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.


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.

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