September 19, 2017

Should I Sell My Mineral Rights: Landowner Tips

Have You Received a Promising Valuation?

The Higher the Value the Lower the Risk.

While selling your mineral rights can generate extra revenue for many landowners, it may not be the right choice for every situation. If you’ve conducted a valuation of your mineral rights, then you should have a more clear picture as to whether or not you should sell your mineral rights. Due to the volatile nature of the oil and gas industry, timing plays an important role in getting the highest possible value for minerals.

Contact Ferrari Energy to set up a mineral rights consultation and uncover the potential value hiding beneath the soil.

Is the Property Located in Mineral-Rich Regions?

Certain Locations are Known to Produce More than Others.

Even if you’ve ran an extensive analysis of the minerals under your property, the physical location of the land impacts its value. Many landowners hold property in geological regions proven to be rich in oil and gas. Mineral rights buyers are more likely to offer you a higher price if the property is located in such areas. If you are located in mineral-rich regions, you’ll have a much easier time selling your mineral rights for a good value.

Find More Information in Our Mineral Rights 101 Guide.

Ferrari Energy - should I sell my mineral rigthsThings to Consider Before Selling Mineral Rights

Should I sell my mineral rights and what are the implications of doing so? If you’ve been asking yourself if you should sell your mineral rights, there are a few factors you’ll want to think about before making any final decisions. These landowner tips should help you make a more informed decision.

Consider These Factors Before Selling:

Higher Cost of Oil Means Higher Value

The cost of oil and gas will directly affect the value of your mineral rights.

Production History Impacts the Value

The value of your mineral rights is impacted by the history of production.

Cash Now is Better than Cash Later

Time value of money makes cash now better then cash later.

Transfer the Risk of Mineral Rights Ownership

When you sell your royalties you are transferring the risk of ownership to the new buyer.

Find New Investments to Diversify Your Portfolio

You can invest your sales earnings into other markets to lower your risk and protect your income.

Consider the Burden of Estate Management

There may be a strong burden for heirs to mineral rights than if you were to liquidate your holdings beforehand.

Tax on Sales is Lower than Tax on Royalty Earnings

Most mineral rights sales are taxed at 15% whereas royalty income can be as high as 39%.

Ferrari Energy - Owners of mineral rightsMore Mineral Rights Resources

Should I Sell My Mineral Rights?

We hope we’ve helped you answer your question, “Should I sell my mineral rights?”, and that you feel confident about your decision to sell or not to sell. Our team strives to provide valuable landowner tips, resources and education to our clients. Contact Ferrari Energy today for a consultation or to request more information about Mineral Rights.

Discover More Insider-Tips in Our Comprehensive Mineral Rights 101 Guide.

Explore More Landowner Resources

Explore More Landowner Resources