The percentage of net profit paid by a company to an investor based on the percentage share of the investor in that company. Net profit interest is a common type of interest in oil and gas companies, where the oil field is leased out to producers. A lease contract is then made, which will state the exact percentage of net profit (after all expenses is deducted) to be paid to the oil field owners or investors. Net profit interest should not be confused with royalty interest, which involves the payment of investor from the gross revenue rather than the net profit.
Related information about net profits interest:
- Net Profits Interest Definition | Investopedia
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 ...
- Net Profits Interest Definition & Example | InvestingAnswers
We explain the definition of Net Profits, provide a clear example of how it works and explain why it's an important concept in business, finance & investing.
- net profits interest: Schlumberger Oilfield Glossary
net profits interest. 1. n. [Oil and Gas Business], ID: 11428. A share of net proceeds from production paid solely from the working interest owners share.
- What is net profits interest? definition and meaning
Definition of net profits interest: The percentage of net profit paid by a company to an investor based on the percentage share of the investor in that company.
- Net-Profits Interest Law & Legal Definition
In the context of Oil and Gas law, net-profits interest refer to a share of net proceeds from production free of the costs of production. Net-profits interest is paid ...
- Definition of Net profits interest
Net profits interest -- A contractual arrangement under which the beneficiary, in exchange for consideration paid, receives a stated percentage of the net profits.
- Net Profits Interest in Oil and Gas Not UBI | Planned Giving Design ...
Nov 1, 2011 ... A separate net profits interest will be acquired each time Corporation makes an acquisition. Foundation will be obligated to acquire up to $x in ...
- Net Profits Interest - Acronyms and Abbreviations - The Free Dictionary
Acronym, Definition. NPI, No Pun Intended. NPI, Not Plugged In (computer/ network technical problem). NPI, National Provider Identifier. NPI, New Product ...