Finding mineral rights value in New Mexico can seem challenging , especially in Lea and Eddy counties. There is so much confusing information out there! How do you know where to look and who to trust? It would be great if there was a site like the MLS or Zillow that could help determine mineral rights value in New Mexico. Unfortunately those sites do not exist for mineral rights. This guide will provide you additional information to help you better understand the value of your mineral rights value in New Mexico.
Understanding Mineral Rights Value in New Mexico
First it is important to understand that, minerals rights values are an ever changing number. In addition, there are only a couple of counties in New Mexico that can expect to see high values. Those counties are:
- Lea County, New Mexico
- Eddy County, New Mexico
Have you received a recent offer? If you own interests in Lea or Eddy county it is very likely you have. For years, New Mexico has accounted for a significant amount of US Production. The great news is activity in these counties is again picking back up. In addition, the oil and gas marketplace in general is improving. This is great news for mineral and royalty owners in Lea and Eddy New Mexico! If you have received an offer, this is why.
Factors Affecting Mineral Rights Value in New Mexico
This is not an exhaustive list but it includes many of the most common factors that affect the value of mineral and royalties in Lea and Eddy, New Mexico:
- Permits filed
- Rig Activity
- Oil and Gas prices
- Where are your minerals located?
- Are you leased?
- Who are you leased to?
- What is the royalty rate?
- Are you receiving income?
- Have you received any new Division Orders?
- How many acres to you own?
These factors will have an impact on the value of your mineral rights in New Mexico. If you have received an offer, each buyer will place different values on the factors above. How do you find the buyer who values your rights the most? You have to get it in front of as many buyers as possible! In the mineral rights market, as the old saying goes, your minerals are only worth what a buyer is willing to pay for them.
Estimating Mineral Rights Value in New Mexico
In order to get an idea of what your mineral rights may be worth there are a few things to consider. If you are receiving offers this is an indication of value. It is at least an indicator of value to a single buyer. Like selling a used car though, how do you know which dealer will buy your car for the most? Or is it better to sell to a private seller? Unfortunately, most people take the first offer and leave huge dollars on the table. Don’t let this happen to you.
When selling mineral rights in Lea and Eddy Counties in New Mexico, we recommend US Mineral Exchange. They are a highly reputable company with over a decade of experience working with mineral and royalty owners just like you. A quick peek at their Google Reviews and you will see many satisfied customers over the years.
Minerals Rights that are NOT Leased or Producing
If you have mineral rights in New Mexico that are NOT leased or producing this means that your value is limited. Without a lease or income, the value of your mineral rights will be very low. If you have never been leased, there will very likely not be any demand for your mineral rights until you are. If your lease recently expired, this simply means the demand that once was is no longer. Your best bet in this case is to hold onto the mineral rights until you are approached to lease and then reassess your situation.
Mineral Rights that ARE Leased but NOT Producing
If you have a lease on your mineral rights you are in a little better situation. This means that at one time an oil and gas operator was looking to drill a well on your property. At the time of your lease, you received an offer on a net mineral acre basis to lease your mineral rights. This was called your lease bonus. This lease provided the operator the option but not the requirement of drilling a new well. If a well is not drilled during the lease term the lease expires and you can lease again at a later time.
Typically, the rule of thumb for value on leased only minerals is 2 to 3 times the price per acre on your lease bonus. For example, if you were paid $1000/acre when you leased, a range of value for sale may be $2,000 to $3,000/acre. This is a general guide as they may be worth significantly more with all factors above taken into consideration. This is why using an experienced broker can help assist you in getting the most value when you sell your mineral rights in New Mexico.
Mineral Rights that ARE Leased and Producing
If your minerals are leased and producing this means you are receiving a monthly royalty check from oil and gas production. If you have recently received an offer it is likely because this is the position you are in. You leased or inherited your interests, a well was drilled and now you are getting monthly income. The question for mineral and royalty owners who are in this situation is what am I being paid on and is there any new production coming my way soon? With little chance of new wells or if you are in an area that is outside the heart of the activity , a general guideline is 4-6 years of current income. Try the royalty calculator below. This will help you find the value of mineral rights on New Mexico.
However, please, please note that if you do not know the future value of your mineral rights, this calculation may be very low. Please reach out to an experienced oil and gas mineral and royalty broker to ensure your minerals are not worth much more and you do not leave any money on the table when you sell.
Again, the royalty calculator above will only give you the potential value for mineral rights that are providing you royalty income. It does not take into consideration things like, if more wells can or will be drilled or if your minerals are in a GREAT location like Eddy and Lea counties. That is why it is so important to not accept the first offer but get your interests in front of thousands of buyers who will compete for them. Be sure not to get caught in the trap of selling to the first mineral buyer that makes you an offer. Your minerals could potentially be worth so much more!
Maximum Mineral Rights Value in New Mexico
As a mineral owner seeking the highest mineral rights value in New Mexico, especially in Eddy and Lea, getting your minerals in front of the most buyers is the best way to ensure the highest sales price. For example, if someone knocked on your door and offered you $XXXX amount for your house, you would decline that offer and contact a real estate broker to determine if that was a fair offer. Selling your mineral rights should be no different. Before you accept any offer, if you want to get the most, you need to get your property in front of thousands of buyers, just like selling a home.
Still have questions regarding mineral rights value in New Mexico? Fill out our contact form below, we would love to help guide you or answer any questions you have about selling your minerals. We will quickly respond to your inquiry!
