Has anyone had dealing with Caddo Minerals Oil & Gas Investments, Austin TX?
Yes, they will make money - a lot if you sell to them. They sell via Energynet.com if you get a letter from them, you probably have a valuable interest.
I agree with rainmaker. They are very good at making money…
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For themselves. Search upper right first on threads about pros and cons of selling before you make a decision.
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Has anyone sold to them? They offer a lot of money.
Any time I get an offer for my minerals, I ask myself, “what do they know that I do not know?” Could there be more drilling planned? What does this company do-buy for self, working for operator, flipper? (Nothing wrong with any of those, but what is their motive?) Is there a new horizon that is about to be drilled? What are my long term financial goals? Have I talked to my CPA about capital gains tax and how that would figure in? What is my time frame-need money now for medical bills or college? Or holding minerals as an investment?
“A lot of money” is relative. The value is “a willing and informed buyer under no compulsion to buy and a willing and informed seller under no compulsion to sell agreeing on a price”.
I would consider other offers before choosing to sell to them. Like others have said, they make money on reselling the interest on an online mineral auction website.
If you are interested in selling, one of the first things you should do is get a good idea of what you own, if you don’t already know. “XXX number of royalty acres in whatever section/block”. If you’re already being paid by an operator, that certainly helps. Once you have an idea of what you own, it would be more prudent to approach several different buyers who are active in that area to get a feel for what the current market is. If what you own is very, very small, then it will shut the doors of many good, competitive buyers and a re-seller may be your primary option. Though, there are still a lot of smaller groups out there who will take a small interest and pay a reasonable price for it. Those folks are just harder to find since they don’t solicit you directly or have fancy websites.
I have had several offers on the same property but one was very large (Caddo). How do I find different buyers who are active in the area? Thank you
They’re a solid company with a very specific and experienced business model. Do they make money, yes, but so does Pizza Hut and every other for profit business. Call them and ask some questions, they aren’t evil. They will answer any questions you have. If you don’t like the deal or don’t feel comfortable then don’t do business with them. There seems to be a theme in the mineral business that any mineral buyer is scum of the earth, and any seller is an idiot. That’s just not the way it is. I’m not in the business anymore but I can tell you from years of experience that there are more scummy sellers than there are scummy buyers.