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Simple English definitions for legal terms

net-profits interest

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A quick definition of net-profits interest:

Net-profits interest: A term used in the oil and gas industry to describe a share of production that is free of production costs. It is similar to a royalty, but it is only payable if there is a net profit. The costs used to calculate the net profit are negotiated and agreed upon beforehand.

A more thorough explanation:

Definition: Net-profits interest is a term used in the oil and gas industry to refer to a share of production that is free of the costs of production. It is similar to a royalty, but it is only payable if there is a net profit, and the costs used to calculate the net profit are negotiated.

Example: Let's say a company owns an oil well and agrees to give a net-profits interest of 10% to an investor. If the well produces 1,000 barrels of oil and the cost of production is $50 per barrel, the total cost of production would be $50,000. If the price of oil is $60 per barrel, the revenue from the sale of the oil would be $60,000. However, the net profit would be $10,000 ($60,000 - $50,000). The investor would then receive 10% of the net profit, which would be $1,000.

Explanation: This example illustrates how a net-profits interest works. The investor receives a share of the production, but only if there is a net profit. The costs used to calculate the net profit are negotiated, so they may vary from one agreement to another.

net profit | net quick assets

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19:43
@Dkk: yeah register 1 website and every swinging tom dick and harry calls/emails/texts to 'help with seo'. like bruh, if YOU found it, what i am doing is working
Dkk
19:43
Indeed!
19:48
wasp, i think people are hopeful for a gov who at least attempts to care about the common man
MIAMI A
[] AromaticTroubledDormouse
20:55
How does one know if they are UR1 or UR2?
[] AromaticTroubledDormouse
20:56
CONGRATS MACAQUE!
TY
got a random stanford email and almost had a heart attack
ALSO CONGRATS!
Congrats1!
21:15
Miami A, yall I'm so excited I could cry.
21:15
Feel like I can finally stop holding my breath!! Whew!!!
[] baddestbunny
22:16
every time I get accosted by a strange man who follows me around because my male coworkers were too busy talking to walk me back to my car I get closer to saying we need to bring back traditional gender roles
Dkk
22:32
Nice! @Macaque
Dkk
22:32
@Aromatic, Have to guess.
Dkk
22:33
That sucks @Bunny do you have to go to the hospital?
[] baddestbunny
22:40
I said accosted not assaulted
23:35
guys. my notre dame address just went long is this good or bad
1a2b3c4d26z
23:37
Oooooo me too
23:37
omg is this good or bad
Dkk
23:47
Idk if gender roles are gunna fix that then.
23:49
it looks like most people who applied in october last cycle didn't get a decision until january... does it even mean anything that our addresses went long??
hows ED 2 compared to ED 1?
Dkk
0:10
No idea
windyMagician
0:34
reporting live to say my ndls address also went long
does it mean anything ^
Dkk
2:21
NDLS and Fordham took a very long time last year. It's good info for people to know.
[] baddestbunny
4:29
let’s get after it boys and girls
Dkk
5:21
I gtg to bed soon.
Dkk
5:22
Big day today. Gunna be a crazy one. I will sleep through the first half.
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