Why would I sell?

We recognize it's a personal decision. There are many reasons to consider it.

There are several reasons why someone might choose to sell their mineral rights:

  1. Immediate Financial Need: If you require a lump sum of money for an urgent financial need, selling your mineral rights can provide you with a significant cash infusion.
  2. Risk Mitigation: Owning mineral rights can be a speculative investment. Prices for minerals like oil and gas can fluctuate, and there is no guarantee of finding valuable resources on your land. Selling the rights transfers the risk to the buyer.
  3. Estate Planning: Some individuals or families may choose to sell mineral rights as part of their estate planning. This can help simplify the distribution of assets to heirs and reduce the complexity of the estate.
  4. Lack of Interest or Expertise: Managing mineral rights can be complex and require specialized knowledge. If you’re not interested in the industry or don’t have the expertise to manage these rights effectively, selling them can be a practical choice.
  5. Tax Benefits: Depending on your financial situation and the tax laws in your jurisdiction, selling mineral rights may offer tax advantages or allow you to offset capital gains.
  6. Diversification: If your investment portfolio is heavily concentrated in mineral rights, selling them can help diversify your holdings, reducing your exposure to the commodities market.
  7. Development Costs: If you own mineral rights but lack the financial resources to explore and develop them, selling the rights to a company with the resources to do so can be a sensible decision.
  8. Legal and Regulatory Compliance: Compliance with regulations related to mineral rights can be demanding. Selling the rights can relieve you of the legal obligations associated with ownership.
  9. Market Conditions (Price of oil & gas, operator decisions, etc.): The market conditions for mineral rights can influence your decision. If there's a high demand for mineral rights in your area, you might get a better price for them.
  10. Future Uncertainty: Future changes in regulations, environmental concerns, or technological advancements can affect the value of mineral rights. Selling now might be seen as a way to lock in a favorable price.

It's important to carefully consider your specific circumstances and consult with legal, financial, and real estate professionals before making a decision to sell your mineral rights. Additionally, seek advice on how selling may impact your overall financial and estate planning goals.

Expedition is happy to make recommendations to point you in the right direction.

What about the future royalties I might be losing?

Production typically declines over time. Even if there are expectations of future royalties, there is no guarantee that the mineral resources will continue to be economically viable. The rate of decline in production can be unpredictable, and it's possible that future royalties may not match initial expectations. Selling the rights ensures a fixed payout regardless of future production.

Market Timing: Timing can be crucial in the mineral rights market. Owners may choose to sell when market conditions are favorable, such as when mineral prices are high or when there is strong demand for rights in their area. This can lead to a more attractive sale price, making it a compelling choice for those concerned about future royalties.


Can I sell a portion - not all – to preserve legacy?

Yes, you can sell a portion of your mineral rights while retaining some ownership to preserve a legacy or maintain an interest in the mineral resources beneath your land. This approach is often referred to as a "partial mineral rights sale" or a "fractional interest sale." It allows you to monetize a portion of your mineral rights while retaining control or benefitting from a percentage of the royalties generated from the extracted minerals.

Here's how it typically works:

  1. Determine the Fraction to Sell: You can decide what percentage of your mineral rights you want to sell. Common fractions include 50%, 25%, or any other percentage you negotiate with a potential buyer.
  2. Negotiate Terms: Work with potential buyers to negotiate the terms of the sale, including the sale price for the percentage you're selling and any conditions or restrictions on the retained rights.
  3. Legal Agreements: Draft a legally binding agreement that outlines the details of the partial sale. This agreement should clearly specify the percentage sold, the sale price, the rights and obligations of both parties, and any provisions for future development and royalties.
  4. Record the Transaction: Depending on local regulations, you may need to record the partial sale of mineral rights with the appropriate governmental or land records office.
  5. Maintain Ownership and Royalties: After the partial sale, you will still retain ownership of the portion you did not sell. You may continue to receive royalties from the retained mineral rights based on the terms of the agreement. The buyer of the partial rights will have rights to the specified percentage of royalties and may also be involved in decisions related to exploration and development.

Preserving a legacy through a partial mineral rights sale can be a practical way to generate income or liquidity while ensuring that future generations or heirs have some connection to the land and its resources. It allows you to strike a balance between monetizing assets and retaining an interest in the mineral wealth of your property. However, it's crucial to consult with legal and financial professionals experienced in mineral rights transactions to navigate the complex legal, financial, and contractual aspects of such sales effectively.

Won’t a sale produce an immediate tax burden for me?

Not necessarily. Each seller needs to talk to his or her own tax advisor, of course, to understand tax impact and the difference between ordinary income and capital gains. It’s possible that you will have tax advantages by receiving a lump sum capital gain, rather than royalty income.

We are happy to provide you a list of CPAs in Big Spring or Midland who can advise on this “lump sum versus royalty income” issue and how it might apply to your individual situation.

How do you come up with a value for my mineral rights?

Unfortunately, and despite what you may hear elsewhere, there is no simple or do-it-yourself formula we can provide on our website for you to plug in numbers and get "the value."

Key factors we take into account when evaluating a property include location of the asset, drilling activity in the surrounding area, the operator who owns the lease on the property, and estimated timing of any future production.

If you are interested in hearing more details, our knowledgeable team would be pleased to walk you through our process, step by step.

Is there an equivalent to Zillow for mineral rights — where I can judge the value of my property or compare it to others?

Evaluating the value of mineral rights requires specialized knowledge. Our proprietary process enables us to project future production from a lease, serving as the basis for determining the present-day value. The accuracy of our modeling and the excellence of our data sources allow us to provide competitive prices for minerals. Nevertheless, it's important to recognize that, like any investment, there are inherent uncertainties and risks involved in predicting the future.

Wouldn’t I be better off not selling, for the sake of current and future royalties?

If you’re currently receiving royalties, be aware that production typically declines, and your mineral resources will naturally diminish over time. So, you need to project the value of your mineral resources into the future. We can help you do that and help you compare that value to the invested value of a current payout.

I get offers to buy my minerals constantly. Why should I work with Expedition rather than someone else?

Expedition offers you swift evaluation and promptly funds your assets at the agreed-upon price.

We are committed to trustworthiness and transparency in all our dealings, ensuring you have a reliable partner throughout the process.

I own as part of a group, with other members of my family. How does that impact your offer to me?

It’s not an uncommon situation. Expedition can accommodate your desire to work together with your group of sellers, or independently.

How much experience does Expedition have in buying mineral rights?

Members of our team have bought and sold over 50,000 net mineral acres (NMA). We have seen and handled all the complexities that may be involved in mineral rights and royalty interest deals, including successfully addressing issues involving overriding royalty interests (ORRI) and non-participating royalty interest (NPRI). In the Permian Basin alone, we have handled over 800 individual transactions with landowners, including your neighbors.

50000 net mineral acres bought and sold by Expedition, 800 individual transactions in the permian basin only

Is your business confined to Howard and Martin counties?

No. We are primarily focused on Howard and Martin counties in the Permian Basin, but we are also involved in transactions throughout the United States. You may be a landowner with properties in multiple states. We have the financial strength and the experience to evaluate your properties, and we will be interested in speaking with you about any of your properties.

How long does your process take, from offer through closing?

Once we submit our offer, with supporting facts, in an offer letter, the next step is to answer any questions you have. The offer letter contains the full terms of a sale – purchase price, effective date, closing date, and Expedition’s responsibilities.

After that, if the offer is accepted, we will create the necessary documents to close the deal, and we will subsequently handle any closing costs, recording fees, etc.

Another advantage of working with Expedition is that we have already completed title verification – a mineral rights title search - to confirm your ownership. This allows us to make an accurate offer from day 1 and be prepared to close as soon as you are ready to move forward.

Closing is the last step! Once the deed is in place, Expedition will promptly fund the transaction, straight to the account of your choice.