If you own land with mineral rights and you signed a lease with an oil company that drilled a well on your land, then you received a royalty interest entitling you to a share of the revenues from the well and should be receiving royalty checks. Or perhaps you inherited royalty interests from your parents. If you are not sure whether their are oil and gas interests in the family, look for the following documents in your family files:

  • Mineral and royalty conveyances – title documents for mineral acreage that are recorded at the county courthouse.
  • Oil and gas leases – contracts between the oil companies and mineral interest owners.
  • Division orders – documents issued by oil companies to royalty owners specifying their oil and gas royalty interests to be paid out on royalty checks.
  • Oil and gas royalty check stubs – the detailed enclosures that come with oil and gas royalty checks.

“Never sell your minerals and royalties” is oft-told conventional wisdom that has merit for the following reasons:

  • Regulatory spacing rules may allow for more wells on your land.
  • There may be additional petroleum reserves under ground at different depths that have not already been tapped.
  • New technology and know-how in drilling may make it possible to tap additional reserves underground that were previously stranded.
  • Oil and gas prices may go up in the future, increasing royalty payments and possibly spurring more drilling. 

    But many people choose to sell their minerals and royalties anyway because:

  • Their mineral acreage has little or no potential for additional production because regulatory spacing rules won’t allow new wells to be drilled and there are no untapped reserves at depths beyond the current depth of production of the existing wells.
  • Oil and gas reserves are finite and every well is destined to run dry and stop producing some day.
    While oil and gas prices can go up they can also go down, and some prefer to escape the volatility in income that pricing variability creates.
  • They don’t like all the paperwork that is required and paying the related income and property taxes each year.
  • They choose to clean up their estates so their heirs won’t have to deal with the complicated paperwork, especially if the income will be insignificant after it’s split up between siblings.
  • They prefer to reinvest the proceeds into other investments like a home, stocks and bonds, or their children’s college education.
  • They want to use the proceeds from their royalty interests to pay off debts, such as high-interest credit card balances, medical bills, a mortgage, or a car loan.Deciding whether or not to sell oil and gas royalties can be a big decision, and every royalty owner should carefully consider the pros and cons in arriving at the best answer for them.
  • We just need copies of your three most recent royalty check stubs. Your royalty checks should include lines of detail breaking out how much oil and gas was produced per lease or well, the prices received for the oil and gas, the taxes deducted and the net amount paid to you. We need copies of all these details to verify and value what you own. You can send these copies to us by:

  • Mail – 110 San Antonio Street #523, Austin, Texas 78701
  • Email – kking@almc.biz
  • Fax – 1-866-239-6616
  • Text – 1-800-572-4967
  • We perform an in-depth assessment of each royalty interest in order to extend the most generous offer possible. This assessment involves reviewing the production history of each well and forecasting future production using petroleum engineering best practices. We combine these forecasted production volumes with aggressive market expectations for future oil and gas prices in projecting royalty payments over the remaining productive life for each well. The end result of this process is a fair-market value in the form of a lump-sum payment for your future royalty income. We complete this process at no obligation to you, and if you choose not to sell we hope that you will have benefitted by learning more about your royalty interests.

    Our acquisition representatives are standing by now to begin our assessment of your royalty holdings. Once we hear from you, our goal is to extend you an offer within 24 hours. If you accept our offer, we will complete our pre-closing due diligence and issue payment right away. Depending on your situation and your royalty holdings, we can expedite this process for payment within a matter of a few days or even a few hours. If time is of the essence, please be sure to notify your acquisition representative upfront so that we may expedite your transaction accordingly.

    Yes. Oil and gas reserves are finite, and every oil and gas well is destined to be plugged and abandoned. So, although royalty income can increase in the short term due to rises in oil and gas prices or production enhancement projects, you can be certain that your royalty checks will decline over the long run and will one day stop coming.

    Royalties are worth more to our investors than they are to most individuals and institutions. This is because our investors are able to significantly reduce the uncertainty of royalty income.They do this in two ways. First, they do not have all their eggs in one basket. That is to say, they own interests in thousands of wells. So, the risk that one well will unexpectedly go down is offset by the thousands of other wells they own. Second, our investors have the capability to hedge oil and gas prices.  In effect, they lock in today’s oil and gas prices by assuring that the shortfalls in royalty income that would result from falling oil and gas prices would be made up in gains on their futures contract investments. You may have heard of Southwest Airlines’ use of this same financial tool to protect itself from increases in jet fuel prices.

    The bottom line—our investors are able to limit the risks of holding minerals and royalties in ways that most of us can’t. Lower risk means higher value…and a higher lump-sum payout to you.