Short Answer
Distributions are based on Net Revenue Interest (NRI), not just working‑interest percentage. NRI equals WI × (1 − royalty burden). Revenues are paid after royalties and operating costs.
What It Means to an Investor
Your WI bears its share of costs. Royalties are paid off the top. Your NRI fraction of gross sales, less taxes and LOE, becomes distributable cash. Build models with type‑curves, expected prices, LOE assumptions, and decline to project distributions.
