Understanding Your Statement
A comprehensive guide to reading and understanding your revenue statements.
Statement Overview
Your monthly revenue statement provides detailed information about your mineral rights income. Understanding each section helps you track your earnings and verify accuracy.
Key Statement Components
- Owner Information: Your details and owner number
- Production Period: Month and year of production
- Payment Details: Amount, date, and method
- Well Information: Production data by well
Reading Your Statement
Sample Statement Breakdown
Header Section
- Statement Date: When the statement was generated
- Owner Number: Your unique identifier
- Check Number: Payment reference
- Property Name: Well or lease identification
Production Details
- Production Period: Month of production
- Product Type: Oil, gas, or other products
- Volume: Amount produced
- Price: Price per unit
Financial Information
- Gross Value: Total value before deductions
- Taxes: Severance and other applicable taxes
- Deductions: Operating costs or other charges
- Net Amount: Final payment amount
Understanding Calculations
Basic Revenue Calculation
Gross Revenue = Production Volume × Market Price Net Revenue = Gross Revenue × Royalty Interest - Deductions
Example Calculation:
Given:
- Production: 1,000 barrels of oil
- Price: $75 per barrel
- Royalty Interest: 20%
- Deductions: $1,000
Calculation:
- Gross Revenue: 1,000 × $75 = $75,000
- Royalty Share: $75,000 × 20% = $15,000
- Net Payment: $15,000 - $1,000 = $14,000
Common Statement Terms
Production Terms
- MCF
- Thousand cubic feet (gas measurement)
- BBL
- Barrel (oil measurement)
- BTU
- British Thermal Unit (heating value)
Financial Terms
- Severance Tax
- State tax on resource extraction
- Operating Cost
- Expenses for well operation
- Net Revenue Interest
- Your share of production revenue
Verifying Your Statement
Regular statement verification helps ensure accuracy. Key points to check:
- Owner information accuracy
- Production volumes match well records
- Price calculations align with market rates
- Deduction appropriateness and accuracy
Questions About Your Statement?
Our Owner Relations team is available to help explain your statement and address any concerns.