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
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 firstname.lastname@example.org.
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
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!
Deciding to Sell your Mineral Rights or Royalty Interest
People sell their mineral rights or royalty interests for all
kinds of reasons. We're not financial advisors and we don't
know your particular needs, but here are some reasons people have
chosen to sell their mineral rights or royalty interest to
- Manage Risk
and Uncertainty. Your mineral rights or
royalty interest might bring in more money in the long-run if you
kept them instead of selling them to us (that's why we want to buy
them from you!). But that's not a sure thing. The value
of your mineral rights or royalty interest could fall due to things
like low oil and gas prices, weak results that may condemn acreage,
incompetent operators, slow development, or drainage. Some
people prefer the guarantee of cash today.
Turn a Revenue Strem into a Lump-Sum Cash Payment.
If they are producing, your mineral rights or royalty
interest will bring you a stream of revenue, month-by-month.
Some people like that. But others would prefer a lump-sum
cash payment to fund retirement, pay for college, pay off a
mortgage, or just diversify an investment portfolio.
Tax Reasons. We're not tax lawyers or
accountants, but we know that sometimes the time is right to sell
property for tax reasons (e.g., to generate favorable capital gains
tax treatment, to help plan your estate, or just to offset with a
big deduction). Talk to your tax lawyer or accountant-and
then talk to us!
Estate Settlement. Dividing up small mineral
or royalty interests among heirs can create management headaches.
Selling the minerals allows the estate to divide up cash for easy
distribution to heirs.
No More Management Headaches. Managing your
mineral rights or royalty interest takes time and money (e.g.,
tracking checks, overseeing well operators, computing taxes).
Those are management headaches you don't need to worry about if you
How we value Mineral
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.