We are getting offers to buy our mineral rights. What is a good price?
A lot of factors go into that; how many acres do you own, and what are you currently leased at?
There are multiple levels of buyers: End Buyers, Middle Priced, Flippers, Low End.
You want to deal with the middle to high-end buyers and avoid those flipping for a huge profit. You can usually tell people’s motives by their professionalism, letterhead, and how eager they are for you to sell. If they are not honest and willing to help you make an important decision, then avoid them.
The other thing to consider is whether or not you should sell. Do you have a pressing need, what is your timeframe, are you just curious, etc. Do you know what your capital gains tax might be if you sell…
There are a lot of mineral buyers out there. Each one of them intends to make a profit off of you. Would you rather have that profit yourself? Are you willing to wait for it? If you knew they were about to drill more wells, would you be willing to wait for the royalties?
Offers are based upon the amount of acres you have and the royalty at which they are leased or unleaded, the production of the current wells and the profit comes from any future wells.