Net profits interest

  A contractual arrangement under which the beneficiary, in exchange for consideration paid, receives a stated percentage of the net profits. That type of arrangement is considered a nonoperating interest, as distinguished from a working interest, because it does not involve the rights and obligations of operating a mineral property (costs of exploration, development, and operation). The net profits interest does not bear any part of net losses.
  U.S. Dept. of Energy, Energy Information Administration's Energy Glossary

Energy terms . 2014.

Look at other dictionaries:

  • Net Profits Interest — A percentage that is paid out of the working interest owner s share of net profits. This is a non operating interest that may be created when the owner of a property typically an offshore oil and gas property leases it out to another party for… …   Investment dictionary

  • Net profit — Accountancy Key concepts Accountant · Accounting period · Bookkeeping · Cash and accrual basis · Cash flow management · Chart of accounts  …   Wikipedia

  • Net.wars —   Book cover …   Wikipedia

  • Interest rate risk — is the risk (variability in value) borne by an interest bearing asset, such as a loan or a bond, due to variability of interest rates. In general, as rates rise, the price of a fixed rate bond will fall, and vice versa. Interest rate risk is… …   Wikipedia

  • interest — Synonyms and related words: absolute interest, absorb, absorption, accent, accrued dividends, accumulated dividends, acquisitiveness, activities, activity, advantage, advocacy, aegis, affair, affairs, affect, affect the interest, agacerie,… …   Moby Thesaurus

  • Net capital rule — The uniform net capital rule is a rule created by the U.S. Securities and Exchange Commission ( SEC ) in 1975 to regulate directly the ability of broker dealers to meet their financial obligations to customers and other creditors.[1] Broker… …   Wikipedia

  • net — Synonyms and related words: acquire, afford, angle, apprehend, arabesque, arrest, asking price, avails, avoirdupois, bag, bait, bait the hook, balance, bargain price, basketry, basketwork, be seized of, beef, beefiness, bid, bid price, birdlime,… …   Moby Thesaurus

  • Net Operating Profit Less Adjusted Taxes - NOPLAT — A financial metric that calculates a firm s operating profits after adjusting for taxes. By using operating income, or income before taking interest payments into account, NOPLAT is a better indicator of operating efficiency than net income, for… …   Investment dictionary

  • interest, dividends, rents and profits — As the term appears in stating the subject of a gift or grant by will, deed, or trust instrument:–net income. Re Heaton, 89 Vt 550, 96 A 21 …   Ballentine's law dictionary

  • Nonoperating interest —   Any mineral lease interest (e.g., royalty, production payment, net profits interest) that does not involve the rights and obligations of operating a mineral property.   U.S. Dept. of Energy, Energy Information Administration s Energy Glossary …   Energy terms

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.