An Overview of Volumetric Production Payments (VPPs): Issues and Considerations | Practical Law

An Overview of Volumetric Production Payments (VPPs): Issues and Considerations | Practical Law

A Practice Note discussing the use of volumetric production payments (VPPs) as an alternative financing mechanism to the traditional financing sources oil & gas producers typically use (for example, reserve based loans and high yield debt). This Note also discusses the benefits of VPPs to producers and capital providers and the conditions a VPP must satisfy to qualify for these benefits.

An Overview of Volumetric Production Payments (VPPs): Issues and Considerations

Practical Law Practice Note w-034-8095 (Approx. 12 pages)

An Overview of Volumetric Production Payments (VPPs): Issues and Considerations

by Kraig Grahmann, Michael Threet, Ellen Conley, and Roy Schwartz of Haynes and Boone, LLP, with Practical Law Oil & Gas
MaintainedUSA (National/Federal)
A Practice Note discussing the use of volumetric production payments (VPPs) as an alternative financing mechanism to the traditional financing sources oil & gas producers typically use (for example, reserve based loans and high yield debt). This Note also discusses the benefits of VPPs to producers and capital providers and the conditions a VPP must satisfy to qualify for these benefits.