Mineral Rights Value in New Mexico

Finding mineral rights value in New Mexico can seem challenging or next to impossible.  There is so much 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 you could use to determine mineral rights value in New Mexico but unfortunately those do not exist for mineral rights.  Here are a few things to guide you in your search to learn mineral rights value in New Mexico.

Understanding Mineral Rights Value in New Mexico

First it is important to understand that, minerals rights value is an ever changing number.  In the current market with COVID-19 virus and the oil and gas marketplace changes, it is important to note those factors do have some affect on value.  They are, only one of the many factors that buyers look at when determining mineral rights value in New Mexico.  The other factors buyers may consider include:

  • royalties
  • lease
  • operator
  • location
  • future upside
  • decline curves
  • amount of acreage owned

It is a combination of all of that information that a buyer will look at to determine what dollar value they personally will put on your mineral rights.  In order to get the best understanding of your mineral rights value in New Mexico you need offers from multiple buyers.  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 look at.  First based on the complicated marketplace that mineral rights are in we suggest using an experienced broker to help guide you through the process of selling.  We recommend US Mineral Exchange, they are a reputable company with years of positive experience in the marketplace.   The factors that will have the most affect on value are if your mineral rights are not leased or producing, if they are leased but not producing or if they are leased and producing.

Minerals Rights that are NOT Leased or Producing

If you have mineral rights in New Mexico that are NOT leased or producing that means that there is currently no lease nor is there any royalty income being generated.  You may have had a lease in the past but it has since expired.  You may have never had a lease on the minerals.  It may also be that you do not know if you are leased.  If you just found out about owning mineral rights you may not have an answer to if you are leased and/or producing.  The typical mineral rights value in New Mexico from the sale of non leased or producing minerals can vary greatly.  It can be as little as $100/acre up to $1,000 or more per acre.  Consulting an experienced broker can help you understand where your minerals may fall in that range.

Mineral Rights that ARE Leased but NOT Producing

If you have a lease on your mineral rights, it means a company offered to lease your minerals.  You then received a price per net mineral acre as a leasing bonus.  They do this so that they have the option to drill a well on the acreage during the lease term if they so desired.  If no well is drilled during the lease term then the lease expires and your mineral rights are available for leasing again.  Typically the rule of thumb for value on leased only minerals is 2 to 3 times the price per acre you were paid when you leased.  For example, if you were paid $500/acre when you leased, a range of value for sale may be $1,000 to $1,500/acre.  This is a general guide as they may be worth more with all factors taken into consideration.  This is how using an experienced brokerage firm 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 that means you are receiving a monthly royalty check.  There are a few general guidelines using your royalty income to get a large range of mineral rights value.  Typically if you find the average of your monthly royalty amount, your minerals could be worth a 4-6 year payback of that amount.  You can use our royalty calculator below to help find the potential mineral rights value in New Mexico for your minerals.  This value can be very skewed so we again recommend using an experienced brokerage firm, such as US Mineral Exchange to ensure your minerals are not worth much more and you do not leave any money on the table when you sell.

ROYALTY CALCULATOR

Most buyers will pay between 4 years and 6 years of production based on the average monthly royalty check you receive. Enter your average monthly royalty check below to see how much your royalty could be worth.

One thing to point out is that the royalty calculator above will only give you the potential value for mineral rights that are producing royalty income.  It does not take into consideration things like, if more wells are drilled or if your minerals are in a GREAT location.  That is why it is so important to get multiple offers to make sure you get the highest value.  Doing so will finding that one buyer that will pay the most for your minerals.  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 getting your minerals in front of the most buyers is the best way to ensure the most from your sale.  As an example, if you were going to sell your car, you could put a sign on it in your driveway and hope someone sees it and makes an offer.  Someone may drive by and offer you $1,000 for it and that seems like a great price.  Before you accept that, if you want to get the most, you would reach out to sites like Carvana or Cars.com to get competing offers.  Getting multiple offers will ensure you sell for the highest price possible.   By getting your minerals in front of the largest audience you ensure you will find the one buyer that will pay the most.

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!

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