Owner netting
Owner netting, done the right way.
Owner netting: taking an eligible working interest owner's JIB out of their share of sales, so you send one net payment instead of a check and a bill. Royalty owners are paid in full.
20 clients and hundreds of wells operated
What you get
What lands on your desk.
- JIB netted for eligible working interest owners Each eligible WI owner's JIB taken out of their revenue.
- Royalty owners paid in full Nothing is taken out of a royalty payment.
- Unpaid balances carried forward If costs are more than revenue, the rest carries to the next month.
- A clear statement for each owner It shows exactly how the payment was figured: revenue share, cost share, and any past balance.
- Hard cases handled Negative balances, suspense, minimum check amounts, prior period adjustments, and ownership changes.
- Your OK first We figure each payment for you. You review and approve every payment before it goes out.
Sample netting statement: Sample Owner A, WI owner
| Line | How it is figured |
|---|---|
| Revenue share | 20 percent of sales (NRI) |
| Minus cost share | 25 percent of well costs (WI) |
| Minus past JIB balance | What is still owed |
| Net payment | Paid after your OK |
How it works
Three steps.
Give us access to your books.
We run your accounting in WolfePak today. If you'd rather stay on QuickBooks, we can work alongside it, or we can convert you to WolfePak. Full QuickBooks integration is coming soon, so ask us about pricing.
Send bills and statements as they come.
Forward vendor bills and buyer check stubs to your RedBird address. Or reply to our text with a photo or a file.
You approve. We close the month.
You approve every payment before it goes out, unless your agreement says otherwise. We close the books, and you get the Monthly Compliance and Close Report.
Compare
The old way vs RedBird.
The old way: A check to the owner and a JIB, both in the same month.
With RedBird: One net payment for each eligible working interest owner.
The old way: Royalty owners netted by mistake.
With RedBird: Royalty owners are never netted. They get their full royalty.
The old way: Unpaid balances forgotten.
With RedBird: Unpaid balances carried forward until they are paid.
The terms, in plain English.
- Netting
- Taking an owner's share of costs out of their share of sales before paying them.
- WI (working interest) owner
- An owner who pays a share of the costs. Only these owners can be netted.
- Royalty owner
- An owner who gets a share of sales and pays no costs. Royalty owners are paid without netting.
- Suspense
- Money on hold until something is fixed, like a missing address.
- Prior period adjustment
- A fix to a past month, like a late or corrected buyer statement.
Questions.
Who can be netted?
Only working interest (WI) owners, who share in the costs. Royalty owners get their royalty payment without costs taken out.
How does netting work?
Take an owner with a 25 percent working interest and a 20 percent net revenue interest. They get 20 percent of the sales. We take out 25 percent of the well costs, plus any JIB balance they still owe. What is left is their net payment. You approve it before it goes out.
What if costs are more than revenue?
The owner gets no payment that month, and the balance they still owe carries forward to the next month.
Get started
Get your back office off your desk.
Tell us what you need. We look up the public record the state keeps on your operator number. Then we reply to set up a call.
20 clients and hundreds of wells operated