CASH OPPORTUNITY

When you sell your mineral or royalty interest, you are exchanging your ownership in the property for immediate cash at closing, typically a FedWire. A lump sum payment can be used however you want, including investing as you see fit. Since most oil and gas properties have declining production over time, we hope that you will put the cash in a safe investment that will appreciate in time, whether it be the stock market, real estate, or another opportunity.

ESTATE MANAGEMENT

Frequently, sellers are motivated to organize their estate prior to death. In this case, most realize royalty management for their heirs is not always a blessing. In many cases, the management of extremely fractional interests can outweigh  their financial benefit. In effect, being economically neutral or even a liability. In addition, the preparation of transfer documents and the marketing of the interest can be expensive. Any such costs leave less in the estate for the heirs and increases the burden on the executor.

Royalty interests are usually a very small fractional percentage of the total ownership of the well or lease. Continuing to divide interests that are already small, multiplies the paperwork and accounting costs to heirs and assigns.

MAXIMIZING INCOME

Keeping track of royalty interests and income can be burdensome, even for small owners.  We remove that headache. Most tax consultants that are not in the oil and gas business are not aware of the rules regarding accounting for such income, and may not be calculating your tax burden correctly, or may not be taking advantage of such things as cost or percentage depletion.