I received my first royalty check from EQT recently after almost 10 years. There was no prior information sent or “Division Order”. Just showed up in the mail. I am 1/8 owner of almost 53.5 acres. The information attached to the check notes that the Total well net revenue is $209,749.10 for the month. I got a $216.87 after taxes. I am supposed to receive 15% royalty of market value. Is this the correct amount?
Company drilling schedules vary on many factors, but generally I’d be happy they drilled it in a high(er) gas price environment. Also, one of the main factors you’re up against is the spacing…with a 53.5 gross tract I’d venture to say you’ll space into 3 or 4 wells at least. Maybe they are bringing wells online in phases. Anyway here’s the math: 53.5 Gross / 8 = 6.6875 NMA * .15 / .125 = 8.025 NRA / 960 (varies by unit) = 0.001044922 NRI * 209,749.10 = $219.17. The unit is prob a little smaller to account for taxes but I’d say it’s in the ballpark. You’ll see an increase for a few months and then a sharp decline; same can be said of other wells.
Most check stubs will have production and price received which is tied to marketing contracts. If you’re unsatisfied and want to increase your vetting to the max, you can audit the operator comparing to reported production and nymex gas allowing for reasonable differentials.
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Thank-you this helps.
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