We find that there are many reasons landowners sell their minerals/royalties. We also find that no two landowners are ever alike. Ultimately, the benefit to any landowner is receiving an up-front lump-sum payment in cash for minerals or royalty that will take 10 – 40 years to payout. Whether it is fear of rising capital gains taxes or the desire to diversify into safer assets like gold, selling your minerals or royalty can be a prudent decision.
- Uncertainty about Future Production & Decline Rates
- Cash Flow Needs
- Estate Liquidation
- Tax Concerns (Capital Gains)
- Accounting Elimination