While a quick Google search will get you in the general area when looking for mineral rights buyers, the process is a little more complex than that. The challenge is knowing which royalty buyer to work with – indeed, for every legitimate mineral buyer there are a plethora of others who would like nothing more than to take advantage of you.
Before you even get into selling mineral rights, you should have something of an idea about the types of people these oil and gas royalty buyers are.
When it comes to legitimate buyers, there are essentially three kinds:
• Individuals (typically wealthy folks, though others may be looking for oil and gas royalty income as a way to generate return)
• Private Companies (typically those boasting an in-house team to evaluate deals)
• Private Equity-Backed Entities (these companies receive their funding directly from Wall Street or other private equity-backed funds)
Ten Cow Holdings Pro Tip: So long as the mineral rights buyer is legitimate, any of the above types of buyers is safe to consider selling to.
It’s also worth noting that operators sometimes purchase oil and gas mineral rights; however, operators nearly always pay below market value. We can tell you that when an oil and gas operator approaches you to purchase your mineral rights, this is a good indication that they soon plan to drill – but do not sell mineral rights to an operator without considering competitive bids.
Finding the Most Reliable Mineral Rights Buying Company
Okay, so when it’s time to sell your mineral rights, you must find a reliable company to work with. Because this can be a complicated process, as we alluded to in the beginning, it’s important to work with someone you can trust to help you through it.
The following represent what we believe are the top things to keep in mind during your search.
• Do Your Research – Read reviews and compare costs because there are many purchasers out there.
• Ask Questions – Have questions or concerns about selling your mineral rights at any point during the process? Don’t hesitate to ask. It’s vital that you understand all of the details prior to signing any papers.
• Get a Second Opinion – It might be helpful to talk to someone who has experience or knowledge in this area if you’re not sure if you should be selling your mineral rights.
• Look for Experience – One of the most important things we can recommend when choosing a mineral rights buyer is to look for one boasting a great deal of experience in the field, as you can rest assured knowing they have a handle on what they’re doing – and that the sale will go smoothly.
• Check the Company’s Background – -Make sure a company is reputable before you work with them; a reliable buyer will offer no resistance when providing you with this information.
• Go with Your Instincts (Trust Your Gut) – It is best to walk away if you’re not comfortable with a certain buyer; it is vital that you find someone you can trust when it comes to selling your mineral rights.
At Ten Cow Holdings, we pride ourselves on being a reliable and trustworthy source for all of your mineral rights questions. From landmen and inherited mineral rights to royalty interest and everything in between, you can contact us today at (210) 960-1564 to discover why we are one of the most trusted names in this industry.
