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  • Should I sell my minerals and royalties?

    This is a question I get asked very often. Most of the time, clients want to know because they have started to receive offers and/or they are receiving increasing offer amounts for their interests from mineral buyers. This has especially been the case as the price of oil has reached new highs lately. For others, they may need or want to sell for personal reasons, have been sitting on their asset for quite some time and are starting to consider if they should sell, or they may be just curious as to what kind of offers they could receive. I wish the answer were simple, but along with many other factors that help answer the question, "How much do mineral rights sell for?", it also varies based on the stage of development your interests are in. In this blog, we will educate you on these stages: Unleased/Undeveloped, Proven Undeveloped (PUD), Proven Developed Producing (PDP), or Proven Developed Non-Producing (PDNP): When is the best time to sell my minerals and royalties? The good news is there are multiple opportunities during these four stages of development but as you can see from the graph below, there are also times when you may want to hold them for a little while longer until some activity starts to shake loose. But, remember... Not every area where there is oil and gas is created equal nor is every shale play, some are more productive than others. It should also be stated that the information described below will change should there be more than one productive zone or horizon (for example, the Permian Basin of west Texas has multiple productive horizons). The same thoughts outlined below should be applied to the respective productive horizon capable of producing in paying quantities. The only caveat to this would be how long would it take for the Operator to commence development of these additional horizons. This could honestly, take decades. The rules of supply and demand, commodity prices, and market cycles also play a huge role and shouldn't be overlooked. However, for all intent and purpose we'll simply focus on the four development stages and the selling opportunities therein. Want to talk about it instead? Fill out the form or schedule a complimentary consultation. Let's go through it together: 1 - Unleased/Undeveloped: At this stage, unless it appears leasing and drilling activity is moving your way, it's best to sit back and be patient. You don't want to sell your minerals when they are not worth anything. You aren't being taxed on them if they are not being developed anyway. If you are a long-term investor this could be a good time to buy unleased/undeveloped rights if you feel the area they reside in has potential to be developed and if they could be acquired at a good price. Is this a good time to sell? This would most likely be the least opportune time to sell your mineral rights; you definitely want to wait until one of the next milestones occur. 2 - New lease taken/bought: When a lease is taken (or bought) by an Operator from the mineral owner, the value of the asset will go up slightly. Note: the duration and terms of the lease are very important at this stage. It matters greatly if you negotiate a 6-month versus a 3/5/7-year lease. The shorter the lease term, the more likely development is near and imminent. Other factors that add value are: Royalty percentage (cost-free, of course), and Whether the lease contains (or is absent) a drilling commitment, good pooling and Pugh clauses, and an extension: If, after the acreage is leased, and no development happens for some time, the value will start to decline as the lease expiration date approaches. If there is an extension clause in the lease, it could be a deciding factor for a buyer, and they will decide if this extension gives more or less value to the asset. I've seen buyers go both ways: Some buyers will wait to see if the Operator chooses to extend the lease and others will buy it in hopes of getting some money back on their investment. Chances are, if they do decide to make an offer to purchase your interests, they will attempt to secure the asset at a lower cost. Other buyers may feel it could be too much of a risk (even though they could receive some extension bonus money) to have their money tied up during this extension period without knowing whether drilling will take place in the future. Bottom line: A good lease is important! It will behoove the mineral owner in the long run to have a favorable royalty rate, pooling provision, continuous development, Pugh clauses, and whether a drilling commitment (most likely it won't be) is dictated in their lease agreement from the start. This is why it's good to have a knowledgeable Landman or attorney to assist in the beginning. Is this a good time to sell? This would be the first milestone one would want to wait for if the thought of selling your mineral rights has crossed your mind; however, it is still not the most opportune time to sell even a percentage of your minerals. 3 - Value decreases while time passes 4 - One or more permits are filed Alright! An Operator permits a well affecting your interests causing your value to go up a little more. The more permits filed, the more valuable your acreage becomes. If there are permits filed on adjacent/contiguous lands, this could potentially add value to your interests as well. However, should time start to pass with no drilling activity taking place for a year or more, the value will decline as permits typically expire after one year with no development (Stage 3). The next opportunity for added value will be when the Operator renews/files new permits and starts drilling. Is this a good time to sell? This is the second time one would really want to consider selling a percentage of their mineral and/or royalty rights. It's still not the best timing, that's coming up. 5 - Should no drilling take place soon, values will continue to decrease as permits expire 6 - PUD Stage: Drilling starts Oh boy, now it's about to get interesting. When an Operator starts drilling one or multiple wells affecting your interests it causes the value to go up exponentially more. While an Operator can only drill one well at a time, they can drill several wells back-to-back. Hopefully, they have plans to consecutively drill several wells and hopefully they complete (or frack) as many of those wells as possible. The more wells the Operator initially drills and completes, the higher the value of your interests will go due to the potential buyer receiving the flush production from those wells. What's most likely to happen is the Operator may only drill one or two wells and then wait for them to start producing so they can analyze the production results from their drilling and completion methods used. This acreage will now enter the Proven Developed (PDP) and the Proven UnDeveloped (PUD) stages. This is a stage that mineral and royalty buyers both love and hate. They love the flush production and ROI they will soon be receiving from the acreage classified as PDP but don't like that mineral and royalty owners will expect them to pay handsomely for the acreage that is not yet producing, the PUD acreage. Nowadays, mineral and royalty buyers don't like to attribute much value to the Proven UnDeveloped (PUD) acreage, but they will pay for it so long as the seller expectations for the non-producing interests are not over inflated. The only acreage mineral and royalty buyers like to give value to is the producing acreage. For the rest of the non-producing PUD acreage, they may offer a little value, but will not pay a lot for it. However, this is not always the case as I always say: "Something is only worth what someone is willing to pay for it". By these standards, a mineral and royalty buyer may find value in paying up for PUD acreage based on the potential future value if an Operator starts going into the development stage. Should an Operator start developing the PUD acreage, the value of your interests at that point far exceeds what most mineral and royalty buyers would be willing to pay. Whether they pay very little or pay up, they will consider timing and the future value. (Note: the wells that don't get completed at this time are now called Drilled, UnCompleted wells (DUCs)). Is this a good time to sell? At this stage, values that mineral and royalty buyers throw out may range greatly as the results from the newly drilled wells are somewhat uncertain and the acreage has not been de-risked yet. Should you choose to sell at this point, it would be best to only sell a percentage of your interests and at the highest price possible. Seriously, the absolute highest price possible and you will want to have an experienced Landman assisting you in the process! This will allow you the opportunity of taking some cash and substantial level of risk off the table while hedging your bets on future potential. This could potentially be one of the best times to sell provided you have a mineral and royalty buyer willing to pay up for not only the soon to be producing acreage but also the acreage the DUCs and other non-producing acreage covers. Another thing to consider is that once the Operator drills and completes one to two wells, your interests may be considered Held by Production (HBP). This means the Operator has fulfilled their drilling obligations for the foreseeable future with nothing forcing them to come back and drill any new wells. This is not what you want. Let's say you negotiated a three-year lease and in year two the Operator drills two wells thereby fulfilling their drilling obligations per the terms and conditions of your lease and at the same time HBP'ing your interests. This could afford the Operator the opportunity to sit back and possibly wait another 10 years completely passing up the expiration of your three-year lease so long as the wells continue to produce in paying quantities before they may want to come back and drill again. Is this to say that mineral and royalty buyers won't want to buy your interest? They more than likely will, they just won't pay top dollar prices for it. Again, you need a good Landman or attorney to help negotiate a good lease in the beginning to get the best terms on your behalf. 7 - Production from first well(s) start to decrease, as do values 8 - PDNP Stage: Additional wells drilled, but not completed Moving forward, if the Operator happened to drill several wells and only completed a few (one to two) of those wells, the acreage as a whole is now considered to be Proven Developed, Non-Producing (PDNP). Mineral and royalty buyers everywhere are going to be watching the results of those newly completed wells very carefully. Should those wells turn out good, those same mineral and royalty buyers are going to make haste and start contacting other mineral and royalty owners affected by those wells and contiguous/surrounding acreage in the area. After approximately the first eight to ten months initial production, the value of your interests will start to decline as production continues to flow (as the product is being produced/drained from the acreage affecting your interests). At this point, should the Operator fail to return to complete any of those DUCs, the acreage value will start to sharply decline. The more time that passes, your interests will bleed off value as the wells decline rate starts to level off, at which point the value of your interests will be based more on a PDP value as mentioned above in stage 6. Is this a good time to sell? This could still be a good time to sell a percentage of your interests. However, the better time would have been while the drilling activity was fresh as mineral and royalty buyers apply great consideration to the time value of money and their ROI. Naturally, just like any investment, the buyer wants to start making as much money as possible and as quickly as possible and it's no different when buying and selling minerals and royalties. Mineral and royalty buyers pretty much know what to expect from any new wells and they apply a cap to what they would be willing to pay to acquire new or additional interests under acreage that has achieved this level of production or classification, PDP and PDNP. 9 - Production from first well(s) continues to decrease 10 - Additional drilled wells are being completed The Operator has decided to return, they are completing any DUCs and going to drill and complete the last few wells thereby fully developing the acreage. It should go without saying now that two things are going to happen: The value of your interests is going to go up again. How much it goes up will be dependent on how many new wells are being completed and new wells drilled and completed. Word will get out fast those DUCs are going into their completion stages thereby setting the stage for new and flush production and heightened mineral and royalty buyer activity once again. Is this a good time to sell? Once again, mineral and royalty buyers will know what kind of production to expect from the new wells and they can and will apply a cap to what they would be willing to pay for new or additional interests under this acreage. It's still not a bad time to sell, however, unfortunately it is also not likely you will get what you feel the property could be worth and what a buyer is willing to pay will typically not be in line with your expectations (I explain more about this further). 11 - PDP Stage: Acreage becomes fully developed As the Operator finishes the drilling and completion of the last few wells, they reach full development and the wells start producing, the value of your interests will drop substantially as the well production declines. Horizontal wells typically decline at a faster rate than vertical wells and produce a steeper decline curve before leveling out (yet still declining), which every mineral and royalty buyer will consider when making any offers to purchase. Again, the buyer offer price and seller expectations will most likely not be in line. "At every milestone development there is time to sell and a time to wait." Have questions or need clarification on your particular needs? Contact us today. Selling Minerals and Royalties Understanding the Buyer/Seller Gap It is very rare for mineral and royalty buyers and sellers to agree on how mineral and royalty interests should be valued. The gap between buyer and seller expectations is typically the size of the Grand Canyon at best before the two come close to an agreed value. If this happens, the buyer usually will come up slightly in price but most of the time the seller is the one that must lower their expectations more than what the buyer is willing to come up in value. It's rare for the seller to have total control and have buyers bend to their will with inflated asking prices. The best opportunity for sellers to get the most value would be starting at stages 6-8. The reason why I stated at both Stage 10 and 11 the seller's expectations won't be in line with the buyer's offer is because 99.9% they aren't (generally speaking, this really goes for any stage)! Here are a few reasons as to why: 1. Sellers are not familiar with the various production stages of developing oil and gas minerals nor are they completely understanding or knowledgeable about how to value minerals and royalties in each stage of development. Most sellers think oil and gas production will continue forever while also knowing that it is a declining asset. Kind of weird. Bottom line: Sellers should know their asset inside and out, know the market, and what direction buyers are heading. Speak to a Landman or attorney specific to your interests if you need help. It will save you a lot of time and headaches! 2. Sellers want top dollar for every drop of oil or gas that could be squeezed from beneath their property when in fact, no Operator will ever be able to produce and extract every single drop or barrel of oil or mcf of gas from the land. At some point, it will not be economic to even attempt producing the acreage any further. Bottom line: Buyers can't and won't compensate sellers for every drop of production their interests are capable of producing. 3. Most (not all) buyers are considered aggregators, meaning they will buy several different assets and when they feel they have a good enough bundle of assets to sell, they will sell to a larger mineral and royalty buyer and then they'll do it again and again. But no matter what, any aggregator/buyer will apply the decline rate of each well affecting your interests, apply that same decline rate to any future wells, and try to apply some timeframe when future development may take place. It greatly depends on past development, how much room is left for future development, and some guess work unless they have some other inside info regarding the Operator's plans. They will go through this same process again and again when they go to sell their assets or fund to a larger buyer. 4. On top of not paying for all the production a property can produce while also applying the decline curve of each well, the price buyers are willing to pay is further reduced based on their risk vs. reward metrics. While reducing the price they can pay even further so they can make a good ROI while it is going through its various production stages. The price could be reduced even further because when it's time for the buyer to then become the seller, they'll want to make money when they go to sell the asset. Most buyers have some time frame in mind and know about when they would be willing to divest of their assets even before they start buying. Not to mention, buyers usually have overhead like employee salaries, office space, and other operating costs they must pay. Bottom line: Buyers can't pay what sellers typically want, they just can't. There must be enough "meat on the bone" for when the buyers choose to sell. 5. Sellers don't really care about what hoops the buyers have to jump through. Sellers typically want what they want, however, at the end of the day something is only worth what someone is willing to pay for it and this goes for anything. Bottom line: Sellers need to consider all aspects of the development, production, and business of being a mineral and royalty buyer. It's more than what they think and there is a considerable level of risk that needs to be taken into account. Wrapping Up You will notice that I not once mentioned during any of the declining stages that it would be an opportune time to sell any of your mineral and/or royalty interests. One should, at all costs, wait for one of the important milestones described herein to consider selling some or all their interests. It should also be mentioned that everyone's situation is different, and life happens to us all. Should something come up or happen, it's important to understand what stage of development your interests are in at any given time. When you have this understanding, you can be more realistic about what to expect should you need to sell or simply choose to sell. I hope this article help does that for you. To recap with some fun: It is equally important to know that owning mineral and royalty interests come with great responsibility and should always be treated as an asset. Forget any emotional attachment as it would be more wrong to not take advantage of selling some or all your interests if it makes sense: to deny a son or daughter, niece or nephew, or grandson or granddaughter a chance to go to college, to be strapped for money and allow yourself to drive an unsafe vehicle, or allow yourself to file bankruptcy, and heaven forbid, allow yourself to lose this incredible asset to the bank over something foolish like not selling some of your mineral and/or royalty interests when the need and opportunity presented itself. There could be countless reasons why one would want to sell some or all their mineral and/or royalty interests. Everyone's situation is different. In addition to the information included here, there is also a people component to buying and selling minerals and royalties. I mentioned a couple times throughout that you should have an experienced Landman or attorney helping you along the way. A professional with a close network of top industry buyers they regularly do deals with can help you get top dollar for your interests, help manage the process, and make your experience more enjoyable. Thanks for hanging in there with me. I know this is a lot; my aim is to help mineral and royalty owners make smart and confident decisions with their interests. Contact us today if you need further help and don't forget to visit our FAQ page where we cover a wide range of topics. Thanks for reading the VOG Blog!

  • Understanding Net Mineral Acres and Net Royalty Acres

    Welcome back, friends! I find myself explaining the differences between Net Mineral Acres (NMA) and Net Royalty Acres (NRA) to a lot of my clients and for good reason. These terms are used a lot in the industry yet most owners don't know what they mean, if they own NMA or NRA, and how to use these terms correctly when speaking to potential buyers, in particular. It can cost an interest owner hundreds if not thousands of dollars if they don't know what these terms mean. In fact, I recently encountered a professional Land Manager at a large oil and gas company that said he had never heard of Net Royalty Acres! It blew my mind (and blew the deal, but that's another story) which goes to show you how important it is to understand what these two terms mean. To not bore you with words and long sentences with this tutorial, I decided to get creative and explain NMA and NRA in another fun infographic! If you like this one, check out our other infographics explaining Independent vs. In-House Landman, Surface, Mineral, Executive, and Royalty Rights, and What is Working Interest? That's all there is to it! By now, you should be able to speak confidently and clearly about what you own and how to talk to buyers, should that need arise. Although this is not where the calculations end (figuring out your Division of Interest is next), it's a great place to start when educating yourself on the value of your assets. Contact us if you need further help, we're always here to give you guidance. Want to learn more? We cover a lot of details on our FAQ page! Thanks for reading the VOG Blog!

  • Hedging Inflation with Minerals and Royalties (Updated 2022)

    Are mineral rights a good investment? If you're looking for reasons to invest in oil and gas, the best way to be sure about your decision is to unlearn what you think you know and re-learn what's new and changed in the industry. 2022 Update This article has been updated to reflect the economical changes not only in the US but also around the globe. As we rise out of the ashes of Covid, the rate of inflation is at a 40-year high, having risen at its fastest pace since 1982. Russia has invaded Ukraine, which is likely to push food and commodity prices up higher. Wages have increased dramatically as one can tell when driving by a fast food restaurant advertising hourly rates starting at $15 per hour with these rising labor wages are to be passed onto their customers. It's been a wild ride and it doesn't look poised to end anytime soon. So how does owning minerals and royalties affect the owner during a hyper inflationary period? Buying Mineral and Royalty Interests as a Hedge Against Inflation Many investors have started to think seriously about gobbling up any investment that could act as a hedge against inflation. It is a topic that should be on most minds, investor or not, at this juncture in time because we will likely be dealing with a very extreme bout of inflation over the next 10-20 years. However, there are a few investments that can be used as a hedge against inflation where their value stays equal or increases faster than the rate of inflation (or the decline of the dollar). and they are: · Gold and silver (physical, futures, and stock in gold companies) · Fine art · Vintage cars · Real estate · Oil and natural gas commodities Of course, there are probably several other good strategies, however we will only focus on the oil and gas industry. Disclaimer: This is not financial advice, but the investment strategy I’m about to mention is sound and proven; you get to ride the wave of an asset class not known to many investors - buying mineral and royalty interests. It checks several boxes that make for a great investment to hedge against inflation. How the Price of Oil and Gas Affects Mineral and Royalty Owners During the time in which an oil and gas Operator is drilling and producing, they are selling that oil at certain price per barrel (bbl) and the gas at a certain price per million cubic feet (mcf). When the price of oil and gas are on the decline, Operators hedge their production by locking in a price to sell it. Conversely, in times when the price of oil and natural gas are on the way up, Operators don’t typically lock in the price to sell their production because they want to sell it at the present higher market rate. If the price is steadily increasing and there is fear of a price crash, they may lock in a price at that point and see what happens. However, when oil and natural gas prices are just starting their run up, Operators will ride the wave, typically increase production, and start producing as many wells as possible hoping to cash in on the higher oil and natural gas prices. During this time when Operators are selling production at higher rates, the owners of mineral and royalty interests under lands the Operators are producing from will also benefit by seeing higher and higher monthly royalty checks. (This is another reason why it’s good to have a diversified mineral and royalty interest portfolio under good Operators and it’s also important to understand the stages of production.) "High oil and gas prices = High royalty checks for mineral & royalty owners." Thinking of investing in minerals and royalties? You must first understand three important things. Oil and gas is here to stay for the next 10-15-20 years. There's just a few more good friends alongside them (hint if you've been living under a rock it's renewables) Make sure you understand the risks and rewards of Investing 101. If you don't, you will have unrealistic expectations and low chances of success. Ensure you have a reputable industry expert with a solid network so you can reach the real and serious players in the industry. Like most commodities, oil and gas is heavily tied to supply and demand. We've seen the price per barrel of oil start to steadily climb so long as the major global producers keep their production in check and don’t flood the crude oil gates. Hedge and mutual funds in the energy sector have investments in this asset class and have been reaping the benefits for decades. They have had within their baskets a vast amount of oil and natural gas operating companies listed on the S&P 500 and New York Stock Exchange. This asset class is still growing and the intricacies of investing in this specialized area of oil and gas is largely unbeknownst to the common investor. Truth is, anyone can invest with almost no minimum investment requirements. Here are the 10 great reasons you should consider when investing in oil and gas minerals and royalties and how to get started: Reason #1: There are billions of acres available for anyone to invest in. The US is unique in that it has billions of acres where anyone, individuals, companies, etc. can own minerals and royalties, whereas in other countries the government owns the minerals and individuals are only allowed to purchase the surface rights. Reason #2: You (and your family) own minerals and royalties forever. With the exception of overriding royalties (however, these are still a good investment if bought with the right criteria and at a reasonable price), once you own minerals and royalties, they are yours forever until you decide to sell them. This means your heirs can also inherit them should you decide to pass them down. Reason #3: They are a source of passive income. Anyone like mailbox money? Minerals and royalties can create passive income for 30-40 years and maybe even for a lifetime. Once you own minerals and royalties and they start producing, you can just sit back and collect and even earn money while you sleep. If they’re eventually going to be passed down to your heirs, they will receive the royalties too. Reason #4: Low-cost maintenance compared to other investments. Unlike other investments in oil and gas, once the purchase of minerals and royalties is complete there are no monthly expenditures required and no further deployment of capital. Once your minerals and royalties become producing, you’ll have to keep up with lease maintenance, if applicable to you, and make sure you are being paid correctly (that’s what Mineral Managers are for). Once owned, unlike other investments in real estate (which is exactly what minerals and royalties are), there are no annual taxes owed on minerals and royalties until they become producing. Reason #5: Low transactional regulations. The actual buying and selling of minerals and royalties is not heavily regulated like buying and selling other forms of real estate. Individual investors are not required to have a broker’s license or certifications to engage in the buying and selling of minerals and royalties (although I highly recommend hiring a professional to help). Reason #6: Diversify, diversify, diversify! A good diversification model is to own both oil and gas minerals and/or royalties in your portfolio across various areas of the United States. For example, when looking at opportunities to purchase minerals and royalties, I want to own oil producing minerals and royalties in the Eagle Ford shale, located in Southern Texas, and some natural gas producing minerals and royalties also within the Eagle Ford shale. Furthermore, I want to apply this same thought process when acquiring minerals and royalties in the Permian basin of west Texas and southeast New Mexico as well as the Haynesville shale in eastern Texas and western Louisiana, and any other producing area of the US. Reason for this is that the cost to produce and extract oil and gas is different in different areas. So, when the price of oil and/or gas rises and falls, the areas in which it costs more to produce and extract oil and gas will see less development and production therefore sidelining development in those areas. Reason #7: Invest in strong, prudent operators and companies. In addition to #7, owning diversified minerals and royalties under technical and prudent operating companies with strong balance sheets creates an even further diversified and stronger portfolio. The better the company and the better they are at operating your specific minerals, the more they will be worth. Reason #8: Short-term positive - recoup your investment early. In the short-term, investing in oil and gas minerals and royalties is a great investment if one can purchase the minerals and royalties right before new wells come online. This is when you can get most of your investment back as this is the point when production is at its greatest. Reason #9: Long-term positive - ride the gravy train. Once you have recouped your initial investment in the short-term, the extra mailbox money you’ll continue to receive is just like owning a ticket on the gravy train express for as long as the well(s) stay producing. Keep in mind that the well(s) will eventually stop producing but you have the potential to reap significant gains from your investment in the short and the long-term. Reason #10: 1031 tax deferred exchange. You can buy and sell minerals and royalties through the usage of a 1031 exchange which must be transacted through a qualified 1031 intermediary thereby creating the ability to defer your property sale tax to a later date. The only caveat is that the real estate (house, land, or other minerals and/or royalties) you buy must be of equal or greater value. So long as you follow this rule, you could do this over and over again for as many years as you’d like to defer your taxes until the final date in which you decide to sell your assets and not buy any others. One more tip: It always helps to look at the opposite side's perspective. Buyers need sellers so get educated on their point of view, find out what to look for when evaluating prospects, and you will be glad you took the time to understand their concerns when the opportunity to buy presents itself. There you have it! Investing in oil and natural gas minerals and royalties is not so scary. Minerals and royalties have long been considered a solid investment to help hedge against inflation and now is no different. Once you understand how the industry works and like all investments, are willing to accept the risks involved, then the process of investing in this enterprising venture can be exciting, rewarding, and something to offer your kids and grandkids for their futures. How to Buy Mineral Rights If you’re interested in taking the next steps to investing, here are two things you can do to get started: 1. Talk to a professional Landman or Mineral Manager about your plans. If you know the areas you want to invest in, find one who specializes in those areas of interest (AOI). Venergy specializes in the Eagle Ford shale and the Austin Chalk in southern Texas, the Permian basin of west Texas and southeast New Mexico as well as the Haynesville shale in eastern Texas and western Louisiana. 2. Read up and get educated on the oil and gas industry. Whether you are a beginner or a seasoned investor, information is always changing and it benefits you greatly to stay abreast of market changes. We have a number of helpful blogs and infographics to help you get going. And don't forget to visit our extensive FAQ page! If you would like to start really simple and just have a conversation, we invite you to schedule a time to set up a virtual meeting or fill out the form below and we will get in touch with you. Thanks for reading the VOG Blog!

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  • Services | Venergy Momentum Oil & Gas | Land, Mineral & Royalty Management TX

    Oil & Gas Firm Serving Texas Mineral and Royalty Portfolio Management Get your time back for things that truly matter. After your initial consultation , Venergy can provide advisement pathways so you can choose how to make best use of your royalty income. Our Mineral & Royalty Management services include: ​ Manage, organize and audit your division orders, royalty income and suspended royalty accounts ​ ​ Monitor drilling activity and operator outlook and obligations ​ ​ Perform detailed checks and balances on your mineral lease for contract and regulatory compliance ​ ​ Ensure the proper execution and enforcement of your lease terms ​ Provide guidance on what to say to the operator or if requested, Venergy can request a letter of representation to speak with them on your behalf The old adage, "Never sell your minerals and royalties..." is an antiquated way of thinking when big money and corporations are taking advantage of this growing asset class. It is time individuals, families and family trusts start paying attention and treat it as a true investment vehicle. ​ Using intelligent analytics, industry foresight, and our trusted network of reputable end buyers, we guarantee top-level offers if you are considering selling your mineral interests. ​ A Mineral Appraisal is the most important first step you can take when considering selling all or a part of your interests. Request an Appraisal Today Sell your Mineral and Royalty Interests Start treating your asset as a true investment vehicle. Own them forever. No monthly expenditures. Buy Mineral and Royalty Interests The only real risk to investing in minerals and royalties is tied to commodity prices. Once the assets are purchased, you own them (outside of Over-Riding Royalty Interests). You have no monthly operating expenditures in order to maintain your investment or equipment, only annual taxes and that’s only if the interests are producing. ​ As long as you diversify your holdings to incorporate both oil and natural gas assets located in different basins or areas of the U.S., you should have no concentration risk. ​ There are over 1.6 billion acres in the United States available for lease, sale, or trade. This gives any investor a fighting chance at buying some very good minerals and royalties. Learn more about Investing Questions? See our FAQ's No matter how experienced or inexperienced you are in oil and gas land management, the breadth of information and decisions to be made can be overwhelming. Feeling bombarded by phone calls, letters, and promises of highest offers are common. Not only do mineral and royalty owners have to contend with these outside influences, they must also deal with their own emotional ties, needs, and wants. With Venergy consulting, you can receive up-to-date industry intel and honest advice, including: ​ ​Market Research & Trends ​ Asset Analysis ​ Operator & Area Activity ​ Recommendations for next steps Oil and Gas Consulting Experience and strategy required. Schedule a Complimentary Consultation Expert Witness: Title and Revenue Discrepancy Feeling wronged? We can help make it right. Disputes in title not only occur with Operators , but also between mineral and royalty owners who own interest under the same tract of land. ​ Fixed versus floating royalty reservations, language interpretation during a past or present conveyance of rights, and recent developments in caselaw have significant impact on your payouts then and now . Discrepancies will undoubtably find their way into how your royalties are distributed and you could be eligible for back pay. We have experience gathering, analyzing, and presenting the facts to help our clients get back what they deserve. Am I being paid correctly? How to find out if you own mineral rights. Venergy's team will get straight to work pouring through chains of title and deeds from the county courthouses where your minerals and/or royalties are located. Sifting through documents that can range back to the mid-1800's requires a trained eye, time, and attention to detail. We know the drill at these courthouses and the processes needed to provide our clients with professional, easy-to-understand mineral and royalty ownership reports. ​ To go into negotiations without a proper chain of title can be disastrous. Get the negotiating power in your hands with Venergy's help. ​ Our Land & Title services include: Due Diligence Compilation Abstracting, Title & Curative Leasing & Negotiations GIS & Mapping Services Find out if you own minerals & royalties For a number of reasons, families may need to separate mineral and royalty interests from one another. ​ Transferring property ownership can be a simple process if the family is willing to communicate, provide the necessary documentation, and in the event of a death, have a probated will in place. ​ However, if fulfilling any of these requirements is not possible, some additional work and patience might be needed. Individual family member wants and needs can also have an effect on their emotions making the process more difficult. ​ An experienced and personable mediator that is also tolerant and unbiased can be the bridge to assist families with dividing up mineral and royalty estates. Separation of Mineral & Royalty Estate We are Certified Patience Experts. Learn more about dividing up your interests Visit our FAQ's Oil and Gas Valuations Fill out the form to get the power back in your hands. Latest Videos Play Video Play Video 03:49 How High Oil Prices and Inflation Affect Mineral and Royalty Owners Inflation is here (again) and if you are a mineral and royalty owner, or thinking about becoming one, it's important to understand how this special (and commonly overlooked) asset is a smart way to hedge against the effects of rising inflation. Minerals and royalties are not only a good investment during non-inflationary times, they are an excellent asset to your portfolio because they are considered a form of real estate. Like all real estate, you have to pay for it upfront, but unlike other standard forms of investment, you only have to pay taxes on them when they are producing. The art of buying and selling minerals and royalties can take some time to understand but the rewards can be huge for you and your family. If you've inherited your interests, it's important to speak to a trusted professional to help you decide what to do next. There can be major tax implications if you don't understand your options. Venergy Momentum is a private and progressive oil and gas firm in Austin, TX that specializes in educating and consulting mineral and royalty interest owners and non-op working interest owners. To learn more, please visit www.venergymomentum.com and subscribe to our channel for updates. Read our 5-Star Google reviews: https://bit.ly/venergyfivestar Schedule a time today to speak with CEO and founder, Kyle Venema: https://calendly.com/kylev-1/consult Play Video Play Video 01:01 Should I Sell My Mineral Rights? Before answering this question, sellers first need to be aware of the price gap between buyers and sellers that I find is nearly always present in every deal. When novice sellers are considering selling their mineral interests, more often than not, they think their minerals are worth A LOT of money. After all, this is probably what they have been told for decades, but it's not always true. So why is it hard for buyers and sellers to agree on a price? Sellers don't always take into account all the factors that buyers have to consider. It's a lot more than what they think and this video explains just some of the reasons why the price gap can be so large. This is definitely not an exhaustive list, only a list of the 5 most common factors that sellers overlook or don't know about when it comes to transacting minerals and royalties. If you are considering selling your minerals, read the full article at: www.venergymomentum.com/post/why-is-it-so-hard-for-buyers-and-sellers-to-agree-on-a-price. Also check out: "Should I sell my minerals and royalties?" at: www.venergymomentum.com/post/should-i-sell-my-minerals-and-royalties. Venergy Momentum is a private and progressive oil and gas firm in Austin, TX that specializes in educating and consulting mineral and royalty interest owners and non-op working interest owners. To learn more, please visit www.venergymomentum.com and subscribe to our channel for updates. Read our 5-Star Google reviews: https://bit.ly/venergyfivestar Schedule a time today to speak with CEO and founder, Kyle Venema: https://calendly.com/kylev-1/consult Play Video Play Video 01:57 11 Smart Reasons to Get Your Minerals Appraised Curious about the value of selling your mineral rights and how much mineral rights sell for? It's not always a simple answer. Getting a professional present or retroactive mineral appraisal is the first step in determining mineral rights value. Venergy Momentum Oil & Gas provides mineral appraisal services by a Certified Petroleum Engineer to help you determine what your minerals rights are worth. We can help answer your questions and guide you on what to do next. Values can change quickly, contact us today! Read our 5-Star Google reviews: https://bit.ly/venergyfivestar Schedule a time today to speak with CEO and founder, Kyle Venema: https://calendly.com/kylev-1/consult Play Video Play Video 01:49 Separating Your Family's Mineral and Royalty Estate - What to Know Dividing up family interests is a common practice for any number of reasons, and can be considered an advantage for all parties. Separation of family oil and gas assets can arise for any number of reasons: - Family members pass on and their interests need to be divided among heirs - Interests were held in a family business and for some reason it needs to be dissolved - Some family members want to sell and others do not - Family members want their share of the interests to be held as separate property - Family feuds - Out of some other necessity (i.e. financial needs) Whatever the reason, it's important to have a trusted professional who knows how to handle the paperwork, knows who to talk to, and most importantly, has experience handling family oil and gas matters. Read the full article at: www.venergymomentum.com/post/dividing-family-mineral-and-royalty-estate-what-you-should-know. Venergy Momentum is a private and progressive oil and gas firm in Austin, TX that specializes in educating and consulting mineral and royalty interest owners and non-op working interest owners. To learn more, please visit www.venergymomentum.com and subscribe to our channel for updates. Read our 5-Star Google reviews: https://bit.ly/venergyfivestar Schedule a time today to speak with CEO and founder, Kyle Venema: https://calendly.com/kylev-1/consult Play Video Play Video 00:59 Are My Mineral Rights Valuable? 3 Ways to Find Out. Selling mineral rights value - how much are my mineral rights worth? If you're a mineral or royalty owner, it's smart to ask yourself this question at least every two to five years. "Two to five years?!?!" Yes! The industry is always changing mostly due to worldwide cycles of supply and demand affecting the price of oil and gas but on a local level, determining the value of your specific interests depends on factors such as: *Lease terms and the Operator's obligations *The forecasts and drilling plans of the Operator(s) in the area your assets are located *The stage of development your interests are in (find out the stage your interests at: www.venergymomentum.com/post/should-i-sell-my-minerals-and-royalties) *Take-away capacity: Is there a market? Can the Operator sell the production? *and much, much more... If you're not keeping watch on your interests, you could be missing out on huge payout opportunities. The old adage, "never sell your minerals" is not always the best advice anymore. The only time this statement holds true is when they aren't worth anything! The best way to find out what minerals are worth is to get a professional mineral appraisal done by a Certified Petroleum or Reservoir Engineer. If you have inherited your mineral rights and have never had an appraisal done, or you haven't had an appraisal in the past two to five years, then you definitely need to consider getting one done asap. In this video are three high-level and simple ways to give you an edge on whether or not your minerals have value. And remember, you don't have to sell all of your mineral interests; you can sell 15%-25%-%50% or anywhere in between! Venergy Momentum offers mineral appraisal services, can answer all of your questions, and guide you on what to do next if you are considering selling your minerals. Read our 5-Star Google reviews: https://bit.ly/venergyfivestar Schedule a time today to speak with CEO and founder, Kyle Venema about what a mineral appraisal can do for you: https://calendly.com/kylev-1/complimentary-client-consultation-mra Play Video Play Video 02:19 7 Smart Reasons to Sell Your Mineral Rights Selling your mineral rights can be a wise choice if you need to respond to a life event, want to restructure your portfolio, or take advantage of a 1031 Exchange opportunity. Another reason might be to release the responsibility of managing the interests to your heirs who may not have the knowledge to manage them or possibly may not have a desire to own them. Whatever the reason, selling doesn't have to be an arduous process. Mineral values are constantly changing and getting an appraisal is the best place to start. Venergy Momentum offers mineral appraisal services, can answer all of your questions, and guide you on what to do next if you are considering selling your minerals. Read our 5-Star Google reviews: https://bit.ly/venergyfivestar Schedule a time today to speak with CEO and founder, Kyle Venema about what a mineral appraisal can do for you: https://calendly.com/kylev-1/consult

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  • Get Started on Your Mineral Appraisal | Venergy Momentum Oil & Gas | TX

    Latest Videos Play Video Play Video 03:49 How High Oil Prices and Inflation Affect Mineral and Royalty Owners Inflation is here (again) and if you are a mineral and royalty owner, or thinking about becoming one, it's important to understand how this special (and commonly overlooked) asset is a smart way to hedge against the effects of rising inflation. Minerals and royalties are not only a good investment during non-inflationary times, they are an excellent asset to your portfolio because they are considered a form of real estate. Like all real estate, you have to pay for it upfront, but unlike other standard forms of investment, you only have to pay taxes on them when they are producing. The art of buying and selling minerals and royalties can take some time to understand but the rewards can be huge for you and your family. If you've inherited your interests, it's important to speak to a trusted professional to help you decide what to do next. There can be major tax implications if you don't understand your options. Venergy Momentum is a private and progressive oil and gas firm in Austin, TX that specializes in educating and consulting mineral and royalty interest owners and non-op working interest owners. To learn more, please visit www.venergymomentum.com and subscribe to our channel for updates. Read our 5-Star Google reviews: https://bit.ly/venergyfivestar Schedule a time today to speak with CEO and founder, Kyle Venema: https://calendly.com/kylev-1/consult Play Video Play Video 01:01 Should I Sell My Mineral Rights? Before answering this question, sellers first need to be aware of the price gap between buyers and sellers that I find is nearly always present in every deal. When novice sellers are considering selling their mineral interests, more often than not, they think their minerals are worth A LOT of money. After all, this is probably what they have been told for decades, but it's not always true. So why is it hard for buyers and sellers to agree on a price? Sellers don't always take into account all the factors that buyers have to consider. It's a lot more than what they think and this video explains just some of the reasons why the price gap can be so large. This is definitely not an exhaustive list, only a list of the 5 most common factors that sellers overlook or don't know about when it comes to transacting minerals and royalties. If you are considering selling your minerals, read the full article at: www.venergymomentum.com/post/why-is-it-so-hard-for-buyers-and-sellers-to-agree-on-a-price. Also check out: "Should I sell my minerals and royalties?" at: www.venergymomentum.com/post/should-i-sell-my-minerals-and-royalties. Venergy Momentum is a private and progressive oil and gas firm in Austin, TX that specializes in educating and consulting mineral and royalty interest owners and non-op working interest owners. To learn more, please visit www.venergymomentum.com and subscribe to our channel for updates. Read our 5-Star Google reviews: https://bit.ly/venergyfivestar Schedule a time today to speak with CEO and founder, Kyle Venema: https://calendly.com/kylev-1/consult Play Video Play Video 01:57 11 Smart Reasons to Get Your Minerals Appraised Curious about the value of selling your mineral rights and how much mineral rights sell for? It's not always a simple answer. Getting a professional present or retroactive mineral appraisal is the first step in determining mineral rights value. Venergy Momentum Oil & Gas provides mineral appraisal services by a Certified Petroleum Engineer to help you determine what your minerals rights are worth. We can help answer your questions and guide you on what to do next. Values can change quickly, contact us today! Read our 5-Star Google reviews: https://bit.ly/venergyfivestar Schedule a time today to speak with CEO and founder, Kyle Venema: https://calendly.com/kylev-1/consult Play Video Play Video 01:49 Separating Your Family's Mineral and Royalty Estate - What to Know Dividing up family interests is a common practice for any number of reasons, and can be considered an advantage for all parties. Separation of family oil and gas assets can arise for any number of reasons: - Family members pass on and their interests need to be divided among heirs - Interests were held in a family business and for some reason it needs to be dissolved - Some family members want to sell and others do not - Family members want their share of the interests to be held as separate property - Family feuds - Out of some other necessity (i.e. financial needs) Whatever the reason, it's important to have a trusted professional who knows how to handle the paperwork, knows who to talk to, and most importantly, has experience handling family oil and gas matters. Read the full article at: www.venergymomentum.com/post/dividing-family-mineral-and-royalty-estate-what-you-should-know. Venergy Momentum is a private and progressive oil and gas firm in Austin, TX that specializes in educating and consulting mineral and royalty interest owners and non-op working interest owners. To learn more, please visit www.venergymomentum.com and subscribe to our channel for updates. Read our 5-Star Google reviews: https://bit.ly/venergyfivestar Schedule a time today to speak with CEO and founder, Kyle Venema: https://calendly.com/kylev-1/consult Play Video Play Video 00:59 Are My Mineral Rights Valuable? 3 Ways to Find Out. Selling mineral rights value - how much are my mineral rights worth? If you're a mineral or royalty owner, it's smart to ask yourself this question at least every two to five years. "Two to five years?!?!" Yes! The industry is always changing mostly due to worldwide cycles of supply and demand affecting the price of oil and gas but on a local level, determining the value of your specific interests depends on factors such as: *Lease terms and the Operator's obligations *The forecasts and drilling plans of the Operator(s) in the area your assets are located *The stage of development your interests are in (find out the stage your interests at: www.venergymomentum.com/post/should-i-sell-my-minerals-and-royalties) *Take-away capacity: Is there a market? Can the Operator sell the production? *and much, much more... If you're not keeping watch on your interests, you could be missing out on huge payout opportunities. The old adage, "never sell your minerals" is not always the best advice anymore. The only time this statement holds true is when they aren't worth anything! The best way to find out what minerals are worth is to get a professional mineral appraisal done by a Certified Petroleum or Reservoir Engineer. If you have inherited your mineral rights and have never had an appraisal done, or you haven't had an appraisal in the past two to five years, then you definitely need to consider getting one done asap. In this video are three high-level and simple ways to give you an edge on whether or not your minerals have value. And remember, you don't have to sell all of your mineral interests; you can sell 15%-25%-%50% or anywhere in between! Venergy Momentum offers mineral appraisal services, can answer all of your questions, and guide you on what to do next if you are considering selling your minerals. Read our 5-Star Google reviews: https://bit.ly/venergyfivestar Schedule a time today to speak with CEO and founder, Kyle Venema about what a mineral appraisal can do for you: https://calendly.com/kylev-1/complimentary-client-consultation-mra Play Video Play Video 02:19 7 Smart Reasons to Sell Your Mineral Rights Selling your mineral rights can be a wise choice if you need to respond to a life event, want to restructure your portfolio, or take advantage of a 1031 Exchange opportunity. Another reason might be to release the responsibility of managing the interests to your heirs who may not have the knowledge to manage them or possibly may not have a desire to own them. Whatever the reason, selling doesn't have to be an arduous process. Mineral values are constantly changing and getting an appraisal is the best place to start. Venergy Momentum offers mineral appraisal services, can answer all of your questions, and guide you on what to do next if you are considering selling your minerals. Read our 5-Star Google reviews: https://bit.ly/venergyfivestar Schedule a time today to speak with CEO and founder, Kyle Venema about what a mineral appraisal can do for you: https://calendly.com/kylev-1/consult

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