How We Evaluate Mineral Rights

Mineral value is not guesswork. It’s based on geology, economics, and risk. Below is a transparent overview of how we evaluate mineral and royalty interests.

The Big Picture

Every mineral interest is unique. Two tracts next to each other can have very different values depending on development status, lease terms, and ownership structure.

Our goal is to make fair offers based on real-world economics—not pressure, hype, or short-term price spikes.

1. Location & Basin

Location is the foundation of value. Producing basins and active development areas generally carry more value than speculative acreage.

State, county, and basin
Nearby drilling activity
Operator presence

2. Current Production

Producing minerals and royalties are easier to value because they generate real cash flow.

Oil, gas, or both
Decline curves
Revenue history

3. Development Potential

Non-producing minerals may still have value if future drilling is likely.

Permits and spacing
Undeveloped locations
Operator plans

4. Commodity Prices

Oil and gas prices affect value, but long-term expectations matter more than short-term swings.

Oil vs. gas weighting
Price volatility
Long-term outlook

5. Ownership & Title

Clear title supports stronger offers. Complex ownership can increase risk and reduce value.

Net mineral acres
Heirs and estates
Title clarity

6. Lease Terms

Lease provisions directly affect future income and flexibility.

Royalty rate
Depth & Pugh clauses
Operator deductions

Risk Matters

Buying minerals involves risk—commodity prices change, wells decline, and development plans can shift.

Any offer reflects both current value and future uncertainty. Higher certainty generally supports higher pricing.

Want to Understand What Your Minerals May Be Worth?

There is no obligation to sell. We’re happy to review your situation and explain how these factors apply to your minerals.

Request a Review