Hello everyone, I am currently receiving monthly royalty checks from Kinder Morgan, Energen, Occidental, Devon, Chevron, Plains Marketing, as well as Sunoco, all from my current Texas mineral right properties. Is there anyone on this forum that knows what may be a reason for declining monthly revenue for the past couple of months? It’s down by 10%-15%. I am no expert in this area, I received these properties as inheritance from my mom. Someone in my family is freaking out it will keep declining in value and he keeps telling me to sell them. I need some thoughtful advice from this forum. Thank you in advance.
Why would you want to sell? Did you buy them? If they give you monthly income and didn't cost you anything, why give it away!
You could keep your share and have others sell their own shares.
The price of the product is affected by world production and global politics. Don't sell; wait it out. What you have there is worth something; the money you will receive from a sale may soon be worthless. The US government can get the fed to print endless amounts of money. But the US government cannot print oil, gas or jars of peanut butter.
Russia is dumping the US dollar on the world market. Other nations will soon follow. The day of the petro dollar seems to be coming to an end.
Keep hard assets and dispose of dollar denominated instruments. That is my take on the situation.
Good luck.
never sell your minerals, price of oil is down & so will be the value of your minerals, oil price will recover sooner or later, but minerals sold will never be recovered.
That is bad advice
harry said:
never sell your minerals, price of oil is down & so will be the value of your minerals, oil price will recover sooner or later, but minerals sold will never be recovered.
Well, I guess it all depends upon the situation. If one is desperate for cash or terminally ill that can affect one's choice. We cannot judge based upon what we know about the situation. We can only answer as to what we would do in such a situation.
never sale your rights, the oil prices will go back up, last time I looked GM and ford and still making Tahoes,
and F-150s, think about it, there is only so much oil in the world, we are not making any new oil when OPEC has had enough they will cut production and oil will go back up, it happened in 09.
HA! Does that "someone in your family" want you to sell your mineral rights to him?
Inheritance from your Mom? If you're not sentimental - get rid of them. If you don't need the money, get rid of them. If you don't think you Mom was trying to take care of you past the grave - get rid of them! If you think you can wait until the market goes back up, then enjoy your "free ride" and keep 'em.
Good luck,
Pat
Thinking about it, that person in your family that is so anxious to cash, ask him how much he wants for his share?
Buy him out. If he has no interest to sell, it is none of his business what you do with yours.
Oil prices are down around 50% in the past few months and natural gas prices have also tumbled, your checks will reflect this. Your checks will fall even further as they are months behind. If you were going to sale, months ago would have been the better time to sell. Oil prices could go up but they could also fall further. The advice given by anyone is only their guess and you'd do about as well flipping a coin as even an expert who trades futures for a living can not guess what will happen next with prices every time. Doesn't matter if you inherited or purchased it, it should come down to what is most logical for you on what to do and if you are treating it as an investment rather than a family heirloom. People have lost over the long term by selling while others have gained by selling. If you sold in the early 1980's before the bust and invested that in Microsoft you'd have done far far better off than most who didn't. Your checks will probably go down more as you are being paid current prices on current production and with all wells there is a decline in production on it's way to being plugged, but there is a possibility of more wells. As for buying someones mineral interest, even if you know what your doing you can lose money.