Principles of Payout Accounting

Principles of Payout Accounting

This course is designed to introduce you to the very dynamic concept of “Payout” and its impact on various Oil and Gas industry functions. Many individuals have no idea what this function does or how important this activity is to the stakeholders it supports. In this four hour course we will discuss Payout and what it means, review basic documents needed to identify and track payout, identify the components of a payout calculation and what to do with them, and finally calculate a full payout. This principles class will provide a basic understanding of the payout process.

Course Content

This course covers the following topics:

Overview of Payout Accounting

  • Payout Terminology
  • Concepts
  • Circumstances Resulting in Payout Calculations


Contracts, Well Cards and Other Source Documents

  • Payout Situations
  • Basic JOA Payout Language
  • Evaluate Oil and Gas Documents to find necessary Payout
  • Information


Components of a Payout Calculation

  • Essential Data to track Payout
  • Calculate NRI
  • Expense Categories for Penalties
  • Distribution Procedures


Calculate Payout

  • Analyze Oil and Gas Documents
  • Example Agreements


Learning Objectives

Upon completion of this course, you will be able to:

  1. Explain Payout and differentiate circumstances that need a Payout calculation
  2. Summarize the impact Payout accounting has on stakeholders
  3. Demonstrate knowledge of basic agreements and ownership impacts
  4. Apply payout concepts to an actual agreement and setup Payout for a test case


Program Level: Basic       CPE Credits:  4 hours      Delivery: Group-Live       Prerequisites: None

Advance Prep: None         Field of Study: Accounting

Cost: See pricing on registration opportunities, and for custom private courses contact