Why Sell?
Reasons to Consider Selling
If you are contemplating the sale of your mineral rights but are uncertain whether it is the right decision for your situation, we encourage you to contact us to discuss your options.
Tax Advantages
Selling your mineral interests can offer significant tax benefits, including the opportunity to capitalize on historically favorable capital gains tax rates. In addition, proceeds from a sale may be reinvested through a 1031 exchange into other qualifying assets, potentially deferring tax liabilities. For more information, please see The Benefit of Divesting.
Declining Production
Oil and gas assets are inherently depleting. Over time, production from wells naturally declines, resulting in reduced royalty income. This is especially true for horizontal wells, which often experience a steep decline in output within the first month of production.
Mitigating Timing Risk
Retaining mineral rights assumes that future development will occur — a process that can be delayed for years or may never happen, depending on market dynamics and operator interest. Selling your mineral rights provides immediate compensation and eliminates the uncertainty of future development.
Hedging Against Oil Price Volatility
The oil market is highly volatile, and fluctuations in commodity prices can significantly affect the value of your royalty payments. Divesting your mineral interests protects you from the downside risk of falling oil prices and provides a predictable financial outcome.
Increased Flexibility and Administrative Relief
Selling your mineral interests removes the burden of managing monthly production statements, division orders, and correspondence with multiple operators. This allows you to focus your time and capital on other priorities or investment opportunities.
Investment Diversification
Our Vision
Our Vision is to be Kingdom focused and to use this focus to reach the lost and share Christ.