How much are mineral rights worth

How much are mineral rights worth

We speak to a lot of mineral owners.  One of the most common questions we receive is, “how much are mineral rights worth?”  A lot of mineral owners want to sell mineral rights, but don’t want to sell below market value.   Figuring out how much are mineral rights worth isn’t easy.  Most websites are just mineral rights buyers.  They want to convince you that your property is worth a lot amount so they can pay you less money.

If you want to know how much are mineral rights worth this free guide will help.  We are going to walk you through everything you need to know about how much mineral rights are worth.

Current value vs Future Value

When you want to know how much mineral rights are worth, it’s important to understand current value vs future value.  Many mineral owners don’t understand the difference.  The value of mineral rights is based on what a buyer is willing to pay today for your property.  Most mineral owners have a very unrealistic view of mineral rights value.  They believe their property is worth way more than it is because it “will be worth more in the future” and “when oil prices go up it will be worth more”.

It’s very important that you approach the value of mineral rights with a realistic view.  Your property very well may be worth more in the future, but buyers don’t pay what your property could be worth some day,  they pay what it’s worth today.

Competition is key!

When we get asked how much are mineral rights worth, we always tell mineral owners that the value is based on getting your property in front of buyers.

When you want to sell mineral rights, you have two options.  You can sell mineral rights on your own or you can work with an expert.  A lot of mineral owners try to do it on their own and they end up selling far below market value.   When you sell mineral rights on your own it involves reaching out to buyers online.   You’ll fill out a few forms and provide your details, and then wait for an offer.   The problem with this approach is that you simply can’t reach enough buyers.  There are thousands of mineral rights buyers out there.   You could spend weeks contacting buyers and not even talk to 1% of them.

The key to getting maximum value for your property is competition.  When buyers know they are competing against other buyers, this drives the price up.   This competition will force buyers to come in with the best possible price.   You will always put more cash in your pocket by getting a lot of buyers to compete for your property than you will on your own.

Sell mineral rights for maximum value

The best way to get your property in front of thousands of buyers is by listing it at US Mineral Exchange.  US Mineral Exchange is a well known company in the Oil and Gas industry.  They will quickly get your property in front of buyers.  In addition, they walk mineral owners through the entire process and ensure everything is taken care of.   When mineral owners want to know how much are mineral rights worth we always recommend listing at US Mineral Exchange.  You’ll quickly get offers on your property so you can find out how much mineral rights are worth.

Estimating how much are mineral rights worth

Disclaimer:  If you have an offer to sell mineral rights do not use the guidelines below to gauge if the offer is fair.  The only way to ensure you are getting a fair offer to sell mineral rights is to get the property in front of thousands of buyers.  You can then get multiple offers to ensure the offer you have is a fair one.  The guidelines below are just a general rule of thumb when you want to know how much are mineral rights worth.

To estimate how much mineral rights are worth you have to first look at what stage your property is in.  Mineral rights go through the following stages.  Each stage is worth progressively more money.

Non-Producing / Non-Leased —>  Leased —> Producing

 Non-Producing / Non-Leased:

At this stage in the game there is not a lot of demand for your property.  An oil and gas operator has not expressed an interest by leasing your property.   Your property still needs to be leased and drilled before any royalties are produced.  Getting your property leased establishes that an operator might drill.   Without a lease agreement it means it will likely be 5 years to decades before any royalties are produced.   Your property could be worth anywhere from nothing to a few hundred per acre.  Demand will be low and it will take a long time to sell your property.

Leased:

If your property is leased that’s a very good sign.  It means an oil and gas operators sees value in drilling.   When you are leased there will be a lot more buyers interested in buying your mineral rights.  This means you will get a better price and be able to sell mineral rights more quickly.  Generally speaking, you can expect to sell for about 2x to 3x the amount of the lease bonus you received.

Producing:

If you receive an oil and gas royalties check each month you have a producing property.  There will be a lot of demand for your property.  You can expect to sell quickly.  As a general rule of thumb for mineral rights value you can expect to get 4 years to 6 years times the average amount you receive each month.   If you want to know how much are mineral rights worth for producing properties you can enter the average amount you receive in this oil royalties calculator:

  

Questions about how much are mineral rights worth?

If you want to know more about how much are mineral rights worth we can help.  We speak to a lot of mineral owners who are curious about how much are mineral rights worth.   To get answers about your property simply fill out the form below.  We’ll quickly answer your questions about how much are mineral rights worth and get you pointed in the right direction.

Mineral Owner Inquiry Form

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