The state of Texas is home to a large number of mineral owners and most have questions about their value. In fact, it is the most common question we are asked. It is also one of the more complex questions to answer, but this guide will be a good resource as you look to learn more.
Mineral rights values depend on a number of factors. Each factor plays a role in how much your mineral rights are worth.
We are going to help break down the factors that affect mineral rights values in Texas and help explain how to get maximum value when selling mineral rights in Texas. If you have questions about your specific situation, please fill out the form at the bottom of this page. At Texas Mineral Group our goal is educate mineral owners and help them better understand their mineral rights.
Factors Affecting Mineral Rights Value in Texas
As a mineral owner, figuring out mineral rights value in Texas can be confusing. You could visit a thousand website and never find anyone that can explain the value of mineral rights. There are two primary reasons you won’t find the value online:
1. Mineral rights transactions are kept private. When a mineral rights sale takes place the dollar values are not recorded publicly. This means there is no efficient way to aggregate information about mineral rights being sold. There is no Zillow for mineral rights that can quickly tell you the value
2. The price of mineral rights is fluctuating constantly based on the factors we will discuss below. All of these factors, plus timing, can make a huge difference in mineral rights values in Texas.
Here are some of the factors that will strongly affect mineral rights value:
- State
- County
- Location within the county
- Surrounding Production
- Unit Size
- Current Oil Prices
- Oil and Gas Operators in the area
- Lease Terms
- Royalty percentage
- Lease Term
- Lease Bonus Amount
- Timing
- Activity
With so many factors playing a role in determining mineral rights value in Texas it can be very difficult to estimate value. However, if you want to determine the mineral rights value in Texas we can show you how.
Determine Mineral Rights Value in Texas
If you want to determine the mineral rights value in Texas, you first need to know what type of mineral rights you own. The mineral rights value in Texas will be strongly influenced by whether you own producing or non-producing mineral rights.
If you own producing mineral rights it means you are receiving royalty checks from oil and gas production in Texas. If you do not currently receive oil and gas royalty checks, this means that you own non-producing mineral rights. Since the value is different for each, read the section below that corresponds to the type of mineral rights you have.
How to Value Producing Mineral Rights
If you own producing mineral rights and receive royalty checks each month, determining the mineral rights value in Texas can be easier. The reason is that your royalties payments can be used to estimate some value. In many cases a royalty buyer is willing to pay somewhere between 4 years and 6 years times the average amount you receive each month. The factors mentioned above will affect that value but 4 to 6 years is a good estimate.
HOWEVER, please also note that an offer of 4 to 6 years can be horribly out of the market if some of the factors above need to be considered. It is critical then to make sure you fully understand how each buyer is valuing your interest. There are loads of mineral and royalty owners who sell for so much less than they should.
How to Value Non-Producing Mineral Rights
To even make a guess at the value of non-producing mineral rights is extremely difficult. The reason is that all of the factors above will play a critical role in how much your mineral rights are worth. Your mineral rights value in Texas could range from as little as a few dollars per acre to a few thousand dollars per acre depending on what county your property is located in and what other factors above should be considered. If you want us to provide you with a more accurate estimate, fill out the form at the bottom of this page and we’ll let you know what we have seen based on our experience.
How to find the exact value of mineral rights
If you want to find the exact value of mineral rights there is really only one way. To find your mineral rights value in Texas you will need to put your property on the market for sale. This will allow the market to tell you what the exact value of your mineral rights are. Because there are so many factors that affect value, the only way to know 100% for sure what your property is worth is to find the buyer who will pay you the most.
When you sell mineral rights in Texas it’s extremely important that you get your property in front of a large number of mineral rights buyers. This is important because when you only talk with one or two buyers you aren’t likely to find the highest price. In fact, you are likely to get no where near the value you should.
If you want to get maximum value when you sell mineral rights in Texas you need to create competition among buyers. This competition drives prices higher ensuring that you get fair market value when you sell mineral rights in Texas. If you are currently considering an offer to sell mineral rights, it’s in your best interests to see what other offers are out there.
How to Sell Mineral Rights in Texas
If you want to sell mineral rights in Texas and get maximum value we recommend listing your property at US Mineral Exchange. The reason we recommend you list with US Mineral Exchange is that they not only provide you an online way to market your minerals, like Zillow, but they also actively market in other more traditional ways. The key is to get your property online and allow multiple buyers to compete for your property. As we mentioned before this competition drives up prices and puts more cash in your pocket. You can look at US Mineral Exchange on the web and quickly see from their google reviews that folks looking to sell their mineral rights in Texas have a really great experience.
Another key benefit to listing at US Mineral Exchange is working with qualified buyers. When you do a quick google search for mineral rights buyers, you’ll find literally thousands of buyers. How do you know who to trust? How do you know you’re working with a reputable company who won’t take advantage of you? How do you know someone isn’t flipping the property on you? You can avoid all the pitfalls of selling mineral rights on your own by working with someone who has done it thousands of times before. US Mineral Exchange will help walk you through the entire process all the while, helping you avoid making any costly mistakes.
