When is the Best Time to Sell Minerals to Get the Max Value?

There are numerous factors to consider when selling mineral rights and timing is a key component. Owning minerals has some similarities to real estate, after all it is basically real estate underground. As with most assets many owners look to sell when the market is hot. Then, putting that money back to work or enjoying the cash for other purposes.

Are There Any New Developments Near Your Minerals?

Take a look at where your minerals are located. Are there any new developments? Is there any existing  pipeline infrastructure, new permits or new wells that have been drilled? If not, then this might not be the best time to sell. When you go to sell that asset, the price you get will be dictated by these various factors and will drive the price up or down.

Is There Any Oil & Gas Production Nearby?

  • Do you have a current Oil and Gas Lease on your minerals?
  • Is there any oil or gas production within 10 miles?

If not, then your minerals aren’t worth as much in the current market. However, if an Oil and Gas company negotiates a lease with you and Operators start bringing in wells around you then your minerals go up in value. Additionally, if wells are producing, being drilled or there is new permit activity, you will get a higher price per acre. Any credible buyer must consider all variables when coming up with a custom offer. Buyers that throw out prices per net acres without researching the specifics will often reconsider their offer once they take a closer look, or it possibly wasn’t a good offer in the first place. As a seller of mineral rights, it’s important that you know the right questions to ask.

Is There a Plan For Future Development?

For Mineral Companies to buy your minerals at a premium there has to be significant near-term upside for development. Meaning there needs to be some cash flow associated with the minerals or a plan for new wells in the future. A section of land with 1 producing Horizontal typically well is not worth as much as a section with 2 drilled Horizontals and a permit for an addition future well.

Ask the Pros For Advice on Selling Your Mineral Rights

There are many different levels of development for minerals and where you are in that process will directly affect purchase offers. If you would like to learn more about the minerals you or a family member own or would like a no obligation offer, call Stag Minerals. Our Certified Professional Landmen will take a look at your unique mineral situation and answer all of your questions.

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