Upstream company revenues are based on the amount of oil and gas the companies produce as well as the prices at which they can sell the oil and gas. The cost component of most upstream companies comprises a few major categories. Firstly, the lease operating expense is broadly the day-to-day cost of producing hydrocarbons — such as labor costs for employees in the field, maintenance costs, and repairs related to oil and gas properties. Plus, the oil and gas companies pay royalties that amounts from 3,5% to 13,5% of revenue, diferentiated on the size of the production from a deposit. Lastly, G&A (general and administrative) expenses include overhead such as the cost of office space, professional fees, and other overhead.