0.00050.012500.05
Your net revenue decimal, the fraction of unit revenue paid to you. Confirm this against your division order.
2K24,000 BOE/mo80K
Total monthly production from the drilling unit, in barrels-of-oil-equivalent.
$30$60/BOE$110
Price per BOE after differentials and severance tax. This is the variable you have the least control over.
What this tells you
Royalty income is cost-free, but it moves almost one-for-one with price. The chart shows the same position across five price environments — the spread is the price risk you carry.
Estimated Income at $60/BOE
Annual Income Across Price Scenarios
$40$144K
$55$198K
$70$252K
$85$306K
$100$360K
Year-1 annual income, before decline. The same well pays roughly 2.5× as much at $100 as at $40.
All ToolsFigures are illustrative estimates for education only and do not constitute investment advice or a projection of actual results.