Mineral Rights or Royalty for Sale?

Caddo Minerals is one of the country's premier, most trusted buyers of Mineral Rights and Royalties.  We buy Leased, Un-Leased, Producing and Non-Producing Mineral Rights, Royalties, Overriding Interests and Working Interests.  Caddo is the fastest, easiest and most efficient way to Liquidate your energy ownership.  We pay Top Dollar for your Mineral Rights and Royalties and we close quickly.  Ask us for a quick, no-hassle evaluation of your Mineral Rights, Royalties or Overriding Interest today!

Our Process

Contact us for a FREE consultation and evaluation of your Mineral Rights and/or Royalty ownership.  Call us at - 877-620-7717.  You can also fill out the form to your right or send us an email at info@caddominerals.com.

Once we recieve your email or phone call, we'll gather some more information from you regarding your property.  Once we have enough information, we'll give you a quote.  In addtion to our quote, we'll give you a detailed analysis on how we valued your property and we'll help you work through the decision to sell or not to sell your minerals or royalty.

Accept our offer and we'll close within a few weeks!  We'll email or overnight you the agreements, and we'll send you a cashiers check or wire money directly into your bank account.  We NEVER use bank drafts!

Reasons to Sell your Mineral Rights or Royalty

Guaranteed Cash Today. Selling your mineral rights or royalty is a simple exchange of cash today for un-certain future cash flow.  If you are own producing royalties, Caddo will buy your royalties for many years of potential cash flow.  Let us worry about the taxes, keeping the operator honest and the risks of future production and commodity prices.  If your property is not producing, we'll give you cash for your mineral rights.  With non-producing minerals there is substantial risk that the property will never produce any royalty income.  Caddo is willing to take on this risk.  You might want the guarantee of cash today.  

Investment Diversification.  Selling your minerals or royalty creates liquidity. Retaining all of your mineral interest creates a risky, less diversified invstment portfolio. 

Lump Sum Cash Payment.  Put your lump sum cash payment to work.  Our clients have used this money to fund retirement, pay for their children's college education or to pay off their mortgage or other high interest loans  Lump sum payments are often more impactful and better used than small monthly royalty checks which are easily frittered away.

No More Management.Royalty checks can create work.  Keeping up with your checks can be an organizational disaster. Well operators are known to take advantage of royalty owners and royalties can complicate taxes.

Tax Advantages.  Selling minerals can generate favorable capital gains tax treatment, which in some cases can reduce income taxes.  

Estate Settlement. Dividing up small mineral interests among heirs can create management headaches for the heirs. Selling the minerals allows the Estate to divide up cash, which is much more easier for the heirs. 

The Decision to Sell Mineral Rights

How do I know when I should sell my Mineral Rights?   This is a question we get all the time, and it is a tough one to answer.  One of the most common mistakes is taking the position that one should never sell mineral rights or royalty ownership.  Mineral Rights, Royalties and any other kind of real estate should be looked at strictly as an investment.  If your investment portfolio is "overweight" towards real estate (mineral rights, royalties, etc...), then you should consider diversifying and selling all or part of your minerals.

How to decide.There are many ways to come to a decision on whether or not to sell your mineral rights.  However, when we talk to our clients, we discuss their mineral ownership decisions by asking two simple questions.  

1 - If your mineral rights never produced income, or produced a dissapointing amount of income, would that take away from your quality of life.  In other words, are you relying, in any way, on income from your mineral rights?   

2 - Are all your eggs in one basket?  Meaning, is your mineral or royalty ownership a signifcant piece of you and your family's wealth?  

If you answer "yes" to either of these questions, then we would advise you to strongly consider selling all or a portion of your mineral rights so you can diversify.

Caddo is always willing to give you a free consultation on your mineral ownership.  Give us a call or send us an email and we'll get back with you promptly.  We'll give you our honest opinion, and we'll tell you the truth.  We will NEVER pressure you to sell, and we'll do our best to answer your questions.

How we value Mineral Rights  

How does Caddo come up with a price for my Mineral Rights or Royalty?    It really depends on your property.  There are 3 basic scenarios with three very different valuation processes.  

Producing Property - If your property is producing, and you're receiving royalty checks from an operator, then it is pretty simple to value your mineral rights.  In this case, we do  some simple research to figure out what stage of production your property is in.  Depending on where your property is (formation and/or play), there is a standard decline rate which all wells experience.  This means that your second check will be less than your first, and your third will be less than your second.  Typically wells experience a rapid decline rate within the first year.  After the first year, the decline rate slowly levels off.  Decline rates are unique to different plays (like the Haynesville or Eagle Ford Shales), but are similiar within the plays, which means that your decline rate is going to be almost identical to your neighbor's.  Once we find out where your property is on the decline curve, we will be able to come up with an offer based on a multiple of your current cash flow.  This could be anywhere between 20 and 75 times your current months royalty check.

Leased but NOT Producing - If your mineral rights are leased, but not currently producing, it is a bit more difficult to value, but still fairly straightforward.  In this case, an Oil and Gas company has leased the rights to produce your mineral rights, but has yet to begin production.  There are a variety of subset situations within this field (rig on location, drilling has begun, etc...), but the fact is that the property still has some un-known factors.  At this point, we look at the known factors including the lessee (company leasing your minerals), neighboring production, and other factors.  We will come up with a value based on how certain we are that the property will ultimately produce, and how much we could expect it to produce if it goes into production.

NOT Leased - Purchasing a property that is not yet leased can be a really risky endeavor for us, and the valuation is totally property specific.  However, selling your un-leased property can still yield a nice return for you and make a lot of sense.  We are a well diversified investor, which means we can take a risk here and there on unleased properties.  While an un-leased property may be risky for us, it is extraordinarily risky for you when you consider opportunity costs.  If you have the option to sell your un-leased mineral rights, you should really consider taking it.  This is the most un-certain of the three situations, so don't let the opportunity pass you by when we come knocking at your door.