Family Minerals and Royalties

Category: Family Minerals and Royalties

engineers working at an oil rig

Assessing and Valuing Mineral Rights: A Guide to Mineral and Royalty Appraisals

Mineral rights are not just legal entitlements; they are opportunities to harness the value beneath your land. Understanding the potential of these rights is the first step toward unlocking their true value. We specialize in appraising and managing these unique assets, ensuring that you are fully informed and ready to make the best decisions for […]

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Maximize Your Investment With 1031 Exchanges

1031 exchanges are a smart way for owners of minerals and royalties to delay paying capital gains tax on property sales. This IRS rule lets you put off paying taxes when you trade mineral or royalty interests for other “like” properties that qualify. At Venergy Momentum, which has an A+ rating with the Better Business […]

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Venergy Momentum is a land, mineral and royalty management company specializing in helping individuals, families, family partnerships and/or trusts manage their current land, mineral and royalty interests.

We are experts in title, leasing, and the acquisition and divestiture of mineral and royalty assets and operated and non-operated working interests.

Location

3300 Bee Caves Rd Suite 650 #110,
Austin, TX 78746

Mineral rights are not just legal entitlements; they are opportunities to harness the value beneath your land. Understanding the potential of these rights is the first step toward unlocking their true value. We specialize in appraising and managing these unique assets, ensuring that you are fully informed and ready to make the best decisions for your future. 

With an A+ BBB rating and 5-star Google reviews, our team is committed to providing top-tier service. Interested in learning more or ready to take the next step? Visit us at Venergy Momentum, explore our services, or schedule a consultation to discover how we can help you maximize the value of your mineral rights.

The Importance Of Mineral Rights

Mineral rights grant owners the power to extract and profit from natural resources beneath their land, such as oil, gas, coal, and metals. These rights are separate from surface rights, focusing solely on subsurface resources.

Their value is significant due to the potential for substantial financial returns. Extracting resources like oil and gas can yield considerable revenue, especially when commodity prices are high, but there are many other factors at play to determine the value of your minerals. This positions owners to develop these resources themselves, or more commonly, to lease their rights so an oil and gas operator can develop them, so they can start to receive upfront payments and royalties.

Mineral rights are limited, adding to their value, particularly in areas with abundant resources like the Permian Basin. This scarcity, coupled with the fluctuating demand for resources and advancements in technology, can increase the value of mineral rights over time, making them a strategic investment for long-term returns and financial security.

Effectively understanding and managing your mineral rights is crucial, whether you’re considering selling mineral rights in Texas, leasing, or holding onto them. Making informed decisions begins with recognizing their significance and potential. Professional guidance is essential in this process, ensuring that you maximize the benefits of your mineral rights for today and tomorrow. For those in Texas, understanding how to sell mineral rights in Texas and the Texas mineral rights laws can significantly impact decision-making. 

For more insights into optimizing the management of your mineral rights through 1031 Exchanges and professional appraisals, visit Venergy Momentum’s detailed discussions on 1031 Exchanges and appraisal services.

Common Misconceptions About Selling Mineral Rights:

Understanding the value and strategic timing for selling mineral rights is critical. It can be a very costly mistake to sell your interests in a rush if a potential buyer is pressuring you to accept their offer because in 99% of those cases, those offers are going to be very low. Watch this video to learn what to do when buyers start to contact you. 

Factors such as market trends, legal considerations, and the specific stage of development of your minerals  are in play a significant role in determining the right time to sell. A rushed decision can lead to selling at a lower value than what might be achievable under better conditions. Patience and a well-informed strategy, supported by professional advice can lead to more advantageous outcomes for mineral rights owners.

Understanding How To Value Your Mineral And Royalty Interests With Appraisals

There are two types of appraisals – Current and Retrospective. 

Current appraisals give you the value of your interests as they stand today. They are primarily needed for those who are planning on putting their interests into a trust since the trustee will need to know their current value.

If you want to know what your interests are worth, the best course of action is to take your interests to the active buyer market to see what they are willing to pay. It’s the most accurate way to get their value because as we always say to our clients, “Something is only worth what someone is willing to pay.”

If you are interested in selling your mineral rights, learn more about our simple, yet highly successful 5-Step Selling Process. Be sure to read our client testimonials and 5-star Google reviews to see how happy our clients are with our services.

Retrospective appraisals are needed for those who have inherited their interests and plan to sell them in the future, or have sold them. The primary reason to get a Retrospective appraisal is to reduce your tax obligations for when they are/were sold. You need to know the value of your interests at the time of inheritance so you can use this value to determine the amount in taxes you will pay. This is called your basis. If you do not obtain this value with a Retrospective appraisal, and instead use the value that you sold them for, your taxes owed are likely to be much, much higher. 

Recently, we had an individual reach out to us saying his accountant was planning on using the county tax roll information to value his interests. This is a big NO-NO! When we explained to him that he could pay significantly less, or maybe even zero, taxes with a Retrospective appraisal, he was shocked at the misinformation he received from his professional accountant and also grateful that he called us!

Engineers working at an oil rig for mineral rights management.
engineers working at an oil rig

Real-World Applications And Case Studies:

Read our blog about Drew, a mineral and royalty owner, who reached out to us looking for advice on valuing his interests in Karnes County. It’s an excellent resource to learn about Current and Retrospective appraisals.

Do I Really Need an Appraisal?

Alert! Not All Appraisals Are Created Equally:

There are many companies out there offering mineral and royalty appraisal services, and some of them are legit and quite good. Others are offering low-cost appraisals generated by someone in their organization who is not legally qualified to generate this report. For retrospective and current appraisals that will have the information submitted to legal authorities, it’s highly recommended to ensure the information you are submitting is prepared by a licensed petroleum or reservoir engineer. These professionals are bound by their license to provide accurate information, and their information will stand in court, if need be.

Be sure to ask the appraisal company you are interviewing who will be generating your appraisal and ask for client references.

At Venergy, we believe in accuracy and accountability, and all our appraisals are generated by our Licensed Petroleum Engineer. 

Schedule your complimentary consultation for your mineral appraisal.

Conclusion:

Whether you are looking for a current or retrospective value for your interests, Venergy Momentum’s expert appraisal and consulting services can help you get through this process. With mineral and royalty ownership comes responsibility. It’s important to stay abreast of changes in your investments and treat them as an investment. Just because they may have been worth a lot of money at one time does not mean they will remain so. For personalized advice and to explore how we  can assist you further, consider scheduling a consultation below and review the full list of our services.

Hours of Operation:

  • Mon: 8AM–5PM
  • Tue: 8AM–5PM
  • Wed: 8AM–5PM
  • Thu: 8AM–5PM
  • Fri: 8AM–5PM
  • Sat: 11AM–3PM
  • Sun: Closed

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Phone: (713) 855-9548

Questions?: Schedule a Consultation or Email us

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