Parsley Energy buyout

Section 19, block 7 H&G RR co. Survey, Reeves County A39


I’ve been receiving royalty checks for three years from Parsley Energy for 2 horizontal wells.

I read that Parsley Energy has now been bought out by Pioneer.

Will I have to do anything as far as paperwork?

I haven’t heard from either company.

Thank you.

Susan Titus

Much of the time, these buyouts go smoothly. You may get a new division order from the new company or you may not. Just make sure that the decimals match from an old check to a new check. There is sometimes a bit of a delay in paying during the handover. Any checks “missing” for three months would have me calling to find out why.

If your checks are usually above the minimum on your division order, then you should get regular payments. Might be a good time to change your minimum from $100 to $25 on a new division order so in the out years with low production, you will get more regular checks.


How can I tell what the minimum is set at?

I’ve received monthly checks except for one month when the price of oil had fallen really low.


Susan Titus

Your original DO was probably set at $100. You can change it at any time. But probably good to wait until the Parsley deal is final and you have a new DO. You can guess what you have the minimum set by comparing the check before the missing month and the check after. If you had more than $100 that first month, then nothing and then more than $100 the next month, you are probably at a $100 minimum. Be wary of any DO that is more than one letter size page long as it may contain language that is not beneficial to you. Use the NADOA form instead which is allowed and has the “no terms of the lease will be changed by the DO” or wording similar to that. You can find it on the NARO website. Use the most recent one.

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Thank you for all the information!

Susan Titus

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