Net Acres

AAA

DEFINITION of 'Net Acres'

The amount of leased real estate that a petroleum and/or natural gas company has a true working interest in. Net acres express actual percentage interest, when a company shares its working interest with another company; the total acreage under lease by a company is referred to as gross acres. Net acres account for 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.

INVESTOPEDIA EXPLAINS 'Net Acres'

The number of net acres a company has invested in, 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? The larger the company, the more net acres it will have.

RELATED TERMS
  1. Oil Shale

    A type of sedimentary rock composed chiefly of a combination ...
  2. Gross Acres

    The amount of leased real estate, that a petroleum and/or natural ...
  3. Crude Oil

    A naturally occurring, unrefined petroleum product composed of ...
  4. Barrel Of Oil Equivalent (BOE)

    A term used to summarize the amount of energy that is equivalent ...
  5. Sour Crude

    The name given to barrels of crude oil that do not meet certain ...
  6. Upstream

    Operations stages in the oil and gas industry that involve exploration ...
Related Articles
  1. Investing Basics

    Oil: A Big Investment With Big Tax Breaks

    Oil and gas investments can provide unmatched deduction potential for accredited investors.
  2. Active Trading

    Oil And Gas Industry Primer

    Before jumping into this hot sector, learn how these companies make their money.
  3. Active Trading

    Uncovering Oil And Gas Futures

    Find out how to stay on top of data reports that could cause volatility in oil and gas markets.
  4. Active Trading

    Unearth Profits In Oil Exploration And Production

    Drill down into financial statements to tap into the right companies and let returns flow.
  5. Active Trading

    Oil As An Asset: Hotelling's Theory On Price

    Not sure where oil prices are headed? This theory provides some insight.
  6. Mutual Funds & ETFs

    Top Short Leveraged Oil ETFs, ETNs

    Think oil will continue to fall? Consider these leveraged ETFs and ETNs.
  7. Professionals

    Is it Safe to Invest in MLPs Again?

    The best bet right now for investors seeking to play a rebound in the price of oil may very well be ETFs that invest in energy MLPs.
  8. Investing

    Is It Possible To Trade Bitcoin Options?

    Options trading in bitcoins is a good way to insure or hedge one's risks or earn profits from volatility and speculation, but there still are risks.
  9. Options & Futures

    Forecast Of Oil Production by Country in 2015

    Supply is still ahead of demand and looks to stay ahead for most of 2015. Until production noticeably weakens, that situation is unlikely to change.
  10. Economics

    What is Earnest Money?

    An earnest money deposit shows the seller that a buyer is serious about purchasing a property.

You May Also Like

Hot Definitions
  1. DuPont Analysis

    A method of performance measurement that was started by the DuPont Corporation in the 1920s. With this method, assets are ...
  2. Asset Class

    A group of securities that exhibit similar characteristics, behave similarly in the marketplace, and are subject to the same ...
  3. Fiat Money

    Currency that a government has declared to be legal tender, but is not backed by a physical commodity. The value of fiat ...
  4. Interest Rate Risk

    The risk that an investment's value will change due to a change in the absolute level of interest rates, in the spread between ...
  5. Income Effect

    In the context of economic theory, the income effect is the change in an individual's or economy's income and how that change ...
  6. Price-To-Sales Ratio - PSR

    A valuation ratio that compares a company’s stock price to its revenues. The price-to-sales ratio is an indicator of the ...
Trading Center