BY: DAVID SMITH
Business Development Officer, Argent Mineral Management
If you are a mineral owner, you have probably been advised at some point to never sell your minerals. Whether this advice was from a relative, an attorney, a land professional or someone else, it was long considered to be the standard. There is little to no cost or risk in keeping your minerals. In fact, at Argent, we routinely advise retaining ownership of these generational assets; however, there can be scenarios that make selling the right decision.
In our current pricing environment, oil and natural gas commodity prices are the highest they have been in quite some time, leading mineral buyers to send unsolicited offers to purchase mineral rights from owners across the country. Truthfully, some of the offers are garbage, but others are significant and bear consideration.
So, this begs the question, “Why should I sell my minerals?” The simple answer is, “it depends.”
Every person or family is different, but sometimes situations arise that make a decision to sell advantageous. Some examples include paying off debt, pursuing other investment opportunities, simplifying your estate planning efforts or putting your children or grandchildren through college. You might have inherited the mineral rights and have no sentimental ties to them or simply oppose the oil and gas industry all together and wish to divest your mineral assets. Perhaps you want to take the certainty of a lump sum payment instead of chancing the uncertainty of future production or decide only to sell part of your mineral rights to hedge your risk. Finally, there could be a tax advantage for selling your mineral rights.
On the other hand, retaining ownership of your mineral rights can potentially benefit you, or can be passed down and enjoyed by multiple generations of family members for years to come. Whatever the need or motivation, this is always a personal choice that deserves consideration with the assistance of an experienced advisor that can help you make an informed decision.
At Argent Mineral Management, our team can review these offers to help you determine if selling some or all of your minerals is the best decision. We can also help negotiate with mineral buying companies to ensure that you are receiving a fair offer for your assets. Please reach out if this is something you are considering and would like to discuss further.
If you have questions or concerns about selling your minerals, Argent’s mineral management team is here to assist you. Give us a call at (800) 375-4646 to learn more.