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.


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.


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.


Texas oil and natural gas industry pays record taxes, royalties

Posted on Monday, March 16th, 2015 at 1:57 pm    

The skyrocketing energy production in Texas allowed the state’s oil and natural gas industry to pay record-high amounts in taxes and royalties last year, a report by the Victoria Advocate stated on February 24.

Data released by the Texas Oil and Gas Association showed that the state’s oil and gas industry has contributed $15.7 billion to the state in terms of royalty payments and taxes. Association president Todd Staples said these payments are being used to fund schools, children’s health insurance, and public services, among many other important community projects.

The report further added that the state’s vibrant energy sector directly employs 418,000 Texans, while indirectly providing jobs for another 1.8 million individuals across the state.

Indeed, the continuous growth of Texas’ oil and gas industry benefits not only its direct stakeholders, but also the community in which it thrives. If you want to know more about how to benefit from this boom by selling your mineral rights, the team at The Mineral Auction can help you. Call us at (512) 698-2802 to learn more about selling your mineral rights for the highest value possible.


South Texas counties want to benefit from mineral rights

Posted on Tuesday, January 13th, 2015 at 5:34 pm    

Counties in the oil-rich Eagle Ford Shale in South Texas wish to lease rights of way and mineral rights underneath county roads to repair those roads damaged by heavy-duty carriers of oil field equipment, The Texas Tribune reported.

However, a 1960 ruling by an attorney general regarding the state’s sovereignty over roads prevents counties from negotiating for and receiving revenue from leases. DeWitt County Judge Daryl Fowler and representatives from other counties plan to seek legislation that would allow counties to negotiate or at least receive some revenue from mineral rights leases and royalties. Fowler said it is right for counties to receive a part of the revenue from mineral rights beneath roads, as they are the ones who typically maintain and repair roads.

The 54-year-old opinion indicates that leases and royalties from mineral rights found beneath roads should go to the state general fund.

The revenue from mineral rights can also be economically favorable to the individual families who own them. If you want to reap the full benefits of the mineral rights you own in Texas, consider selling them with the help of our team of mineral rights brokers at The Mineral Auction. Call us today at (512) 698-2802.


Uranium, a valuable mineral in Texas

Posted on Thursday, December 18th, 2014 at 6:40 pm    

Having been discovered accidentally in 1954 during a survey to look for petroleum deposits, uranium is among the most valuable minerals productively being recovered across Texas, specifically within uranium-rich areas of Coastal Plain and Trans-Pecos.

During the ’80s, uranium was the second in value among all the metallic elements mined in Texas. Apart from its military usage, uranium is utilized to fuel nuclear power plants across the country. In fact, 9% of the uranium needed by the nuclear power plants across the U.S. were extracted in the country in 2011.Other civilian usages of uranium include production of stains and dyes for wood and leather industries, and a component in lamp filaments for stage bulb lighting.

Uranium is indeed a valuable metallic mineral. By selling your uranium mineral rights, you are providing you and your family the opportunity to be financially stable and independent. To discuss about your plans of selling your mineral rights in Texas, consult with our team of brokers at The Mineral Auction by calling (512) 698-2802 today.


American Energy poised to buy more mineral rights

Posted on Thursday, December 4th, 2014 at 7:42 pm    

American Energy Partners announced on Monday that amid its plans of entering into pipeline partnerships, acquiring oil-producing assets, and possible initial public offerings, the company is still allocating millions of dollars’ worth of funding to purchase mineral rights in some of the country’s most prolific oil-producing regions, Fuelfix reported on Tuesday, December 2.

The company, which is owned by former Chesapeake CEO Aubrey McClendon, said it will set aside $500 million from equity commitments to buy 28,000 net mineral acres and secure 29,000 acres in royalty interests. Among the formations American Energy Partners plans to invest in is the Permian Basin, one of the country’s richest oilfields located in West Texas.

Many players are still eager to secure as many mineral rights as they can despite factors that threaten the overall health of the energy sector, such as pressure over fracking bans and dwindling oil prices. This enthusiasm proves that selling your mineral rights today would help you make the most out of this energy boom. 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.


Selling mineral rights means convenience

Posted on Monday, November 24th, 2014 at 5:03 pm    

Some mineral rights owners choose to sell their mineral rights rather than lease it for the purpose of convenience. Keeping up with all the paperwork, audits, and monitoring required for leasing any producing property, such as oil and gas wells, can be very demanding at times. As such, it may be more advantageous for some to leave this responsibility to those who have the experience and resources to manage the upkeep.

Owning mineral rights also means more difficulty meeting the tax requirements of a mineral rights lease. Because leasing mineral rights means receiving royalty payments on a regular basis while still owning the property, it may require more complex accounting structure as compared to selling the mineral property right away.

There are a myriad of other good reasons why you should sell your mineral rights. If you want to know more about the benefits of selling your mineral rights, and if you have plans to sell your rights in Texas, our team of brokers at The Mineral Auction would be willing to help you. Call us at (512) 698-2802 to learn more about how we can help you.

Recent Mineral Rights Posts

Jul
22
Understanding How Mineral Rights Work in Texas

Mineral rights are a complex and important aspect of property ownership in Texas. They refer to the ... Read More

Aug
31
Ownership of Mineral Rights: How do I know who owns the rights? How do I go about selling them?

If you are a property owner in an area that has precious resources like oil, gas, or minerals, you m... Read More

Jan
09
Who might buy your mineral rights

Selling mineral rights is much more different than selling most items or property. It goes further t... Read More

Ready to get started? Call us today - (512) 698-2802