Net Revenue Interest
Mineral Rights & Energy Royalties
Definition
Net revenue interest is the percentage of production revenue an owner receives after royalties, overriding royalties, and other burdens are deducted from the gross working interest.
Why it matters
NRI determines the actual revenue share behind a mineral or working-interest investment. Small differences in burdens can materially change cash yield and reserve value.
Common misconceptions
- •Gross working interest and net revenue interest are not interchangeable.
- •An asset can look large on acreage but still have modest economics if the burden stack is heavy.
Technical details
Calculation
A simplified NRI calculation starts with working-interest percentage and subtracts lease royalties, overrides, production payments, and other revenue burdens.
Documentation
Confirm NRI through title opinions, division orders, lease records, joint operating agreements, and historical revenue statements.