Reduce Risk

Oil and gas is a boom and bust industry and comes with commodity price risk and many other risks. By selling your minerals you could receive cash now as opposed to potentially receiving declining monthly cash payments or run the risk of your minerals never being drilled and receiving no lease or royalty bonus payments. Taking advantage of the historically high prices now can increase your certainty in your future financial planning.

Eliminate the uncertainty of future royalty streams. You won't be at the mercy of market changes or the decisions of the production company. The value of your royalties are often out of your control, so it can be difficult to plan for your financial future.

Need For Immediate Cash: To Pay Bills Some owners choose to sell their rights in order to receive a lump-sum payment now to pay off bills, high interest credit cards or other debt rather than waiting years to collect lease bonus payments or monthly royalties.

With the fluctuating market, it is difficult to determine the uncertainty of what your minerals will be worth in the future. While mineral and royalty interests may have value now, they are far from a sure thing.  The future is far from certain. Don’t take on the risk of ownership. Oil and gas interests are depleting assets, meaning that accepting a lump sum payment now will result in higher earnings than if you wait.