Have questions? Don’t worry; most people do.
To help you, we’ve assembled answers to some of the most commonly asked questions. If you don’t see the answer to a question you’d like to ask, just fill in the form at the end of the section and someone will be back to you right away.
COMMONLY ASKED QUESTIONS
Is this a bad time to sell?
There’s no question that market conditions have been better and, in fact, could get worse. Regardless of conditions, our goal is always to present the best possible opportunity to you.
Why do royalty revenues fluctuate?
This is a common question, and the simplest answer is there are a lot of reasons that can cause checks to change:
- • Oil & gas prices
- • Production variations
- • Accounting / Deductions
- • Well decline
- • New well / Old well
When you sell your royalties, you’re selling the future interests the well is estimated to produce. In exchange for that, you receive a lump sum as your payment. Your monthly royalties are based on your share of the production in a well, an amount that can fluctuate depending on factors such as how much your well(s) and any surrounding wells produce, who is operating the well(s), as well as the current market price of oil and gas. With 30 years of oil and gas industry experience behind us, we can help you decide the best time to sell your producing royalties, taking your personal situation and the state of the industry into account.
If it’s still not an easy decision, consider selling only a portion of your royalties. We regularly purchase partial interests, as many landowners prefer to maintain an interest in wells drilled on their property. It’s all part of being easy to work with.
How does selling my royalties affect my taxes?
This is a common question we are asked often, and it is important that you know the difference between leasing and selling. If you lease your land for oil and gas production you might receive a hefty tax bill. This is because the IRS treats signing bonuses as regular income.
However, if you sell your royalties you might qualify for long-term capital gains tax treatment. If you've owned your oil and gas minerals for more than one year, the payment you receive for selling your royalties may be subject to the lower capital gains tax rate.
We encourage landowners to refer to a certified public accountant for tax advice.
What does Vista get when we buy your royalties?
Selling your oil and gas royalty is merely selling the future royalties you might receive for the wells on your land that are producing. As a full or partial royalty owner, we don’t own your mineral rights, and can't execute more leases on your property should additional wells be drilled. We also aren't entitled to any future lease bonuses you might receive if you allow more wells to be drilled.
What happens if my oil and gas minerals don’t produce?
Vista Royalty receives money only if your oil and gas minerals are producing, or drilled and pooled with a producing well.
What is the difference between owning a mineral and royalty interest?
A mineral owner has the right to negotiate and execute the oil and gas lease and receive lease bonus monies. The mineral owner can negotiate lease bonus amounts, royalty rate (3/16ths, 1/5th, etc.) and length of lease. As a mineral owner you have some more control over how a lessee (owner of the lease) conducts their operations upon a tract of land.
A royalty owner typically receives income or royalty only after production of oil and gas commences. Royalty owners usually do not have the right to negotiate or execute oil and gas leases nor receive lease bonus monies. However, sometimes a royalty owner may have some leverage to negotiate more favorable circumstances depending on how drilling and completion operations are conducted.
Why do most people sell their mineral or royalty interest?
There are a lot of reasons:
- • An attractive offer was made and accepted
- • Estate and tax planning
- • Asset diversification due to heavily weighted portfolio in oil and gas
- • Consolidation of personal assets and reduce accounting
- • Need funding for matters or items due to untimely personal circumstances
- • Need funding for college tuition, business equipment or other assets
How do I request an offer?
Click on the REQUEST AN OFFER and fill out the requested fields
Call us Toll Free at 844-881-6502
Email us at firstname.lastname@example.org or
Send us a fax to 214-261-2233
YOU CAN EXPECT A RETURN CALL WITHIN 24 HOURS OF CONTACT WITH VISTA!
What kind of information should we provide to help the evaluation move faster?
In order to properly evaluate your interests we will need copies of the following:
- • Copies of your last 3 to 6 month’s check details; and
- • Copy of the deed you or other instrument of conveyance where you acquired your
asset. If by will then a copy of that person’s will; and
- • Copy of the recorded oil and gas lease that your minerals or royalty are subject to; and
- • Information relative to any lien, mortgage or any other encumbrance to the ownership
of your mineral or royalty interest.
How long should we expect the evaluation process to take?
Depending on the characteristics of your assets the evaluation process typically takes 3 to 5 days. Should you own multiple assets then it may take some longer. The more information you are able to provide typically results in a shorter evaluation period. Also, once we gather all the information we need we will contact you to give you a more accurate timeframe.
Am I obligated to accept Vista’s offer?
No. Should Vista choose to evaluate your royalty interest then you may choose to accept the offer or not.
Are there any costs that I will be responsible for?
Not typically. We generally cover 100% of all costs for their acquisition of your royalty interest.
Will I have to pay income taxes if I sell and how much?
In most cases, the only tax that you will be responsible for paying is your federal income tax. Depending on your location, you may also need to pay state income tax. Please consult your tax advisor for information concerning your specific situation.
How will I know when an offer is the best offer I should hope to receive?
First and foremost, our process is transparent and fair. At Vista Royalties, we don’t just slide a number across the virtual table and expect you to decide whether it’s the right one for you or not. Instead, we take the time to talk with you, assigning a dedicated single point of contact who works with you throughout the entire process. Your point person wants to hear your story, knows how to evaluate your royalties and associated wells, and will answer all your questions and concerns.
What if I receive a larger offer from someone else?
The largest number doesn’t always mean the best offer. Sure, the bottom line figure is an important part of the offer you hope to receive for your oil and gas royalty interests. But the truth is, more goes into estimating the value of your producing oil and gas royalty interests than simply the average of a few recent statements.
There are a lot of options and possibilities. What should I do?
You’ll get top dollar, regardless of market conditions. Things like current market price and demand, production history, well count and life expectancy, geology, and so on. We will work hard on your behalf to maximize all possibilities.
This seems like a confusing process. What if I don’t understand the offer?
You can count on us to take the time to explain all the factors that determine the offer, without overwhelming you with legalese or industry-speak. With 30+ years of oil and gas industry experience, our CEO sets the standard for knowledge and expertise, insisting on providing every customer with a single point of contact, dedicated to helping you understand the information. We never, ever pressure you to accept an offer that makes you uncomfortable in the least. And, once you have accepted, that hassle-free experience includes less time waiting for your payment, with our near simultaneous transfer of payment and deed.
Why VISTA instead of the other guys contacting me?
Ultimately, we want you to make an informed decision regarding the value of your oil and gas royalties. We want you to feel like you’re our priority and not just another number. That’s why we offer you more than just the best offer. We offer you something you can believe in.
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