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TeachMeFinance.com - explain Net profits interest Net profits interest The term 'Net profits interest' as it applies to the area of energy can be defined as ' 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'. Previous 5 Terms: net of a polyhedron Net operable capacity Net pen culture Net photovoltaic module shipment net primary production Next 5 Terms: Net Rainfall Net Receipts Net summer capacity Net winter capacity Net working interest About the author Mark McCracken Author: Mark McCracken is a corporate trainer and author living in Higashi Osaka, Japan. He is the author of thousands of online articles as well as the Business English textbook, "25 Business Skills in English". Copyright © 2005-2011 by Mark McCracken, All Rights Reserved. TeachMeFinance.com is an informational website, and should not be used as a substitute for professional medical, legal or financial advice. Information presented at TeachMeFinance.com is provided on an "AS-IS" basis. Please read the disclaimer for details.