Net profits interest

{
  "id": "MLC-T-ENE-001435",
  "term": "Net profits interest",
  "field": "Energy",
  "definition": "A contractual arrangement under which the beneficiary, in exchange for consideration paid, receives a stated percentage of the net profits. That type of arrangement is considered a nonoperating interest, as distinguished from a working interest, because it does not involve the rights and obligations of operating a mineral property (costs of exploration, development, and operation). The net profits interest does not bear any part of net losses.",
  "references": [
    "EIA Glossary"
  ],
  "url": "https://mlchart.com/terminology/energy/net-profits-interest/"
}