Determining mineral rights value in Oklahoma sounds like something that should be easy to do. If you have mineral rights it seems as if there should be some sort of graph that will tell you what they are worth. Unfortunately with mineral rights that is not the case. The value of mineral rights is determined by numerous factors that must all be taken into consideration to have a full picture of the potential value. Even when you have all the information each and every mineral buyer will value properties differently. The information below should help you in your pursuit in determining mineral rights value in Oklahoma.
How do I know what I own?
There are many different ways to go about determining what you own when it comes to mineral rights. If you are in pay, meaning you are receiving a monthly royalty check that is one way to help identify where and what you own. If you are not in pay, but your mineral rights are leased, you should have received documentation showing the details of the lease agreement and how many net mineral acres you own specifically. It is possible you were not the one that leased the acreage, and if that is the case you can reach out to the company that leased the mineral rights and they can provide you with documentation of the lease.
If you are not in pay, nor are your mineral rights leased, that is typically the most difficult position to be in when you wish to understand exactly what you own. Determining what is owned at that point can take the work of a landman or another individual familiar with running title and tracing ownership through court documents. When all you have regarding your ownership is a deed, and the deed is in your name, that is a good start. If what you have is a deed in an ancestors name, that would be next best. However, if you just found out you own mineral rights and you have no paperwork or documentation at all, that is when you would likely need to enlist the help of a trained professional to dig in through court documents to help determine your ownership.
How do I determine what my minerals are worth?
Once you have a better understanding of what you own, going about determining what your mineral rights may be worth can be a simpler process. There are numerous factors that play into mineral rights value and mineral buyers will value each properties differently based on what information they find most important. Each and every mineral owner will have a different set of factors that affect their ownership, so there is no easy formula to plug information into to determine the exact value of your mineral rights. Some of the factors that go into determining mineral rights value are; location, what operators are in the area, the operator that is paying you, wells drilled on the acreage, lease terms, decline curves on the wells. Those are just a few of the factors buyers take into consideration when deciding the value or what they are willing to pay for mineral rights.
There is a way to get an idea on range of value if your mineral rights are leased or if your mineral rights are in pay. In pay meas you receive a monthly royalty check. If your mineral rights are leased but no wells have been drilled, meaning you are not receiving a monthly check for royalties, you can get an idea of range of value also. The bottom line on mineral rights value is no matter how you go about determining what you believe to be the true value of the mineral rights you own, they truly are only worth what a mineral buyer is willing to pay for them. The only true way to know what any mineral rights are worth at any given time is by putting them on the market and getting competing offers from multiple buyers to get a range of value.
Leased only Minerals
Let’s start with if your minerals are leased but you are not receiving any royalty income, one way to get an idea of mineral value is knowing what you were paid as a leasing bonus when you leased the minerals. In many cases, when you wish to sell leased minerals they estimated value can be put at around 2-3 times what you were paid to lease the minerals. This, like all other valuation numbers, is also however only a range. In this situation factors such as lease terms, location and operator also come into play in determining the actual mineral rights value.
In Pay Minerals
Next lets discuss if minerals that are in pay. If you are receiving a monthly royalties check that is one factor that will play largely into your mineral rights value in Oklahoma. The royalty income alone is a large factor that goes into determining value. If you use our royalty calculator below, you can get an idea of value based on income alone. Be aware, buyers will take other things into consideration so that is not a full picture of what your mineral rights may be worth. Knowing the royalty calculation value can get you on the right path to understanding the value of your mineral rights.
How do I find an interested mineral buyer?
As stated previously you can not know the actual value of your mineral rights without finding mineral buyers that are willing to make an offer to buy your mineral rights. Just like with any other commodity, mineral rights are only worth what someone is willing to pay. As an example, if you wanted to sell your home and you thought it was worth $1 million, but it was a 1 bedroom 1 bathroom shack with no running water, just because you value it at $1 million does not mean that is what it is worth. Its true monetary value is found by marketing it and getting offers from buyers who are willing to purchase it. The price they are willing to pay is what it is truly worth. That amount will be affected by many factors just the same as with minerals.
When you wish to sell your mineral rights, as with anything else you wish to sell, the most effective way to market them is by getting them in front of the largest audience of interested buyers. This will ensure you find the mineral buyer that is willing to pay the most for your mineral rights. Thus ensuring the value of the mineral rights goes fully back in your pocket from the sale. We know that the best way to get your minerals in front of the largest audience of buyers it by using a brokerage company. By using a broker that is knowledgeable in the industry and can guide you through the many step of the process of selling mineral rights you can walk away with confidence knowing you got the most value from your sale.
How do I feel confident that I got the best price?
When you sell anything the key to feeling confident that you sold for the highest value is to ensure you marketed the object for sale to as many potential buyers as possible. This is why the MLS for real estate and Ebay for other items are both so successful. They are large nationally recognized platforms relied upon to market items to the largest audience of potential buyers available. For selling your mineral rights, in order to ensure you reach the largest audience of potential buyers we recommend using US Mineral Exchange. They are a brokerage company that have been in business since 2012 and have helped thousands of mineral owners sell for the highest market price available. Their Google reviews are a good reflection of the seller satisfaction with their services. By using the right brokerage service you can feel confident that you sold for the best market price available by knowing your minerals were marketed to thousands of buyers. Knowing your mineral rights received that exposure canlead
How do I navigate the documents necessary for the sale?
One of the reasons we strongly recommend using a broker for your sale is to ensure you do not get taken advantage of. An easy way to get mislead is in wording on contracts a mineral buyer can provide you for a mineral rights sale. There are many red flags to watch out for in sale agreements. Mineral buyers will put in extra long due diligence periods to allow them enough time to show your mineral rights around and sell them for a higher amount. That directly takes money out of your pocket. Other red flags to look for in sale contracts are non specific language regarding what they are purchasing, no details on the location of the mineral rights they are purchasing, no specifics on title due diligence and who is responsible for any costs associated with that.
Determining your mineral rights value in Oklahoma whether with the intent to sell the mineral rights or just for personal knowledge should not be an overwhelming or stressful task. We hope that the information we have provided can help you on the path to feeling informed in how to proceed. We would love to hear from you, please fill out our contact form below. If you have question or just want to touch base we will respond within 24 hours to your communication. Talk to you soon!