Through the years it seems that the consensus on this forum has been to hold and never sell your mineral rights. Given the recent events - has that changed for anybody? My wife and I are considering selling our rights for the first time ever. Wondering if we are the only ones.
You’re not fooling anyone flipper Dick Jefferson, you and your buddies are the only ones left trolling this site. Yes the consensus is to hold on to your minerals for the most part or deal with slimeballs, lies and non-disclosure’s.
Do you realize people can actually read your past posts? It’s obvious you’re in the industry and been slithering around the site Cheerleading for your fellow flippers.
First time you thought of selling you say....Seems pretty reasonable right now , almost guaranteed to get top dollar.
we can come up with a quote for you in about five minutes, please provide us with your Real name and contact info. We can make your wife real happy with the highest and best offer available today on GMS.
Our members (newer or older) need to be aware that some comments and topics posted on gms are not legitimate. Meaning they have a motive to TRY and persuade mineral owners to sell.
when you see constant negativity posted or a catchy topic headline like this one , click on the members name and check out their past posts , likely you’ll see a trend.
Second round of flipper layoffs coming , 60 day countdown.... all public knowledge by now
I’ll check back in about 61 days or so to see how many flips are left.
Richard, Hold on to your mineral unless you want to lose money. With production down and not a lot of activity happening right now, the offers from mineral companies will be very low. Be careful on who you talk to when considering selling your rights, there is a whole lot of mineral agents out there who will sign you into a agreement and offer you higher per acre price, but they will not be able to pay it. That will cause them to shop it around and waste your time when they come back to you with a lower per acre price. I would hold on to your minerals and wait out the storm until things pick back up again.
Richard, Of coarse every parcel is unique but it seems mineral buyers have all but vanished. We have leased twice and talk of drilling has disappeared now. About 4 months ago I contacted buyers. About 3 months later they called and said they were sorry they had no interest at this time. We are about 18 months into a 5 year lease. We were some of the last ones to lease in the immediate area do to lease language we wanted and they were eager to get it done. Word was they planned on drilling last year. I may contact the lease holder directly to see if they are interested. If not we will probably lease a 3rd time someday. The problem is with the low hub prices the minerals aren’t worth much right now, even the county tax on them has gone down about 95%. We probably have to hold them a few years until the economy goes back up, but when that happens we’re back to maybe they’ll get drilled again. Yesterday William Barr asked Congress to put our civil rights on hold, maybe the govt will take them at bargain prices and tell us we can’t own them anymore. Strange times, the Republicans want an environment without Civil Rights where they can take our guns, and the Democrats in the house are going to say no.
I may be wrong but I think FRACKING MY CH4 was/is Ron’s buddy.
Good luck to all of us with our minerals
Before you do, think about it. They will never be worth less than in a bear market, which we have right now. IF you wanted to sell, the time would have been several years ago. Now you won't get much. I humbly recommend you wait until the value returns to a more equitable one.
Purely a financial decision. Some folks are more inclined to the 'hold and see' approach. Others know that royalty isn't what it was once cracked up to be. As we all can agree, natural gas prices will never reach pre-2010 era prices. You'll continually be in a flux pattern of $1.70/mcf - $3.20/mcf. Frankly, selling at $3.00/mcf prices won't warrant noticeable higher prices than what's being paid now at $1.70.
To sum it up, it's your decision. A bird in the hand is worth two in the bush. Just make sure you find a reputable company to sell to. Where is your property?
Buyers base the price on getting a 4-5 year return on investment so #1 they are not likely to chase land that will not be developed soon #2 you will never "make out" by selling your minerals in the long term. The only way it remotely makes any sense is if you need cash today and can not wait. I am sure that there has been minerals purchased that were never developed and the land owner was lucky they sold but that is not the norm
If you received $9300 an acre, I would sell it. You must be in a great area with a proposed unit and a great lease. Just research the company first and maybe look at some others. Some Mineral buyers tell you a good rate, but end up shopping it around and holding you in an agreement until they can get you that price.
P.S. There is alot of landmen out of work tying to get landowners into an agreement so they can shop around and make money. If it was me, I would only deal with these companies who are local and have backing investors.
Appalachian Mineral Company, LLC (Morgantown)
Appalachian Mineral Partners (Pittsburgh)
Pikewood Energy Corp (Morgantown)
I have a few family members who dealt with a few of these companies and got paid in 45 days. Just be careful who your dealing with.
I would Never suggest anyone to sell their rights, but if someone needs the money, please do your research first.
I hope this helps.