Do you think you’re a responsible mineral and royalty owner?
Whether you own Permian Basin mineral rights, Eagle Ford Shale royalties, or Barnett Shale mineral rights, your duties as an owner should be guided by the five critical behaviors outlined below.
If you need help getting started on the right foot, Venergy Momentum Oil and Gas can help. Our 5-star Google reviews and A+ rating from the Better Business Bureau prove we’re a trusted resource for mineral and royalty owners all over the US.
We’ve designed our suite of services to make your ownership experience better and easier. Schedule a complimentary consultation with us today to get the most out of your investment today.
The Foundations of Mineral Ownership
1. Know What You Own
In the vast expanse of some of the most active oil and gas exploration areas in the US like the Permian Basin, mineral and royalty ownership means understanding exactly what you own, particularly what you own in Net Mineral Acres and Net Royalty Acres. Failure to know this information can cost you dearly, especially when wanting to know how much are minerals worth. We don’t want this to happen to you so we have broken it all down here in this guide.
2. Stay Informed of Your Asset’s Activity
Those who own Eagle Ford Shale royalties, Barnett Shale mineral rights holders, or Permian Basin mineral rights are always one step ahead, keeping a vigilant watch on the latest drilling activities and market trends that can affect their returns. They stay in active communication with knowledgeable Landmen, keep close tabs on their royalty statements, and maintain a healthy and open curiosity about the future of mineral and royalty ownership because they treat their interests as an asset, not a family heirloom.
3.You Have Impeccable Record-Keeping
For Texas mineral rights, New Mexico mineral rights, and more, organization is key. Digitally cataloging deeds, leases, and revenue statements ensures that all documents are at your fingertips when needed. Having these documents organized is especially important when you decide to sell down your interests in the future. Without them, a landman or attorney will have to bill you for their time and expenses when retrieving copies from online depositories, county courthouses, etc. And don’t forget, always let another trusted family member or friend know where these documents are stored.
4. Know When is the Best Time to Sell Your Minerals
Knowing the optimal time to sell your interests can be the difference between a good decision and a great one. There are many, many factors to look at when it comes to the optimal time to sell your minerals, but we’ve compiled a Comprehensive Guide to Selling Your Minerals to give you a great overview on this topic. If, after reading our guide, you feel that you could benefit with a more personalized approach, schedule a complimentary consultation with Kyle D. Venema, the owner of Venergy Momentum.
5. Unyielding Determination During Mineral Rights Sale
A clear vision and steadfast resolve are essential, especially when considering the sale of minerals and royalties in Texas, New Mexico, Louisiana, or anywhere else in the US! Staying focused on your long-term goals and the bigger financial picture will always keep you on the right track.
When Venergy takes clients through the mineral sale process, they appreciate how much work we put into gathering the information that buyers want to see, by closing any gaps, and providing a clean and concise story showing your mineral value. Our clients rave about how we kept them informed every step of the way and how satisfied they are because we got the best offers for their minerals.
Expanding on the Basics
Legal and Geological Navigations
Understanding the specifics of Texas mineral rights laws and the unique geological features of regions like the Permian Basin is crucial for owners looking to maximize the value of their holdings. Venergy has always been focused on educating mineral and royalty owners so we can help you understand these laws and the various pay zones in the areas your interests are located in.
Royalties and Revenue Streams
Whether you receive checks from Eagle Ford Shale royalties or somewhere else, realize that these signify more than profit; they represent the culmination of strategic negotiations and market savvy that should never be forgotten about. Sitting back and collecting royalty checks is NOT a responsible trait listed here; in fact, it’s a very irresponsible thing to do! You could be missing out on a significant lump sum payment and be paying more in taxes over time if you miss out on the best time to sell your minerals.
Want more good news? You don’t have to sell all your interests! You can sell some and keep some. Talk to us about this with a complimentary consult. You can book a time that fits your schedule here.
Tax Implications
I’m sure you (and your bank account) know how much you are paying in mineral rights taxes every year. Did you know that you may end up paying more in taxes over time if you missed out on selling your mineral interests for a one-time lump sum? Selling your mineral rights does trigger a tax consequence, but if you’ve owned your mineral rights for over one year, they become subject to the long-term capital gains tax rate, which is between 15-20%. That’s an opportunity for significant tax savings since annual mineral rights taxes are taxed at ordinary income levels, and don’t forget to include paying for county taxes, as well.
Have you thought about how much you could be saving in taxes?
Time is Money
In addition to this, it may take you an extremely long amount of time to accumulate in monthly royalties than with what you could have within 90 days with a significantly large lump sum payment. Would you rather collect $500,000 in one lump sum or accept $1,000/month for 500 months? That’s 41.67 years! This assumes your royalty payments will stay at $1,000/month which they never do because minerals are an ever-depreciating asset. (Sorry!)
Here at Venergy, we can’t stop giving two pieces of our most important advice:
- Treat your asset as an investment, not a family heirloom!
- You don’t have to sell all your assets! You can sell some and keep some!
Embarking on Success: Your Mineral Rights Journey with Venergy Momentum
When it comes to mineral rights and royalties, Venergy Momentum Oil and Gas is your reliable partner. We have a history of doing great work and are always looking to the future. If you need help with your mineral and royalty assets, we are ready to help you. Call us at (713) 855-9548, email or visit Venergy Momentum to find out more about how we can turn your mineral assets into a powerhouse of potential.
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