We’re here to make the process fair, transparent and easy.
There are many reasons people choose to sell their oil and gas royalty interests.
Maybe you need cash for retirement, to finance education or reduce debt. Perhaps you inherited the royalties and want to save on federal taxes, diversify assets or pay off a mortgage. No matter whether a major life change has your focus or you’re simply interested in capitalizing on a seller’s market, we approach valuation the same way: with you in mind.
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.
Royalty revenues fluctuate.
We are often asked why royalty revenues fluctuate, 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 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 the timing of selling my royalties affect my taxes?
Every situation is different, depending on your personal circumstances. We encourage landowners to refer to a certified public accountant for tax advice.
Is there a specific time when leasing is better than selling?
This is a common question we are asked often, and it is important that you know the difference between the two. 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. Again, our advice is to refer to a certified public accountant for tax advice.
WHAT ARE MY OPTIONS?
1. Receive a free quote at no obligation.
2. Sell all your royalties.
3. Sell an agreed upon portion of your royalties.
4. Sell your royalties for an agreed upon period of time, allowing you to retain your asset.