Mineral Royalties Buyers in West Virginia
ADVANTAGES TO SELLING
Benefits to Selling
Deciding to sell minerals and royalties is a personal decision and each individual’s situation is different. Here are a few reasons you may want to consider a full or partial sale of your mineral or royalty interest.
Guaranteed Cash – There are no guarantees in the oil and gas business. Life is full of unexpected, and expensive, circumstances. We offer you an opportunity to receive guaranteed cash from your mineral interest today. You will receive an immediate large lump sum cash payment rather than several smaller payments over many years. Many factors can affect the uncertainty of those future payments including falling oil & gas prices, mechanical issues with a well bore and pipeline shut-ins. Having the cash now will allow you to take “all those eggs in one basket” and invest them across several asset classes, pay down mortgage or credit card debt, etc.
Favorable Tax Savings – Oil and gas lease bonus payments and royalties are taxed as ordinary income at up to 39.6%. This can result in a hefty tax bill. However, if you have owned your mineral interest for more than one year, the payment you receive from selling your minerals may be taxed as a long-term capital gain at around 15%. We encourage mineral owners to speak with a tax professional for tax advice.
Estate Management- Distributing cash assets to heirs is a much easier and simpler process than fractionalizing a mineral estate. Selling your minerals can give you a lump sum to distribute to your heirs, and also save them the tax burden of a mineral estate.
Depreciating Assets- Natural gas wells are a depreciating asset. As the reservoir loses pressure, the royalties paid each month become smaller and smaller. Selling your mineral interest is a great way to liquidate a depreciating asset, and invest in something that will appreciate so that future generations may reap the benefits of your investment.
Delays in Development – As a mineral owner, you are not in control of the development of, or the profit from, your mineral interest. An oil and gas lease can give drilling companies up to 10 years to drill on your land. Property located away from existing pipeline or on top of coal mines, etc. will experience significant delays in production, as they will be the last to be drilled in the Appalachian Basin. For this reason, a mineral owner may prefer to capitalize on a portion or all of their minerals and royalty today, rather than waiting years for development to take place.
Partnering Together – Appalachian Mineral Partners is dedicated to understanding the needs of each individual landowner, and finding solution that benefits you the most. Whether that means selling all, or a portion of, your mineral interest. We will work with you do what is best for your financial future.
Marginal or Non-Economic Wells – Low-output wells can occur despite close proximity to high-output wells. This means that even if your neighbor received significant royalty payments on a well, there is no guarantee that you will receive similar royalties. Some “Dry Holes” may not even produce at all. Selling a portion of your mineral interest can hedge against the risk of poor producing wells.
Falling Natural Gas Prices – Oil and gas is a “Boom and Bust” industry. What is profitable today may be costly tomorrow. Unstable natural gas prices have already caused drilling companies to cut their spending in the Appalachian Basin by more than 40% in 2015. Other shale plays across the country have experienced the same decline in production. Selling all or a portion of your mineral interest is a great way to protect yourself against an uncertain future.
Personal Reasons – Each and every mineral owner has a different situation and comes from a different background. Often times, receiving money in a lump sum today is the smarter choice as opposed to in increments over time. It can take up to 15 years of collecting royalties to make back what we can offer you immediately through selling your mineral interest.
AREAS OF INTEREST
Counties: Marshall, Ohio, Brooke, Wetzel, Tyler, Doddridge, Ritchie, Monongalia, Marion, Harrison.
Counties: Beaver, Butler, Greene, Lawrence, Mercer, Venango, Washington, Susquehanna, Bradford and Lycoming.
Counties: Belmont, Carroll, Guernsey, Harrison, Monroe, Jefferson and Noble
- How do you calculate my offer price?
- How long does the evaluation process take?
- How does selling a portion of my minerals work?
- If my minerals are already held by production (HBP) from an existing oil or gas well, can I still sell my minerals?
- How long will it take to get my cash payment from the signing of a Purchase Agreement?
- I’ve decided to sell all, or a portion of my minerals, now what?
- Is there anything I can do to speed up the process?
- Can I sell my mineral interest if I have a mortgage on my property?
- Will I have to cover any costs?
- Does Appalachian Mineral Partners have Affiliated Entities?
- Is Appalachian Mineral Partners an End-Buyer?
How do you calculate my offer price?
There are many factors that go into a purchase offer. These include: location of your mineral property, terms of your lease, whether or not your land is permitted or unitized, production data from surrounding wells, industry trends, etc. We make each offer on a parcel-by-parcel basis.
How long does the evaluation process take?
Evaluations can take as little as a few hours, and as long as a few days depending on how much property is being evaluated. We will always be straightforward with you on how long to expect to wait before we can make you an offer.
How does selling a portion of my minerals work?
Selling a portion of your minerals gives you an immediate cash payout, while still maintaining the ability to receive royalty payments if your minerals are produced. The percentage of your minerals that you maintain is completely your decision. It depends on if you would prefer to have a higher guaranteed payout, or take the risk on royalty payments.
If my minerals are already held by production (HBP) from an existing oil or gas well, can I still sell my minerals?
Yes. We can offer you a lump sum in exchange for HBP mineral rights. If you have a shallow well, we can even negotiate for you to keep the shallow well royalties while selling us the undeveloped deep rights.
How long will it take to get my cash payment from the signing of a Purchase Agreement?
Our due diligence process generally takes between 60 and 120 days to complete title and prepare all the necessary paperwork for closing.
I’ve decided to sell all, or a portion of my minerals, now what?
We will agree on a purchase price per acre, and begin our due diligence process on your minerals. This includes conducting a title search at the County Recorder’s office. Once we confirm your net mineral acreage, we will execute a mineral deed, and write you a check the same day for the total consideration.
Is there anything I can do to speed up the process?
The more information you provide us regarding your parcel, the faster we can complete our due diligence. This includes: Original copies of your lease, Order for Payment, Title Searches, Source Documentation, Royalty Pay Stubs, and any other pertinent information.
Can I sell my mineral interest if I have a mortgage on my property?
In most circumstances, the answer is yes. However, each situation is different. Give us a call for specific details on your property.
Will I have to cover any costs?
We cover every cost from the beginning to the completion of the acquisition.
Does Appalachian Mineral Partners have Affiliated Entities?
Yes, Appalachian Mineral Partners has purchased mineral interest under AMP Fund I, LLC, AMP Fund II, LP, AMP Acquisition, LLC and is currently buying under it’s third fund, AMP Fund III, LP.
Is Appalachian Mineral Partners an End-Buyer?
Yes, Appalachian Mineral Partners is an end-buyer. We do not broker deals but purchase directly from our Fund. Please see our SEC Filing for AMP Fund III, LP, our latest round of funding.