How fast do the royalties decline? I'm about 9 months into receiving checks and the most recent showed a big decline. They were consistent up until now. If the decline happens so quickly, how are these companies going to make big profits?
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The decline is rapid, but they also most likely have the well choked back. The decline you're seeing could be the result of a new choke rather than a plummet in production. Watch how the next few months progress and you may see a wide variety of royalties, depending on what they're doing.
"If the decline happens so quickly, how are these companies going to make big profits?"
Yeah, that's been a question a lot of us within the industry have been asking for a few years now.
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