u003cstrong\u003e9,985% ROE\u003c\/strong\u003e on the model\u003c\/li\u003e\n\u003cli\u003eMore utilization lifts upside\u003c\/li\u003e\n\u003cli\u003eBillable hours drive revenue\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"card_smpl blue_card\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-Orange-blog-colons-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eMain risks\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eHeavy launch capex\u003c\/li\u003e\n\u003cli\u003eCash trough hits Month 6\u003c\/li\u003e\n\u003cli\u003eMore crews raise overhead\u003c\/li\u003e\n\u003cli\u003eDowntime and financing risk grow\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\u003cbr\u003e\u003ch2\u003e\u003cspan style=\"color: #126CFF;\"\u003eWhat revenue is needed to pay an exploration drilling owner?\u003c\/span\u003e\u003c\/h2\u003e\u003cbr\u003e\n\u003cp\u003eIf you want to pay an Exploration Drilling owner \u003cstrong\u003e$180,000\u003c\/strong\u003e a year, the model says that salary needs about \u003cstrong\u003e$257,143\u003c\/strong\u003e of gross revenue before overhead, marketing, reserves, debt, and taxes. The Year 1 plan shows \u003cstrong\u003e$2.712M\u003c\/strong\u003e in revenue, so the salary is workable on paper. The real squeeze is cash timing: launch capex totals \u003cstrong\u003e$3.785M\u003c\/strong\u003e, and minimum cash falls to \u003cstrong\u003e-$2.563M\u003c\/strong\u003e in Month \u003cstrong\u003e6\u003c\/strong\u003e.\u003c\/p\u003e\n\u003cdiv class=\"container_2_clmn_row\"\u003e\n\u003cdiv class=\"card_smpl\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-Orange-blog-intro-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eOwner pay math\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003e\n\u003cstrong\u003e$180,000\u003c\/strong\u003e salary target\u003c\/li\u003e\n\u003cli\u003e\n\u003cstrong\u003e$257,143\u003c\/strong\u003e gross revenue needed\u003c\/li\u003e\n\u003cli\u003eBefore overhead and taxes\u003c\/li\u003e\n\u003cli\u003eYear 1 revenue: \u003cstrong\u003e$2.712M\u003c\/strong\u003e\n\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"card_smpl blue_card\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-Orange-blog-colons-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eCash timing risk\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eLaunch capex totals \u003cstrong\u003e$3.785M\u003c\/strong\u003e\n\u003c\/li\u003e\n\u003cli\u003eMinimum cash reaches \u003cstrong\u003e-$2.563M\u003c\/strong\u003e\n\u003c\/li\u003e\n\u003cli\u003eThat happens in Month \u003cstrong\u003e6\u003c\/strong\u003e\n\u003c\/li\u003e\n\u003cli\u003eCash timing is the constraint\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\u003cbr\u003e\u003cbr\u003e\u003cbr\u003e\n\n\u003ch2\u003e\u003cspan style=\"color: #126CFF;\"\u003eWant the six drivers that move owner income most?\n\u003c\/span\u003e\u003c\/h2\u003e\n\u003csection class=\"fml-main-income-drivers\" aria-label=\"Accessible label for the six main income driver cards.\"\u003e\u003carticle class=\"driver-option is-cards\"\u003e\u003cdiv class=\"main-driver-grid\"\u003e\n\u003carticle class=\"main-driver-card is-primary\"\u003e\u003cdiv class=\"main-driver-heading\"\u003e\n\u003cspan class=\"driver-rank\"\u003e1\u003c\/span\u003e\u003ch4\u003eRig Utilization\u003c\/h4\u003e\n\u003c\/div\u003e\n\u003cstrong\u003e$2.712M\u003c\/strong\u003e\u003cp\u003eMore billable hours across the rigs drives the Year 1 revenue base, which is what funds owner take-home after payroll and fuel.\u003c\/p\u003e\u003c\/article\u003e\u003carticle class=\"main-driver-card\"\u003e\u003cdiv class=\"main-driver-heading\"\u003e\n\u003cspan class=\"driver-rank\"\u003e2\u003c\/span\u003e\u003ch4\u003eContract Pricing\u003c\/h4\u003e\n\u003c\/div\u003e\n\u003cstrong\u003e$450-$750\u003c\/strong\u003e\u003cp\u003eMoving rates from $450 to $750 an hour lifts owner income because price hits every billable hour before the fixed base.\u003c\/p\u003e\u003c\/article\u003e\u003carticle class=\"main-driver-card\"\u003e\u003cdiv class=\"main-driver-heading\"\u003e\n\u003cspan class=\"driver-rank\"\u003e3\u003c\/span\u003e\u003ch4\u003eCrew Productivity\u003c\/h4\u003e\n\u003c\/div\u003e\n\u003cstrong\u003e$845K\u003c\/strong\u003e\u003cp\u003eWith $845K of Year 1 payroll, better crew output per hour keeps more revenue in the owner's pocket.\u003c\/p\u003e\u003c\/article\u003e\u003carticle class=\"main-driver-card\"\u003e\u003cdiv class=\"main-driver-heading\"\u003e\n\u003cspan class=\"driver-rank\"\u003e4\u003c\/span\u003e\u003ch4\u003eDirect Costs\u003c\/h4\u003e\n\u003c\/div\u003e\n\u003cstrong\u003e70%\u003c\/strong\u003e\u003cp\u003eYear 1 direct costs run about 30%, so holding them down keeps a roughly 70% gross margin for payback and reinvestment.\u003c\/p\u003e\u003c\/article\u003e\u003carticle class=\"main-driver-card\"\u003e\u003cdiv class=\"main-driver-heading\"\u003e\n\u003cspan class=\"driver-rank\"\u003e5\u003c\/span\u003e\u003ch4\u003eDowntime \u0026amp; Capex\u003c\/h4\u003e\n\u003c\/div\u003e\n\u003cstrong\u003e$3.785M\u003c\/strong\u003e\u003cp\u003eThe $3.785M launch build and $2.563M Month 6 cash gap mean downtime hurts payback and delays any owner distribution.\u003c\/p\u003e\u003c\/article\u003e\u003carticle class=\"main-driver-card\"\u003e\u003cdiv class=\"main-driver-heading\"\u003e\n\u003cspan class=\"driver-rank\"\u003e6\u003c\/span\u003e\u003ch4\u003eOverhead \u0026amp; Reserves\u003c\/h4\u003e\n\u003c\/div\u003e\n\u003cstrong\u003e$237.6K\u003c\/strong\u003e\u003cp\u003eAt $237.6K of fixed overhead a year, plus reserve needs, free cash is tight and distributions are not guaranteed.\u003c\/p\u003e\u003c\/article\u003e\n\u003c\/div\u003e\u003c\/article\u003e\u003c\/section\u003e\u003cbr\u003e\u003ch2\u003e\u003cspan style=\"color: #126CFF;\"\u003eExploration Drilling Core Six Income Drivers\u003c\/span\u003e\u003c\/h2\u003e\u003cbr\u003e\u003cbr\u003e\n\u003ch3\u003e\u003cspan style=\"color: #126CFF;\"\u003eRig utilization\u003c\/span\u003e\u003c\/h3\u003e\u003cbr\u003e\n\u003cdiv class=\"container_new_design_timeline\"\u003e\n  \u003cdiv class=\"left-row1\"\u003e\n    \u003ch3\u003eRig Utilization\u003c\/h3\u003e\n    \u003cp\u003e\u003cstrong\u003eRig utilization\u003c\/strong\u003e is the share of calendar time that turns into \u003cstrong\u003ebillable hours\u003c\/strong\u003e or \u003cstrong\u003ebillable days\u003c\/strong\u003e. The Year 1 model uses \u003cstrong\u003e480 billable hours per month\u003c\/strong\u003e across mineral, oil and gas, geotechnical, and data analysis work, so each extra active day helps spread fixed payroll, insurance, leases, permits, and support costs across more revenue.\u003c\/p\u003e\n    \u003cp\u003eWhat hurts here is lost calendar time from weather, permitting, mobilization, client delays, and maintenance. If \u003cstrong\u003estandby recovery\u003c\/strong\u003e is not billed, the rig can look busy but still miss owner take-home because non-billable days keep the cost base in place while revenue stalls.\u003c\/p\u003e\n  \u003c\/div\u003e\n  \u003cdiv class=\"right-row1\"\u003e\n    \u003cdiv class=\"tips-box\"\u003e\n      \u003ch3\u003eTrack Billable Time First\u003c\/h3\u003e\n      \u003cp\u003eUse separate fields for \u003cstrong\u003ebillable hours\u003c\/strong\u003e, \u003cstrong\u003ebillable days\u003c\/strong\u003e, \u003cstrong\u003estandby recovery\u003c\/strong\u003e, and \u003cstrong\u003ecalendar availability\u003c\/strong\u003e. Here’s the quick math: \u003cstrong\u003e160 + 200 + 80 + 40 = 480\u003c\/strong\u003e billable hours a month. That split tells you whether the rig is truly earning or just scheduled.\u003c\/p\u003e\n      \u003cul class=\"lst_crct_blog\"\u003e\n        \u003cli\u003eTrack non-billable days by cause.\u003c\/li\u003e\n        \u003cli\u003eBill standby, not just drilling.\u003c\/li\u003e\n        \u003cli\u003eWatch maintenance days weekly.\u003c\/li\u003e\n        \u003cli\u003eForecast weather and permit gaps.\u003c\/li\u003e\n      \u003c\/ul\u003e\n      \u003cp\u003eIf availability drops and the rig still carries payroll, insurance, leases, permits, and support, owner pay shrinks fast. The fix is tighter scheduling and contract terms that recover waiting time.\u003c\/p\u003e\n    \u003c\/div\u003e\n  \u003c\/div\u003e\n  \u003cdiv class=\"timeline\"\u003e\u003c\/div\u003e\n  \u003cdiv class=\"step-circle step1\"\u003e1\u003c\/div\u003e\n\u003c\/div\u003e\u003cbr\u003e\u003cbr\u003e\u003ch3\u003e\u003cspan style=\"color: #126CFF;\"\u003eContract pricing\u003c\/span\u003e\u003c\/h3\u003e\u003cbr\u003e\n\u003cdiv class=\"container_new_design_timeline\"\u003e\n\u003cdiv class=\"right-row2\"\u003e\n\u003ch3\u003eContract pricing\u003c\/h3\u003e\n\u003cp\u003eContract pricing decides what gets billed for \u003cstrong\u003eday rates\u003c\/strong\u003e, \u003cstrong\u003ehourly rates\u003c\/strong\u003e, \u003cstrong\u003efootage rates\u003c\/strong\u003e, \u003cstrong\u003emobilization\u003c\/strong\u003e, \u003cstrong\u003estandby\u003c\/strong\u003e, and \u003cstrong\u003echange orders\u003c\/strong\u003e. Year 1 modeled hourly rates are \u003cstrong\u003e$450\u003c\/strong\u003e for mineral exploration, \u003cstrong\u003e$600\u003c\/strong\u003e for oil and gas exploration, \u003cstrong\u003e$250\u003c\/strong\u003e for geotechnical drilling, and \u003cstrong\u003e$350\u003c\/strong\u003e for data analysis. But pricing is not margin when direct costs eat \u003cstrong\u003e300%\u003c\/strong\u003e of Year 1 revenue.\u003c\/p\u003e\n\u003cp\u003eWeak contracts push geology, access, delay, and rework risk back to the contractor, so the owner pays for time that was never truly billable. That cuts gross margin, hurts cash flow, and can shrink owner draw even when invoices look healthy. One clean rule: if the contract does not pay for the extra risk, the business does.\u003c\/p\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"left-row2\"\u003e\n\u003cdiv class=\"tips-box\"\u003e\n\u003ch3\u003ePrice the risk in writing\u003c\/h3\u003e\n\u003cp\u003eTrack billed hours, billed days, footage, standby days, mobilization charges, and approved change orders by job. Use contract language that names who pays for access, bad ground, weather, and re-drilling. If extra work starts before a change order is signed, revenue quality drops fast and the owner is left funding the gap.\u003c\/p\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eBill mobilization separately\u003c\/li\u003e\n\u003cli\u003eDefine standby pay terms\u003c\/li\u003e\n\u003cli\u003eApprove change orders first\u003c\/li\u003e\n\u003cli\u003eCharge for rework risk\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"timeline\"\u003e\u003c\/div\u003e\n\u003cdiv class=\"step-circle step2\"\u003e2\u003c\/div\u003e\n\u003c\/div\u003e\u003cbr\u003e\u003cbr\u003e\u003ch3\u003e\u003cspan style=\"color: #126CFF;\"\u003eCrew productivity\u003c\/span\u003e\u003c\/h3\u003e\u003cbr\u003e\n\u003cdiv class=\"container_new_design_timeline\"\u003e\n\u003cdiv class=\"left-row3\"\u003e\n\u003ch3\u003eCrew productivity\u003c\/h3\u003e\n\u003cp\u003e\u003cstrong\u003eCrew productivity\u003c\/strong\u003e is how much safe drilling output the same payroll can produce, measured by \u003cstrong\u003efeet drilled per shift\u003c\/strong\u003e, \u003cstrong\u003emeters drilled per day\u003c\/strong\u003e, rework, overtime, incident rate, and nonproductive time. With \u003cstrong\u003e$845,000\u003c\/strong\u003e in Year 1 payroll for \u003cstrong\u003etwo drill crew members and one operations supervisor\u003c\/strong\u003e, better output can raise gross margin without adding headcount. But geology, depth, rig type, weather, and site conditions change the result.\u003c\/p\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"right-row3\"\u003e\n\u003cdiv class=\"tips-box\"\u003e\n\u003ch3\u003eTrack the shift\u003c\/h3\u003e\n\u003cp\u003eMeasure \u003cstrong\u003edaily feet drilled\u003c\/strong\u003e against crew hours, rework, and nonproductive time, then tie that to overtime and incident reports. The goal is simple: keep the same payroll working on more billable drilling time. If one crew needs more supervisor coverage or overtime to hit the job, margin can slip fast. Do not promise a fixed production rate; instead, forecast by site and compare actuals to plan.\u003c\/p\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eTrack feet, meters, rework, overtime.\u003c\/li\u003e\n\u003cli\u003eLog nonproductive time by cause.\u003c\/li\u003e\n\u003cli\u003eReview supervisor coverage each shift.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"timeline\"\u003e\u003c\/div\u003e\n\u003cdiv class=\"step-circle step3\"\u003e3\u003c\/div\u003e\n\u003c\/div\u003e\u003cbr\u003e\u003cbr\u003e\u003ch3\u003e\u003cspan style=\"color: #126CFF;\"\u003eDirect operating costs\u003c\/span\u003e\u003c\/h3\u003e\u003cbr\u003e\n\u003cdiv class=\"container_new_design_timeline\"\u003e\n  \u003cdiv class=\"right-row4\"\u003e\n    \u003ch3\u003eDirect job costs\u003c\/h3\u003e\n    \u003cp\u003eDirect job costs hit gross margin before overhead and owner pay. In Year 1, they run at \u003cstrong\u003e300% of revenue\u003c\/strong\u003e, built from \u003cstrong\u003e120%\u003c\/strong\u003e drilling consumables and minor repairs, \u003cstrong\u003e80%\u003c\/strong\u003e fuel and lubricants, \u003cstrong\u003e60%\u003c\/strong\u003e mobilization and logistics, and \u003cstrong\u003e40%\u003c\/strong\u003e third-party geological support. That means every \u003cstrong\u003e$100\u003c\/strong\u003e billed carries about \u003cstrong\u003e$300\u003c\/strong\u003e of direct cost.\u003c\/p\u003e\n    \u003cp\u003eBy Year 5, direct costs fall to \u003cstrong\u003e210%\u003c\/strong\u003e of revenue, but that still leaves the job layer underwater before overhead. Owner income only improves if pricing, utilization, and scope control push those costs down faster than revenue grows. If the contract does not recover site-specific costs, take-home pay gets squeezed fast.\u003c\/p\u003e\n  \u003c\/div\u003e\n  \u003cdiv class=\"left-row4\"\u003e\n    \u003cdiv class=\"tips-box\"\u003e\n      \u003ch3\u003eTrack cost by job line\u003c\/h3\u003e\n      \u003cp\u003eMeasure direct cost per drilling day and per foot, then split it by \u003cstrong\u003elabor\u003c\/strong\u003e, \u003cstrong\u003efuel\u003c\/strong\u003e, \u003cstrong\u003ebits\u003c\/strong\u003e, \u003cstrong\u003emud\u003c\/strong\u003e, \u003cstrong\u003ewater\u003c\/strong\u003e, \u003cstrong\u003ecasing\u003c\/strong\u003e, \u003cstrong\u003etrucking\u003c\/strong\u003e, \u003cstrong\u003elodging\u003c\/strong\u003e, and field support. Here’s the quick math: if direct cost is \u003cstrong\u003e300%\u003c\/strong\u003e of revenue, there is no gross margin left for overhead, debt, or owner draw.\u003c\/p\u003e\n      \u003cul class=\"lst_crct_blog\"\u003e\n        \u003cli\u003ePrice consumables by foot\u003c\/li\u003e\n        \u003cli\u003eTrack fuel by job\u003c\/li\u003e\n        \u003cli\u003eCode mobilization separately\u003c\/li\u003e\n        \u003cli\u003eBill outside support clearly\u003c\/li\u003e\n      \u003c\/ul\u003e\n      \u003cp\u003eUse change orders when geology, access, or weather adds cost. Keep field costs separate from corporate overhead so you can see whether the job is improving margin or just hiding waste.\u003c\/p\u003e\n    \u003c\/div\u003e\n  \u003c\/div\u003e\n  \u003cdiv class=\"timeline\"\u003e\u003c\/div\u003e\n  \u003cdiv class=\"step-circle step4\"\u003e4\u003c\/div\u003e\n\u003c\/div\u003e\u003cbr\u003e\u003cbr\u003e\u003ch3\u003e\u003cspan style=\"color: #126CFF;\"\u003eEquipment downtime and capex\u003c\/span\u003e\u003c\/h3\u003e\u003cbr\u003e\n\u003cdiv class=\"container_new_design_timeline\"\u003e\n\u003cdiv class=\"left-row5\"\u003e\n\u003ch3\u003eEquipment Downtime and Capex\u003c\/h3\u003e\n\u003cp\u003e\u003cstrong\u003eDowntime\u003c\/strong\u003e hits cash twice: the rig stops billing, but \u003cstrong\u003epayroll, insurance, and financing\u003c\/strong\u003e keep running. Owner income only shows up after those fixed bills are covered, so every non-billable day cuts take-home pay faster than most people expect.\u003c\/p\u003e\n\u003cp\u003eThe listed launch capex items add to \u003cstrong\u003e$26.05M\u003c\/strong\u003e from the numbers provided: \u003cstrong\u003e$25M\u003c\/strong\u003e rig, \u003cstrong\u003e$400,000\u003c\/strong\u003e support vehicles, \u003cstrong\u003e$150,000\u003c\/strong\u003e survey equipment, \u003cstrong\u003e$300,000\u003c\/strong\u003e server infrastructure, \u003cstrong\u003e$120,000\u003c\/strong\u003e core sampling tools, and \u003cstrong\u003e$80,000\u003c\/strong\u003e safety gear. The deck also states \u003cstrong\u003e$3,785M\u003c\/strong\u003e, so reconcile that figure before you size debt, depreciation, and owner distributions.\u003c\/p\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"right-row5\"\u003e\n\u003cdiv class=\"tips-box\"\u003e\n\u003ch3\u003eTrack Downtime Before You Pay Yourself\u003c\/h3\u003e\n\u003cp\u003eMeasure \u003cstrong\u003ebillable days\u003c\/strong\u003e, \u003cstrong\u003erepair hours\u003c\/strong\u003e, \u003cstrong\u003espare parts spend\u003c\/strong\u003e, and \u003cstrong\u003erebuild timing\u003c\/strong\u003e every month. If breakdowns rise, cash gets trapped in repairs and lost billing, so owner pay should wait until reserves cover the next fix and the next non-billable day. Treat \u003cstrong\u003edepreciation\u003c\/strong\u003e and \u003cstrong\u003ereplacement planning\u003c\/strong\u003e as required costs, not leftover profit.\u003c\/p\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eTrack downtime by rig\u003c\/li\u003e\n\u003cli\u003eSet a repair reserve monthly\u003c\/li\u003e\n\u003cli\u003eForecast replacement before failure\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"timeline\"\u003e\u003c\/div\u003e\n\u003cdiv class=\"step-circle step5\"\u003e5\u003c\/div\u003e\n\u003c\/div\u003e\u003cbr\u003e\u003cbr\u003e\u003ch3\u003e\u003cspan style=\"color: #126CFF;\"\u003eOverhead, debt, and reserves\u003c\/span\u003e\u003c\/h3\u003e\u003cbr\u003e\n\u003cdiv class=\"container_new_design_timeline\"\u003e\n  \u003cdiv class=\"right-row6\"\u003e\n    \u003ch3\u003eOverhead, debt, and reserves\u003c\/h3\u003e\n    \u003cp\u003e\u003cstrong\u003eField-level gross margin is not owner income.\u003c\/strong\u003e Year 1 fixed overhead is \u003cstrong\u003e$237,600\u003c\/strong\u003e, payroll is \u003cstrong\u003e$845,000\u003c\/strong\u003e, and marketing is \u003cstrong\u003e$150,000\u003c\/strong\u003e. Business insurance and permits alone run \u003cstrong\u003e$2,500 per month\u003c\/strong\u003e, before financing, bonding, compliance, safety programs, admin software, legal, accounting, and reserve cash. The model’s minimum cash hits \u003cstrong\u003enegative $2,563M\u003c\/strong\u003e in Month 6, so owner pay has to wait until liquidity is safe.\u003c\/p\u003e\n    \u003cp\u003eHere’s the quick math: gross margin must first cover overhead, debt service, and working cash. If cash goes negative, profit on paper does not pay the own\ner. That means the real owner draw is the leftover after monthly burn, not after job-level margin.\u003c\/p\u003e\n  \u003c\/div\u003e\n  \u003cdiv class=\"left-row6\"\u003e\n    \u003cdiv class=\"tips-box\"\u003e\n      \u003ch3\u003eTrack liquidity before owner pay\u003c\/h3\u003e\n      \u003cp\u003eMeasure \u003cstrong\u003ecash runway\u003c\/strong\u003e, monthly overhead, and reserve balance every month. Keep debt, compliance, and insurance costs below gross margin in the forecast, and do not set owner draws until the cash floor is positive.\u003c\/p\u003e\n      \u003cul class=\"lst_crct_blog\"\u003e\n        \u003cli\u003eTrack cash weekly.\u003c\/li\u003e\n        \u003cli\u003eSeparate overhead from job margin.\u003c\/li\u003e\n        \u003cli\u003eHold reserve cash first.\u003c\/li\u003e\n      \u003c\/ul\u003e\n      \u003cp\u003eIf payroll and fixed costs stay as modeled, owner income depends on tighter cash control, not just stronger gross margin. A simple rule: pay the owner only after overhead, debt, and reserves are funded.\u003c\/p\u003e\n    \u003c\/div\u003e\n  \u003c\/div\u003e\n  \u003cdiv class=\"timeline\"\u003e\u003c\/div\u003e\n  \u003cdiv class=\"step-circle step6\"\u003e6\u003c\/div\u003e\n\u003c\/div\u003e\u003cbr\u003e\u003cbr\u003e\u003cbr\u003e\u003ch2\u003e\u003cspan style=\"color: #126CFF;\"\u003eScenario objective: compare lean, base, and high owner-income cases\n\u003c\/span\u003e\u003c\/h2\u003e\n\u003csection class=\"fml-scenario-table\" aria-label=\"Exploration Drilling Owner Income Scenarios\" data-site-name=\"Financial Models Lab\" data-site-url=\"https:\/\/financialmodelslab.com\" data-source-title=\"Exploration Drilling Owner Income Scenarios\" data-note-label=\"Planning note\" data-note-text=\"Scenario ranges are researched planning assumptions, not guaranteed earnings, salary promises, tax advice, or distributions.\"\u003e\u003cdiv class=\"fml-scenario-table-card\"\u003e\n\u003cheader class=\"fml-scenario-table-header\"\u003e\u003cdiv\u003e\n\u003cp class=\"fml-scenario-table-eyebrow\"\u003eOwner income scenarios\u003c\/p\u003e\n\u003cp class=\"fml-scenario-table-description\"\u003eOwner income swings with rig use, pricing, collections, and downtime. The low case caps pay near the planned $180,000 salary base, while the high case assumes stronger throughput and pricing.\u003c\/p\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"fml-scenario-table-actions\"\u003e\u003cbutton class=\"fml-scenario-table-export\" type=\"button\" data-scenario-export\u003eEXPORT XLSX\u003c\/button\u003e\u003c\/div\u003e\u003c\/header\u003e\u003cdiv class=\"fml-scenario-table-wrap\"\u003e\u003ctable class=\"fml-scenario-table-grid\"\u003e\n\u003ccaption\u003eCompare downside, base, and upside owner pay under different drilling conditions.\u003c\/caption\u003e\n\u003cthead\u003e\u003ctr\u003e\n\u003cth class=\"fml-scenario-table-stub\" scope=\"col\" data-export-value=\"Scenario\"\u003eScenario\u003c\/th\u003e\n\u003cth class=\"fml-scenario-table-column\" scope=\"col\" data-export-value=\"Low Case\"\u003e\n\u003cspan class=\"fml-scenario-column-title\"\u003eLow Case\u003c\/span\u003e\u003cspan class=\"fml-scenario-badge is-soft\"\u003eLow Case\u003c\/span\u003e\n\u003c\/th\u003e\n\u003cth class=\"fml-scenario-table-column\" scope=\"col\" data-export-value=\"Base Case\"\u003e\n\u003cspan class=\"fml-scenario-column-title\"\u003eBase Case\u003c\/span\u003e\u003cspan class=\"fml-scenario-badge is-soft\"\u003eBase Case\u003c\/span\u003e\n\u003c\/th\u003e\n\u003cth class=\"fml-scenario-table-column\" scope=\"col\" data-export-value=\"High Case\"\u003e\n\u003cspan class=\"fml-scenario-column-title\"\u003eHigh Case\u003c\/span\u003e\u003cspan class=\"fml-scenario-badge is-warning\"\u003eHigh Case\u003c\/span\u003e\n\u003c\/th\u003e\n\u003c\/tr\u003e\u003c\/thead\u003e\n\u003ctbody\u003e\n\u003ctr data-scenario-row\u003e\n\u003cth class=\"fml-scenario-row-heading\" scope=\"row\" data-export-value=\"Launch model\"\u003e\u003cspan class=\"fml-scenario-row-heading-inner\"\u003e\u003cspan class=\"fml-scenario-row-icon is-launch\" aria-hidden=\"true\"\u003e\u003cimg class=\"fml-scenario-row-icon-img\" src=\"\/cdn\/shop\/files\/scenario-launch-model.svg\" alt=\"Launch model icon\" loading=\"lazy\"\u003e\u003c\/span\u003e\u003cspan\u003e\u003cspan class=\"fml-scenario-row-title\"\u003eLaunch model\u003c\/span\u003e\u003c\/span\u003e\u003c\/span\u003e\u003c\/th\u003e\n\u003ctd data-export-value=\"Owner pay stays under pressure in a weaker demand path.\"\u003eOwner pay stays under pressure in a weaker demand path.\u003c\/td\u003e\n\u003ctd data-export-value=\"Owner pay follows the modeled operating case.\"\u003eOwner pay follows the modeled operating case.\u003c\/td\u003e\n\u003ctd data-export-value=\"Owner pay rises in a stronger utilization and pricing path.\"\u003eOwner pay rises in a stronger utilization and pricing path.\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003ctr data-scenario-row\u003e\n\u003cth class=\"fml-scenario-row-heading\" scope=\"row\" data-export-value=\"Typical setup\"\u003e\u003cspan class=\"fml-scenario-row-heading-inner\"\u003e\u003cspan class=\"fml-scenario-row-icon is-setup\" aria-hidden=\"true\"\u003e\u003cimg class=\"fml-scenario-row-icon-img\" src=\"\/cdn\/shop\/files\/scenario-typical-setup.svg\" alt=\"Typical setup icon\" loading=\"lazy\"\u003e\u003c\/span\u003e\u003cspan\u003e\u003cspan class=\"fml-scenario-row-title\"\u003eTypical setup\u003c\/span\u003e\u003c\/span\u003e\u003c\/span\u003e\u003c\/th\u003e\n\u003ctd data-export-value=\"Lower utilization, slower collections, and more downtime keep income near or below the planned salary base.\"\u003eLower utilization, slower collections, and more downtime keep income near or below the planned salary base.\u003c\/td\u003e\n\u003ctd data-export-value=\"The model uses about $2.712M Year 1 revenue, about 70% gross margin, $665,800 operating profit before debt, taxes, depreciation, and reserves, and a $2.563M Month 6 cash gap.\"\u003eThe model uses about $2.712M Year 1 revenue, about 70% gross margin, $665,800 operating profit before debt, taxes, depreciation, and reserves, and a $2.563M Month 6 cash gap.\u003c\/td\u003e\n\u003ctd data-export-value=\"Higher rig use and stronger pricing push the model toward Year 5 revenue of $4.254M and 79% gross margin.\"\u003eHigher rig use and stronger pricing push the model toward Year 5 revenue of $4.254M and 79% gross margin.\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003ctr data-scenario-row\u003e\n\u003cth class=\"fml-scenario-row-heading\" scope=\"row\" data-export-value=\"Cost drivers\"\u003e\u003cspan class=\"fml-scenario-row-heading-inner\"\u003e\u003cspan class=\"fml-scenario-row-icon is-drivers\" aria-hidden=\"true\"\u003e\u003cimg class=\"fml-scenario-row-icon-img\" src=\"\/cdn\/shop\/files\/scenario-cost-drivers.svg\" alt=\"Cost drivers icon\" loading=\"lazy\"\u003e\u003c\/span\u003e\u003cspan\u003e\u003cspan class=\"fml-scenario-row-title\"\u003eCost drivers\u003c\/span\u003e\u003c\/span\u003e\u003c\/span\u003e\u003c\/th\u003e\n\u003ctd data-export-value=\"Lower rig use; slow collections; higher downtime; weaker pricing; more travel waste\"\u003e\u003cul class=\"fml-scenario-list\"\u003e\n\u003cli\u003eLower rig use\u003c\/li\u003e\n\u003cli\u003eslow collections\u003c\/li\u003e\n\u003cli\u003ehigher downtime\u003c\/li\u003e\n\u003cli\u003eweaker pricing\u003c\/li\u003e\n\u003cli\u003emore travel waste\u003c\/li\u003e\n\u003c\/ul\u003e\u003c\/td\u003e\n\u003ctd data-export-value=\"Stable project flow; planned pricing; steady collections; controlled overhead; staffed crews\"\u003e\u003cul class=\"fml-scenario-list\"\u003e\n\u003cli\u003eStable project flow\u003c\/li\u003e\n\u003cli\u003eplanned pricing\u003c\/li\u003e\n\u003cli\u003esteady collections\u003c\/li\u003e\n\u003cli\u003econtrolled overhead\u003c\/li\u003e\n\u003cli\u003estaffed crews\u003c\/li\u003e\n\u003c\/ul\u003e\u003c\/td\u003e\n\u003ctd data-export-value=\"Higher rig use; better pricing; faster collections; full crews; denser project mix\"\u003e\u003cul class=\"fml-scenario-list\"\u003e\n\u003cli\u003eHigher rig use\u003c\/li\u003e\n\u003cli\u003ebetter pricing\u003c\/li\u003e\n\u003cli\u003efaster collections\u003c\/li\u003e\n\u003cli\u003efull crews\u003c\/li\u003e\n\u003cli\u003edenser project mix\u003c\/li\u003e\n\u003c\/ul\u003e\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003ctr data-scenario-row\u003e\n\u003cth class=\"fml-scenario-row-heading\" scope=\"row\" data-export-value=\"Owner income range\"\u003e\u003cspan class=\"fml-scenario-row-heading-inner\"\u003e\u003cspan class=\"fml-scenario-row-icon is-range\" aria-hidden=\"true\"\u003e\u003cimg class=\"fml-scenario-row-icon-img\" src=\"\/cdn\/shop\/files\/scenario-planning-range.svg\" alt=\"Owner income range icon\" loading=\"lazy\"\u003e\u003c\/span\u003e\u003cspan\u003e\u003cspan class=\"fml-scenario-row-title\"\u003eOwner income range\u003c\/span\u003e\u003cspan class=\"fml-scenario-row-subtitle\"\u003eBefore owner reserves\u003c\/span\u003e\u003c\/span\u003e\u003c\/span\u003e\u003c\/th\u003e\n\u003ctd data-export-value=\"$0 - $120,000\"\u003e\n\u003cstrong class=\"fml-scenario-range\"\u003e$0 - $120,000\u003c\/strong\u003e\u003cspan class=\"fml-scenario-badge is-soft\"\u003eLow Case\u003c\/span\u003e\n\u003c\/td\u003e\n\u003ctd data-export-value=\"$150,000 - $200,000\"\u003e\n\u003cstrong class=\"fml-scenario-range\"\u003e$150,000 - $200,000\u003c\/strong\u003e\u003cspan class=\"fml-scenario-badge is-soft\"\u003eBase Case\u003c\/span\u003e\n\u003c\/td\u003e\n\u003ctd data-export-value=\"$200,000 - $300,000\"\u003e\n\u003cstrong class=\"fml-scenario-range\"\u003e$200,000 - $300,000\u003c\/strong\u003e\u003cspan class=\"fml-scenario-badge is-warning\"\u003eHigh Case\u003c\/span\u003e\n\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003ctr data-scenario-row\u003e\n\u003cth class=\"fml-scenario-row-heading\" scope=\"row\" data-export-value=\"Best fit\"\u003e\u003cspan class=\"fml-scenario-row-heading-inner\"\u003e\u003cspan class=\"fml-scenario-row-icon is-fit\" aria-hidden=\"true\"\u003e\u003cimg class=\"fml-scenario-row-icon-img\" src=\"\/cdn\/shop\/files\/scenario-best-fit.svg\" alt=\"Best fit icon\" loading=\"lazy\"\u003e\u003c\/span\u003e\u003cspan\u003e\u003cspan class=\"fml-scenario-row-title\"\u003eBest fit\u003c\/span\u003e\u003c\/span\u003e\u003c\/span\u003e\u003c\/th\u003e\n\u003ctd data-export-value=\"Use this to stress-test cash pay if projects slip or customers pay late.\"\u003eUse this to stress-test cash pay if projects slip or customers pay late.\u003c\/td\u003e\n\u003ctd data-export-value=\"Use this as the main planning case for hiring, lender talks, and cash control.\"\u003eUse this as the main planning case for hiring, lender talks, and cash control.\u003c\/td\u003e\n\u003ctd data-export-value=\"Use this to test upside if utilization and pricing both hold up.\"\u003eUse this to test upside if utilization and pricing both hold up.\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003c\/tbody\u003e\n\u003c\/table\u003e\u003c\/div\u003e\n\u003cdiv class=\"fml-scenario-table-note\"\u003e\n\u003cspan class=\"fml-scenario-table-note-icon\" aria-hidden=\"true\"\u003e!\u003c\/span\u003e\u003cp\u003e\u003cstrong\u003ePlanning note:\u003c\/strong\u003e Scenario ranges are researched planning assumptions, not guaranteed earnings, salary promises, tax advice, or distributions.\u003c\/p\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\u003c\/section\u003e","brand":"FinancialModelsLab","offers":[{"title":"Default Title","offer_id":49303744577779,"sku":"exploration-drilling-owner-makes","price":0.0,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0522\/6191\/2762\/files\/exploration-drilling-owner-makes.webp?v=1782682281","url":"https:\/\/financialmodelslab.com\/products\/exploration-drilling-owner-makes","provider":"Financial Models Lab","version":"1.0","type":"link"}