How much are my mineral rights worth?

The value of mineral rights depends on several factors including location, production history, proven reserves, current market prices, and lease terms. Our experienced team provides free mineral rights appraisal using industry-leading valuation methods. Factors we consider include nearby well production, geological surveys, and current commodity prices.

How do I sell my mineral rights?

Selling mineral rights involves several steps: 1) Get a competitive mineral rights offer, 2) Review your deed and title, 3) Obtain multiple offers from qualified mineral buyers, 4) Negotiate terms and closing timeline, 5) Complete title work and documentation, 6) Close the transaction. Buckhead Energy streamlines this process with quick closings and competitive offers.

What is the best company to sell mineral rights to?

The best mineral buying company offers fair market value, transparent pricing, quick closings, and professional service. Look for companies with proven track records, positive landowner reviews, and expertise in your specific basin or region. Buckhead Energy has been acquiring mineral rights since 2007, with successful transactions across 33 states.

Should I sell or lease my mineral rights?

The decision to sell or lease mineral rights depends on your financial goals, risk tolerance, and market conditions. Selling provides immediate cash with no ongoing management, while leasing offers potential long-term income but requires active management. Consider factors like current commodity prices, development potential, tax implications, and your need for immediate capital.

What are mineral rights?

Mineral rights are the legal rights to extract and profit from minerals beneath the surface of land, including oil, natural gas, coal, and other valuable substances. These rights can be owned separately from surface rights. Mineral rights ownership entitles you to lease payments, royalties from production, and the right to sell these assets.

How long does it take to sell mineral rights?

The timeline to sell mineral rights typically ranges from 30-90 days, depending on title complexity and documentation requirements. At Buckhead Energy, we streamline the process: initial evaluation and offer within 7-14 days, title review 2-4 weeks, and closing within 30-45 days of accepted offer.

How to Read Your Oil & Gas Royalty Statement

Why Understanding Your Statement Matters

Your royalty statement tells you exactly how your payment was calculated. Learning to read it helps you:

Verify accuracy: Catch errors in production or decimal interest

Track production: See if wells are declining or stable

Understand deductions: Know what's being taken out

Make decisions: Better information for sell vs. hold choices

Key Components of a Royalty Statement

1. Owner Information

Owner name: Your name as it appears in their records

Owner number: Your unique identifier with this operator

Address: Where they send your checks

2. Property/Well Information

Well name: Identifies the specific well producing

API number: The well's unique government-assigned ID

Property number: Internal tracking number

Location: State, county, and legal description

3. Production Details

Production month: When the oil/gas was actually produced (usually 2-3 months before payment)

Oil volume: Measured in barrels (BBL)

Gas volume: Measured in MCF (thousand cubic feet) or MMBTU

NGL volume: Natural gas liquids, if applicable

4. Pricing

Oil price: Price per barrel received for the oil

Gas price: Price per MCF or MMBTU for gas

Gross value: Volume × Price before deductions

Understanding Your Decimal Interest

Your decimal interest (also called "owner decimal" or "interest decimal") is the fraction of production revenue you're entitled to. It combines:

Your mineral acreage out of the total unit acres

Your royalty rate from the lease (often 1/8 or 3/16)

Unit spacing if multiple tracts are pooled

Example calculation:

You own: 40 net mineral acres in a 640-acre unit

Your royalty rate: 1/8 (0.125)

Decimal interest: (40 ÷ 640) × 0.125 = 0.0078125

Common Deductions Explained

Depending on your lease terms, you may see various deductions on your statement:

Production Costs

Gathering: Cost to collect gas at the wellhead

Transportation: Moving product to market

Processing: Separating gas components

Compression: Pressurizing for transport

Other Deductions

Severance tax: State tax on production

Ad valorem tax: Property tax in some states

Marketing: Selling the product

Other: Varies by operator/lease

Note: Whether deductions are allowed depends on your lease language. Some leases specify "free of costs" royalties, while others permit certain deductions. Review your lease if you're unsure.

How Your Payment Is Calculated

Step 1: Production × Price = Gross Value

Step 2: Gross Value – Deductions = Net Value

Step 3: Net Value × Your Decimal Interest = Your Payment

Example:

Well produced 1,000 BBL oil × $70/BBL = $70,000 gross

Less deductions (5%): $70,000 – $3,500 = $66,500 net

Your decimal (0.0078125): $66,500 × 0.0078125 = $519.53 royalty

Red Flags to Watch For

Decimal interest changed: Should remain constant unless you sold a portion

Unexpected deductions: New line items that weren't there before

Price much lower than market: Should be reasonably close to published prices

Negative adjustments: "Prior period adjustments" taking back money

Missing wells: Wells you know are producing but don't appear

If you notice any of these issues, contact the operator's owner relations department. Keep your statements organized so you can compare month-to-month.

Frequently Asked Questions

Operators typically pay 2-3 months after production. This lag accounts for measuring production, selling the oil/gas, processing the sales, and calculating everyone's share. A January production month might not be paid until March or April.

Many operators now provide statements online through owner portals. Check the stub of your check for login information. If unavailable, call the operator's owner relations department and request statements.

Decimal interest can change if: (1) a new well is drilled in a different-sized unit, (2) the operator corrected a title error, (3) you sold part of your interest, or (4) the unit was reconfigured. If you didn't sell anything and weren't notified of changes, contact the operator.

Yes, keep statements for at least 3-7 years for tax purposes. They're also valuable if you ever sell your minerals—buyers will want to review production history, and having organized statements speeds up the process.