DEFINITION of 'Gross Acres'

The amount of leased real estate, that a petroleum and/or natural gas company has a working interest in. Gross acres is different from net acres if a company shares its working interest with another company or companies. The company's true interest is expressed in net acres, which is the company's percentage interest, multiplied by the gross acreage. If a company holds the entire working interest, its net acreage and gross acreage will be the same.

BREAKING DOWN 'Gross Acres'

The number of gross acres a company has, tells investors something about the company's size, market position and current activity, but it does not tell the whole story. What is the company doing with that acreage? Is it drilling wells and at what pace? How many barrels of oil is the area producing and how many is it expected to produce?


Larger companies will usually have an interest in hundreds of thousands of gross acres, while smaller ones may only have an interest in tens of thousands of gross acres. The largest companies will have total holdings of millions of gross acres.

RELATED TERMS
  1. Recovery Property

    A specific class of depreciable real estate. Recovery property ...
  2. Prior Probability

    The probability that an event will reflect established beliefs ...
  3. Gross Income

    1. An individual's total personal income, before accounting for ...
  4. Gross Profit

    A company's total revenue (equivalent to total sales) minus the ...
  5. Gross Margin

    A company's total sales revenue minus its cost of goods sold, ...
  6. Gross Profit Margin

    A financial metric used to assess a firm's financial health by ...
Related Articles
  1. Managing Wealth

    3 Of The Most Lucrative Land Deals In History

    Some modern real estate purchases may seem overly expensive, but they are nowhere close to the priciest land deals in history.
  2. Investing

    Whiting Petroleum Second Quarter 2010 Recap

    Whiting Petroleum has increased its position in emerging shale oil plays.
  3. Investing

    Understanding Gross Sales

    Gross sales represents the overall revenue of a company through its sales activities.
  4. Investing

    Continental Resources Bets Big On Williston Basin In 2010

    Continental Resources moved to develop its huge holdings in the Williston Basin and also entered the Niobrara Shale in 2010.
  5. Investing

    Woodford Shale Second Quarter 2010 Update

    The Woodford Shale saw spotty development in the second quarter of 2010, depending on whether the exploration and production company was in the wet or dry gas area of the play.
  6. Small Business

    How Gross Margin Can Make or Break Your Startup

    Find out how your startup's gross margin can impact your business, including why a mediocre margin may spell disaster for a budding business.
  7. Investing

    Natural Gas Industry: An Investment Guide

    Investors looking into this industry are faced with a confusing amount of information. We explain the important concepts and terms.
  8. Investing

    Small Cap Permian Players To Watch

    The Permian Basin will remain an active area for oil and gas exploration and development in 2012. Investors should examine the many small capitalization players active in this basin.
  9. Investing

    How To Value A Real Estate Investment Property

    Two common methods for real estate valuation are the discounted net operating income and gross income multiplier approaches.
RELATED FAQS
  1. What is the difference between gross margin and gross profit?

    Understand the difference in definitions between gross margin and gross profit, and learn what each represents as a metric ... Read Answer >>
  2. Does gross profit include tax?

    Find out what gross profits are, how they are calculated, how they are interpreted by investors and whether taxes are taken ... Read Answer >>
  3. What is the point of calculating gross sales?

    Learn how doing simple gross sales and gross profit calculations can serve to help change a company's profit ratio and overall ... Read Answer >>
  4. Are gross sales and taxable gross sales the same thing?

    Learn the difference between gross sales and taxable gross sales and how these terms relate to the profit and tax liability ... Read Answer >>
  5. What is the difference between revenue and cost in gross margin?

    Discover the differences between revenue and cost in gross margin, along with an explanation of various measures of profitability. Read Answer >>
  6. What can gross sales tell you about a business?

    Learn more about gross sales and net sales. Find out what the gross sales figure reveals about a business and how investors ... Read Answer >>
Hot Definitions
  1. Cover Letter

    A written document submitted with a job application explaining the applicant's credentials and interest in the open position. ...
  2. 403(b) Plan

    A retirement plan for certain employees of public schools, tax-exempt organizations and certain ministers. Generally, retirement ...
  3. Master Of Business Administration - MBA

    A graduate degree achieved at a university or college that provides theoretical and practical training to help graduates ...
  4. Liquidity Event

    An event that allows initial investors in a company to cash out some or all of their ownership shares and is considered an ...
  5. Job Market

    A market in which employers search for employees and employees search for jobs. The job market is not a physical place as ...
  6. Yuppie

    Yuppie is a slang term denoting the market segment of young urban professionals. A yuppie is often characterized by youth, ...
Trading Center