i received a general letter to buy mineral rights,dated 4/27/20. just wondering if their is any activity or reason a person would want to sell at this particular time?
Personally, I would not sell when prices were down unless I absolutely had to. There are companies out there still buying.
Because private equity groups are in a position to take gambles and they don’t always pay off. A great example is the last few years LOL… the majority of their mineral investments are way too far underwater to ever recover because the decline in production on horizontals they bought under are going to fall faster than oil prices can rise.
Selling is a way of reducing your personal risk if the numbers are right. I have sold many interests at great prices, but I also still own interests that I regret not selling for some of the prices I was offered last year.
The days of huge speculative prices are over, at least for several years, but minerals still have value. A wise person always entertain offers, but don’t sell just to sell just because things look bad.
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thanks for your opinion, which i highly respect. i do not need to sell so just sit back and wait will work just fine. mary phillips
thank you for your thoughts. i pretty much think it is best to hold on to what i have. mary phillips
Someone in the Montague County group may be able to answer as to activity. If you don’t need to sell, then just sit back and wait and see what happens. If I were to sell, I would get several offers, not just one.
Mary and others, I’ve had a number of calls and letters, low balling offers, trying to to rip off people that are in a bind due to the pandemic. Martha is right - don’t sell unless you have to. I hate to see mineral owners taken advantage of!
I got an offer the other day along with a prepared deed. I noted they had a right to reduce the price, a gotcha, after signing. All i can say is be very careful and might be worth having someone with experience review it with you. I would not sell.
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Many people are in the middle of a cash squeeze and don’t want to take on additional debt to cover their negative cash flow.
Mineral rights are an asset that can be monetized to create cash, without having to resort to putting an additional burden on their balance sheet (i.e. financial position).
It can be a win/win for both parties. The buyer picks up the mineral rights at a good (discounted) price and the seller generates cash without having to go further in debt.
It really depends upon your circumstance…
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