Net Revenue Interest (NRI)
An owner's share of production revenue after royalties and other burdens are deducted — what a working-interest owner actually keeps.
Net revenue interest, or NRI, is the share of production revenue an owner actually keeps after the royalties and other burdens on a well are paid out. It is the revenue side of ownership, distinct from the cost side. A 50% working-interest owner in a tract leased at a 1/4 royalty does not net 50% of the revenue — the royalty comes off the top first, leaving an NRI of 50% × (1 − 0.25), or 37.5%.
For a working interest owner the gap between gross working interest and NRI matters enormously, because costs are billed on the working-interest percentage while income arrives on the smaller NRI. For a royalty or override owner, the NRI is simply their cost-free decimal interest in the well.
Every burden — lease royalty, an overriding royalty, an NPRI — reduces someone's NRI. Confirming the number against the title chain is standard before any deal.