How it all works
We have a simple and straightforward process to get you the most our of your mineral or royalty interest.
Upon receiving your information, we do a preliminary analysis to determine the value of your mineral interest, the past and future drilling activity, and the likely price you will receive for your interest.
If you are interested in moving forward, we send a simple, one-page agreement which provides a consulting fee if and only if you decide to sell your interest and it gets to the closing table.
Offer and Acceptance
Over the next two weeks, we strategically solicit offers from the ultimate end buyers who are willing to pay the most for mineral and royalty interests in your area. We help you understand who these buyers are and the pros and cons of each offer.
After a typical due diligence period by the buyer, we help guide you through the entire process from acceptance to closing, answering any questions you have along the way.
Why Sell Your Mineral Rights?
We often hear the advice that mineral rights owners should never sell their interests for any reason. This is bad advice! The decision of whether to sell your mineral or royalty interest is a personal decision and depends on your unique circumstances. There may be an important economic reason (you received an offer that is too good to pass up), an important personal reason (you need the money to start a business or pay off debts), or an important management decision (it has become too complex to manage or you don’t want to pass the management burden on to your kids). The result is that you shouldn’t let someone tell you that you should never sell your interest because the circumstances are not always the same.
Timing: Many mineral right owners decide to sell their interests simply because they don’t want to wait years or decades for their lands to be drilled. It is a myth that leasing your mineral rights means the company is about to drill a well. Many lease brokers or the oil and gas operators themselves simply lease as many lands as possible to build a bigger portfolio of lands for potential wells. The reality is that oftentimes the leases expire without any drilling of any kind. Mineral owners who are not willing to wait years or decades for production on their lands might decide to cash out now and invest the money in any vehicle.
Gamble: Advocates of holding mineral rights sometimes forget that owning mineral rights can be a gamble. As noted above, it is possible that an oil and gas operator will never drill on your lands. Even if they do, there is no assurance that the drilling will be successful. If the operator drills a dry hole (meaning there is no commercial quantity of oil or gas that can be produced from the lands), your mineral rights could drop significantly. In our experience, the best time to sell is generally any an operator has filed an application for permit to drill on the lands, but before any actual drilling starts. This is because the filing of such applications drives the purchase price up based on speculation and the mineral owner can cash out to avoid the risk of poor production on the lands. Once the lands are developed, mineral buyers will evaluate the property based on production and value that could attributed to the property by speculation will be lost.
Retirement / Estate Planning: Many mineral rights owners choose to sell during retirement. Cashing out of your mineral rights can provide a good nest egg for retirement and lower the risk that your investment drops in value. These mineral owners may also decide that converting the mineral or royalty interest into cash makes estate planning significantly easier. As royalties depreciate over time and the interest is further broken up once passed to the next generation, it oftentimes makes sense to sell the interest to avoid the hassle of managing the interest.
Financial Need: As noted above, there are many circumstances where a mineral owner may decide it is better to sell the interest because of some other need. Certain financial situations, such as unforeseen medical bills, high-interest debts, or loss of job could be a strong incentive to sell your mineral interest. Or, a mineral owner may simply decide the money from selling could be better used for something else, such as starting a business, paying off a mortgage, or helping kids with college tuition.
It’s a Personal Decision
Deciding whether to sell your mineral rights or hold onto them is a difficult question. If you receive conflicting advice over whether to sell, remember that it’s your decision. You have your unique circumstances that factor in your decision to sell or hold.
Frequently Asked Questions
Why should I sell my mineral rights now?
There are many different reasons to sell your mineral rights – and each seller is different. You might want cash to improve your home, pay off debt, finance your children’s education or realize the cash value of your assets today. You’ll receive a lump sum upfront, rather than the traditional smaller monthly royalty payments paid over a long period of time.
Who can sell
We work with all types of sellers and interests from large to small in most oil and gas producing areas. We will inform you of how we value your assets, as well as why selling your assets may be the best choice for you. No matter where your mineral rights are located, we are confident we can get you a fair and competitive offer.
Here are some different types of mineral rights & royalty sellers:
- Heirs and Devisees
- University Endowments
- Trusts: Charitable & Estate
- Mineral Management Companies
- Land Brokers
- Timber Companies
- Law Firms
- Insurance Companies
- Exploration & Production Companies
What are the different types of mineral and royalty interests?
There are three primary types of Mineral Rights.
Mineral rights are the ownership of all the oil and gas lying below the surface of the property, as well as the right to explore, drill, and produce oil and natural gas on that property or to lease such rights to a third party. Typically, mineral rights are perpetual. If mineral rights are leased, they become a non-cost bearing interest. If they are unleased, they can be force-pooled or the owner can voluntarily participate in the cost of drilling the well.
Overriding Royalty Interests (ORRI)
Overriding royalty interests are royalty interests that burden the leasehold or working interests of a lease and represent the right to receive a fixed percentage of production or revenue from production from a lease. Overriding royalty interests are non-perpetual, expiring when the lease terminates. They are non-cost bearing interests.
Non-Participating Royalty Interests (NPRI)
A non-participating royalty interest is the right to all or a portion of the lessor’s royalty interest only. It does not include the right to execute a lease and receive bonus or rental payments. They can either be perpetual or non-perpetual depending on how they were created. They are non-cost bearing interests.
How long does the selling process take?
Typically, we can do a preliminary analysis in 2-3 business days. Once we receive an executed agreement, we immediately begin soliciting offers from the highest-paying mineral buyers. They typically take about two weeks to do their own analysis and provide an offer. Once you decide to accept an offer, most mineral buyers have a 30-day due diligence and closing period.
What if my land is non-producing?
We work with all types of acreage, whether producing or non-producing. Because offers are generally based on future wells to be drilled, in most cases, the offer price won’t depend on whether the interest is producing or not. However, some mineral buyers can expedite their due diligence if the interest is producing because the ownership is generally easier to confirm.