With Permian Basin oil and gas activity ramping up, you may have received an offer to sell your Loving County oil and gas minerals and royalties in the mail. You may wonder if this is a good offer.
In short: it’s almost guaranteed NOT to be a good offer. We hear horror stories from so many people who’ve taken these offers, thinking they were good. Later they learn they could have sold their minerals and royalties in Loving for many times more. But now it’s too late to get the real value of their mineral rights in Loving.
How can you avoid this trap?
To get the most for selling your mineral rights, please read this guide. It will help you know how to get the best value!
How to Sell Oil and Gas Royalties in Loving County, Texas
Unfortunately, there isn’t a detailed database on previous mineral rights sales like there is for home values. And, well, no two mineral properties are the same anyway.
The best way to find the right value is to expose your minerals to the biggest lot of mineral buyers and see who gives you the highest price. The worst thing you can do is to go to two or three websites and ask what they’ll give you. Without competition, there is very little chance that you will get offers for what they’re really worth.
Have you ever held tickets for a very popular concert? If so, you know that the value of your ticket increases as you get closer to the show date. Many times, the market value of the ticket rises significantly above the face value, so much so that it makes more sense to sell the ticket than attend the concert. But how do you maximize the value of these tickets? Do you reach out to just a few people and see what they will pay for them? Do you accept the first offer you get in the mail because if “seems” like a good deal? How do you know you are not selling to a scalper who is going to make huge profits on your tickets? In order to ensure that you get the highest price for your minerals and royalties, you need to do put your interests before a larger audience. You need to move past the first offer or two and seek out the highest offer possible.
Your Oil and Gas Royalties in Loving County
First, let’s answer this question: Are you currently receiving oil well royalties?
Yes, I am
If you’re currently getting paid, we’ll help you estimate the sales price, based on what you’re receiving. In some cases, the mineral rights in Loving County, or anywhere else, will be valued at 4 to 6 years of payments. In other words, you’re looking to sell at a price that would pay back in 4-6 years. With that said, in most cases, Loving County can be very, very different. There are so many cases where the value of your mineral rights is exponentially higher than the current income you are receiving. This is why it is critical to market your minerals to a large number of buyers to find the one who will give you the greatest value for yours.
No, I’m not
If you’re not now receiving royalties because there’s been no actual production, your value will depend on your lease agreement and any imminent future activity.
Do you have a lease agreement? If so, your royalties will generally be valued at 2-3 times the amount of your lease bonus. Just like above, Loving County can be different because of the strong activity around there. If your lease has significant future upside and activity could increase soon, the value could be significantly more than 2-3 times the lease bonus.
Here’s an example: if you leased your acreage for $2,000 per acre, you’ll probably sell your royalties for $4,000-$6,000 per acre. Remember that fluctuating oil prices can raise or lower this number. In addition, current activity around your lease can have a significant impact on your mineral interest. It’s just an estimate. But what if that general rule of thumb is much less than what you should sell for? You’ll only know if you actually market your mineral rights. Then you’ll find the buyer who’ll pay you the most
The Best Process to Sell Your Oil and Gas Royalties
Have you received an offer to buy your Loving County mineral rights, but weren’t sure if it was a good price? Have circumstances made selling an option, but you’re not sure how to proceed? You certainly don’t want to be taken advantage of!
The biggest mistake would be to accept any of the first few offers. With only a couple of offers, you can’t know if they’re any good. You may think you are getting it done quicker. But you may also regret that for a long time, if you later find you could’ve gotten much more. It’s important to get multiple buyers competing for what you have. Getting multiple buyers doesn’t have to take longer, either.
How do you do that? A company like US Mineral Exchange can quickly get your property before a nationwide list of qualified buyers. That way you can be sure you sell your oil and gas royalties in Loving County, Texas for maximum value!
Fill out the form below to schedule your free consultation on how to make sure you get the very best deal on selling your mineral rights in Loving County. Don’t be one more horror story!
