What your decimal interest means

By Bill Givens · Published October 8, 2026

Your decimal interest is your share of one well, written as a fraction of 1. A decimal of 0.00125 means you are owed 0.125% of what the well earns. It is the single most important number on your statement, because every dollar on it is the whole well's number times this one.

How to read it

Move the decimal point two places to get a percentage. 0.00125 is 0.125%. Or flip it into a fraction: 0.00125 is 1 out of every 800 dollars the well earns.

On the example, 1 the decimal is 0.00125. The whole well sold 4,200 barrels, so 2 your share of the volume is 4,200 × 0.00125 = 5.25 barrels. The well's oil was worth $285,600, so 3 your share of the value is $285,600 × 0.00125 = $357.00.

Where the number comes from

For a royalty owner, the decimal is built from two things in your lease and your deed:

1. Your share of the land in the well's unit. A well is usually drilled across a block of land, often 640 acres. If you own 3.2 net mineral acres inside it, your share of the land is 3.2 ÷ 640 = 0.005.
2. Your royalty rate. The lease says what fraction of production goes to the mineral owner, often 1/8 (0.125) or 1/4 (0.25). At 1/4, your decimal is 0.005 × 0.25 = 0.00125.

Working interest owners, who pay a share of the costs, have a different kind of decimal. Statements usually label which kind you have. If yours says "royalty" or "RI," this page is about your number.

Why one owner can have several decimals

• Each well has its own unit, so you have a separate decimal for each well, even on the same land.
• If a unit is later reshaped, or a well is added, your decimal changes.
• If you own different kinds of interest, say a royalty and an overriding royalty, they show as separate lines.

What to check

• Does the decimal on the statement match the one on your division order (the paper you signed when the well was first paid)? If it moved, ask why.
• Does it stay the same from month to month for the same well? A change should come with a notice.
• Does it look like what you expect from your acres and your lease's royalty rate?

Operators sometimes call it a "decimal interest," "division of interest," "net revenue interest" (NRI) or "royalty interest." On a statement for a royalty owner they mean the same thing for our purposes: your share.

This is general information to help you read your statement. It is not legal, tax or investment advice. Your lease and your state's law decide what applies to you.