What Do Oil and Gas Mineral Rights Buyers Do Anyways?
If you own land, even just the land around your house, farm or ranch, then there is a possibility that there are minerals, oil, or gas beneath your property that are valuable. Now, you have a decision – what do you want to do with the potential funds that you are sitting on? Some decide to get monthly royalty checks, some decide to sell all their gas and mineral rights, and some decide to sell only some.
Now the first option involves no sale, merely a rental, so to speak, but the second and third options both involve someone selling, and therefore, someone buying.
But what do oil and gas mineral rights buyers do, really? Let’s learn a bit more about the industry that Clear Fork Royalty is leading, and how we got here.
Selling Your Mineral Rights
Once you decide to sell all or some of your mineral rights, you will probably start looking for a reputable and highly-reviewed mineral rights buyer or a company that buys mineral rights.
Some of these interests might be ‘legacy’ or something that has been in your family for decades, or maybe they are new, from a recent well on your property. Regardless, the next step after deciding to sell your minerals and royalties requires an experienced company who can explain the process, benefits, pitfalls, difficulties, and ultimate payout to you in plain terms.
And that’s where Clear Fork Royalty comes in, our process was made to be clear, simple, and honest.
Here are just a few of the reasons people may decide to sell their mineral rights:
· Tax Reasons: Selling your mineral rights enables you to take advantage of historically low capital gains tax rates and strategic property exchanges.
· Lessening Production: Your oil and gas won’t last forever and with each month, they become a more and more depleted resource. As production decreases, so will your royalties, which means it might be a good time to sell when you notice production lessening.
· Timing: Maybe no more drillers will want to develop on your land, or maybe they will in a number of years. Sometimes selling your mineral rights is simply a way to get money now instead of hoping for it later, especially if the market drastically changes for the worse, or if changes in the political realm make drilling more difficult or expensive.
· The Fluctuating Oil Market: Price fluctuations in the oil and gas industry are common and often swing largely, and that means the size of your monthly royalty checks is highly volatile too. Some prefer to sell their mineral rights and know exactly how much they are getting instead of getting unreliable checks each month. Many prefer to sell when oil prices are high and avoid losing out later.
· Keeping it Simple: Some of our clients like the simplicity and ease of getting a lump sum instead of a monthly check which they have to review, file, etc. The paperwork associated with mineral rights can seem endless to some, and the time they waste checking and filing isn’t worth it. Instead, some prefer a lump sum that they can invest all at once, or use, instead of waiting on smaller cash bundles.
· Diversify your Investments: Diversification lets you increase your ability to invest in other industries like stocks, bonds, real estate, etc. Many of our clients want to invest but cannot because they are only getting monthly checks.
Buying Mineral Rights
After you reach out to Clear Fork Royalty, you’ve done the hardest part – because we do the rest for you.
First, we’ll evaluate what your mineral and royalty rights are worth through our impartial process. We want to make sure you understand exactly what you own, the potential royalties associated with it, as well as the fluctuations that the market will always bring.
If we are just starting our work together, then our team will walk you through the next steps and outline the necessities for the type of property you own as well as the type of royalties you own.
Usually, this includes reviewing the check stubs and production information from your most recent royalties – this helps us give you the very best offer and the most accurate pricing.
Our team will complete a full evaluation of your royalties and interests, taking into account locations, future trends, additional drilling, the history of production, current costs and projected future costs and prices in the industry, risk, and more.
Next, you will receive an offer from us, review it at your leisure and make your decision. If you accept our offer, simply sign the documents, send it back, and we will complete our due diligence process without any hassle or extra work for you.
The final step? You get your money either as a check or a wire transfer. Simple, right?
That is the Clear Fork Royalty goal; to get you the very best, fast offer that leaves you satisfied, all with little to no hassle and great customer service.