A royalty check stub can look like a wall of codes and tiny numbers, but it's really just one calculation repeated for each well: take what the oil or gas sold for, multiply by your share, then subtract taxes and any allowed costs. Once you can find those pieces, you can check any payment in a couple of minutes.
The header: who, when, and how much
The top of the statement identifies the basics: your owner number (your account with that operator), the check number, the payment period, and the operator or payer issuing the money. Keep your owner number handy — you'll need it any time you call owner relations.
The line items, column by column
Below the header, each row is one well and one product. Working left to right, you'll typically see:
- Property / well / lease — the name and an ID number for the well or unit you're paid on.
- Product — oil, gas, NGL (natural gas liquids), or condensate, often shown as a code.
- Production / sales date — the month the product was actually sold. Operators pay in arrears, so this is usually two to three months before the check date.
- Volume — how much was produced and sold, in BBL (barrels) for oil or MCF / MMBTU for gas.
- Price — the sales price per unit for that month.
- Gross value — volume × price: the total the well's production sold for.
- Decimal / interest — your decimal interest, the share from your division order.
- Owner gross value — gross value × your decimal: your slice before deductions.
- Taxes — severance (production) tax the state takes off the top.
- Deductions — post-production costs (gathering, compression, processing, transportation), if your lease allows them.
- Net value — what's actually paid to you for that line.
Codes and abbreviations you'll see
- BBL — barrel of oil (42 gallons).
- MCF — one thousand cubic feet of gas. MMBTU — gas priced by heat content.
- NGL — natural gas liquids (ethane, propane, butane) sold separately from dry gas.
- SEV / PROD TAX — severance or production tax.
- GATH / COMP / PROC / TRANS — gathering, compression, processing, transportation deductions.
- INT TYPE — your interest type, such as RI (royalty interest) or ORRI (overriding royalty).
How to verify a payment
Pick one line and rebuild it: multiply volume × price to confirm gross value, multiply that by your decimal to get your share, then subtract the taxes and deductions shown. The result should match the net. To estimate what a check should look like from production and price, use the Royalty Income Estimator. If the numbers don't line up — or a check is missing entirely — see why royalty checks change.
Frequently asked questions
What do BBL and MCF mean?
BBL is a barrel of oil (42 gallons). MCF is one thousand cubic feet of natural gas; some operators price gas by heat content in MMBTU instead.
Why are there deductions on my check?
Severance taxes go to the state, and post-production costs cover moving and processing the product. Whether you can be charged for post-production costs depends on your lease language.
What is my "decimal" on the stub?
Your decimal interest — your exact share of that well's revenue, taken from your division order. The operator multiplies the well's gross value by it to find your portion.
Keep going: see why your check changed, understand royalty taxes and depletion, or browse the plain-English glossary.
Educational information only. This article is not legal, tax, or financial advice. For guidance on your specific situation, consult a licensed professional.