Why Sell?


Why Sell Your Minerals or Oil & Gas Royalties?

One thing we have learned since founding Tradition Royalties is that there are many reasons an owner might consider selling all or some portion of their mineral or royalty interests. We often receive calls from owners who recognize that selling all or some portion of their minerals and/or royalties is an excellent mechanism to avoid depleting savings or borrowing money to handle cash needs for college tuition, medical bills or other unanticipated expenses. Tradition strives to accommodate each mineral or royalty owner’s specific wishes.

Many mineral and royalty owners find different reasons to sell including but not limited to:

  • Debt Relief – Selling mineral rights and/or royalties can bring a lump sum payment providing a quick and hassle free way to pay off high interest credit cards, mortgages, bank loans or other burdening debt.
  • Unanticipated Expenses – Instead of providing a small royalty each month, selling your mineral and/or royalty rights can provide an upfront large cash payment to utilize for other immediate needs. Whether it is vehicle repairs, expenses related to your home or other necessities, selling minerals and/or royalties can assist you in solving short term money needs.
  • Future uncertainty regarding oil and gas – Royalties are paid on production from naturally depleting resources and not considered appreciating assets. Production from Petroleum reservoirs doesn’t last forever. Additionally, political pressure to escalate taxes paid on windfall profit and on oil and gas income is ever increasing. Selling mineral and/or royalty rights lets you put the risk associated with oil and gas production in the hands of people who understand that risk.
  • Estate Planning Issues – Minerals and/or royalties inherited from older generations become exponentially divided. That most often means that each person in the next generation gets less and less money (individually) than the previous generation. At some point the paperwork cost and taxation hassles aren’t worth the small amount of income received.
  • Provide capital for an alternative investment opportunity – Selling mineral or royalty interests can provide a lump sum of cash for another investment which might provide a greater rate of return and require less management and paperwork.
  • Eliminating hassles related to the management of mineral/royalty ownership – Disposition of royalties and/or minerals will vastly simplify your tax return and eliminate required maintenance of depletion schedules, property tax records and division order

Tradition seeks to offer you the highest price possible for your mineral or royalty rights and can accommodate your needs with a quick and smooth closing regardless of the reason you choose to sell.

To begin the process, click the Request an Offer link for a free no-obligation review of your property or Contact Us at our corporate office to speak with one of our Evaluation Professionals. We look forward to working with you.