Why people sell their mineral rights: tax savings

Posted on Friday, August 7th, 2015 at 4:04 pm    

More and more property owners find it appealing to sell their mineral rights rather than lease them. Reduced financial risks, liquidity, and today’s natural gas boom are just among the many reasons why people choose to sell their mineral rights upfront. But apart from these, people are also choosing to sell their mineral rights due to tax savings.

Leases are considered regular income. As such, when you lease your mineral rights, any amount you regularly receive will be subjected to tax. However, when you sell your mineral rights straightaway, you could only be subjected to capital gains tax, which is a one-time tax you pay after realizing a profit from the sale of your rights.

Tax savings are just among the many benefits of selling your mineral rights. To learn more about selling your mineral rights in Texas, speak with our team of mineral rights brokers at The Mineral Auction by calling (512) 698-2802 today.


Weather is a risk to be considered by oil players

Posted on Friday, July 17th, 2015 at 5:53 pm    

Although oil and exploration companies are always subject to the effects of volatile market prices and an empty well, they should also take into consideration another risk that can profoundly affect the profitability of their ventures – weather.

Over the years, global warming has caused many companies to experience earnings fluctuations due to erratic weather. For instance, a summer that is unpredictably cooler may cause a decline in demand for energy for space cooling. Warmer winter months, on the other hand, may decrease energy demand for heating. These variations may cause price instability, which could impact a company’s bottom line.

One of the advantages of selling your mineral rights is that you are freeing yourself up from these risks and are dropping them into the hands of the players who have the capital to survive great losses. To learn more about selling your mineral rights in Texas, speak with our team of brokers at The Mineral Auction by calling (512) 698-2802 today.


Are you really prepared to lease your mineral rights?

Posted on Wednesday, July 8th, 2015 at 6:54 pm    

If you hold on to your mineral rights by leasing them, you are engaging in a business that has its own unique dangers. The question is, are you really prepared to take on the challenges?

Volatile markets, strict federal and state regulations, and the likelihood of experiencing a dry well are just among the myriad of different risks oil and natural gas players face every day. Fortunately, these companies have the resources to tackle each of these risks without much damaging impact. For instance, oil exploration companies have the capital to effortlessly spread the risk of dry wells over large land areas, sometimes even across several states and countries.

By selling your mineral rights upfront, you are sparing yourself from the possible harm of engaging in a venture that won’t pay off. Speak with our team of mineral rights brokers at The Mineral Auction by calling (512) 698-2802 today to learn more about selling your mineral rights today.


Texas nearly the biggest natural gas producer in the world

Posted on Thursday, June 18th, 2015 at 3:54 pm    

Thanks to the state’s current energy boom, Texas has outranked almost all countries in the world when it comes to natural gas production, The Daily Caller reported on May 29.

With 18.1 billion cubic feet of natural gas being produced every day, Texas falls behind only Russia and the entire United States in terms of natural gas production. A graph released by the American Petroleum Institute also showed that the Lone Star State managed to outplay all member-nations of the Organization of the Petroleum Exporting Countries (OPEC), including Saudi Arabia and Algeria.

Texas as the forefront of natural gas production only means that the best time to get the most out of the energy boom is today. If you are planning to sell your mineral rights, our team of mineral rights brokers at The Mineral Auction has the resources and the experience to help you sell your rights at the best possible price. Call us at (512) 698-2802 today.


Enterprise to buy Reliance and Pioneer’s EFS Midstream

Posted on Wednesday, June 10th, 2015 at 2:19 pm    

Houston-based midstream energy services provider Enterprise Products Partners LP has announced it will purchase the Eagle Ford Shale Midstream system (EFS Midstream) of Dallas-based Reliance Industries Ltd. and Mumbai-based Pioneer Natural Resources Co. for $2.15 billion, Bloomberg Business reported on June 1.

According to the agreement, Enterprise will pay the sellers in two installments. $1.15 billion will be paid upon the deal’s closure, while the remaining $1 billion will be paid 12 months after the closing. EFS Midstream is a provider of services in the petroleum industry’s midstream section, which comprises transportation, storage, and marketing of petroleum products. EFS Midstream is currently operating in the oil-rich Eagle Ford region.

The rising number of petroleum industry players who want to expand their business portfolio indicates how promising the energy sector is today and in the near future. If you are a mineral rights owner in Texas, selling your rights upfront would enable you to benefit from this current energy boom. To learn more about selling your mineral rights, consult with our team of mineral rights broker at The Mineral Auction by calling (512) 698-2802 today.


America’s drilling scene slowly recovering from the bust

Posted on Tuesday, May 26th, 2015 at 2:42 pm    

Although the past months have been rough for the oil and gas industry due to plummeting prices of oil, economists say the country’s oil drilling boom is slowly beginning to come back to life, Bloomberg Business reported on May 9.

The CEO of energy data provider Drillinginfo said the country’s rig count may increase to up to 1,300 if the prices of oil rise above $70 per barrel. The Permian Basin in Texas is projected to be the first area to recover from the bust. This is due to the multi-stacked production zones that allow players to drill oil at varying depths through a single well.

Evidence here and there suggests that the country’s drilling boom is not yet over, and selling your mineral rights upfront would enable you to get the most out of it without having to worry about fluctuating oil prices or the threat of a bust. To learn more about selling your mineral rights, consult with our mineral rights broker at The Mineral Auction by calling (512) 698-2802 today.


Selling your mineral rights could mean financial peace of mind

Posted on Tuesday, May 5th, 2015 at 4:28 pm    

In today’s global economy, investing in the oil and natural gas sector poses two great dangers: the danger of fluctuating oil and natural gas prices, and the danger of a low-yielding well. As such, many mineral rights owners choose to sell their properties upfront to shift these risks to the buyers, who are more agile in dealing with the sector’s volatility.

Another thing that compels mineral rights owners to sell their mineral rights is the chance to invest in industries that are relatively stable, such as ecommerce, travel, and building and maintenance. Being paid upfront also gives the mineral rights sellers the benefit of capital, which they may then reinvest in another industry or their own financial security.

By selling your mineral rights, you are setting yourself free from any possible financial risks associated with keeping leases. Sell your mineral rights today with the help of our team of mineral rights brokers at The Mineral Auction and get the financial peace of mind you deserve. Call us at (512) 698-2802 today.


U.S. was the biggest oil producer in the world in 2014

Posted on Monday, April 20th, 2015 at 4:37 pm    

Despite a significant fall in crude oil prices in the second half of 2014, the United States was still the world’s undisputed biggest producer of oil and natural gas hydrocarbon last year, the Climate Spectator revealed on April 9.

The report said the boost in production was due to the country’s aggressive exploration and drilling of shale gas and tight oil formation, specifically in the states of North Dakota and Texas. The country was able to boost its petroleum production by 3 quadrillion British thermal unit (Btu), or 1.6 million barrels per day, and its natural gas production by 5 quadrillion Btu, or 13.9 billion cubic feet per day.

On the other hand, petroleum and natural gas production in two other competing countries, Russia and Saudi Arabia, has remained unchanged for several years.

The country’s impressive oil and natural gas production further testifies that you can get the most out of your mineral rights by selling it today. To learn more about getting the highest possible value for your mineral rights sale, speak with our team of mineral rights brokers at The Mineral Auction by calling (512) 698-2802 today.


Those who lease mineral rights threatened by fluctuating prices

Posted on Monday, April 13th, 2015 at 3:37 pm    

Some mineral rights owners are tempted to lease their mineral rights due to the promise of long-term returns. However, the fast-changing landscape of the oil and natural gas sector may cause the value of your mineral rights to dwindle. Something that may risk the profitability of your mineral rights could be the fluctuating price.

The value of mineral rights is subjected to the fluctuating prices of oil and gas on the market. Oil prices may vary depending on several factors, such as local and global changes in the supply and demand, market sentiment, and even politics and public policies. Although the fall in oil prices primarily benefits consumers, it may have a negative effect on oil explorers and drillers who spent a lot of resources and are in considerable debt for contributing to the oil and gas boom. Oil companies in debt are in turn reluctant to expand their oil and natural gas portfolio, which greatly affects those who own mineral rights.

Those who sell their mineral rights upfront to interested oil explorers have a decreased chance of being affected by the price changes and are therefore more likely to benefit than those who chose to lease their mineral rights.

By selling your mineral rights, you are sure to secure the best of what your property can offer today. Our brokers at The Mineral Auction can help you sell your mineral rights at the highest possible value. Call us at (512) 698-2802 to get help today.


The “volume risk” associated with leasing your mineral rights

Posted on Monday, March 30th, 2015 at 4:01 pm    

With the country’s oil and natural gas boom, many mineral rights owners believe that leasing their rights would allow them to reap the most over the long term. However, leasing your mineral rights for royalties has its share of risks that could even be greater compared to the risks associated with selling your rights all together.

One known risk of leasing your mineral rights is the “volume risk.” While it is true that some wells live a long time, others might not. Over just a short time, those working on your land might find that the lease is not worth the cost of production. At this point, companies will often abandon the wells and your revenue will cease. However, if you choose to sell upfront, then you retain the larger initial payout and the risk of a low-yielding well shifts to the buyer.

To learn more about volume risks with leasing versus selling your mineral rights in Texas, our team of expert mineral rights brokers at The Mineral Auction can answer all of your queries. Contact us at (512) 698-2802 today to learn how to get the most out of your mineral rights.

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