Oklahoma has the second most crude oil wells and the third most natural gas-wells in the United States. Oklahoma is also the third-leading producer of natural gas and the seventh leading producer of crude oil among all the states in the country. The activity in Oklahoma has been beneficial for local mineral owners, many of whom have been able to sell their oil and gas royalties at historic high prices.
Though it is true that not everyone is in the right position to sell their royalties, it is a decision that all owners should understand before making. While earning oil and gas royalties may seem simple, there are some things owners should be aware of. First of all, oil and gas royalty checks are likely to fluctuate due to changing market conditions. Owners must also understand that the production levels on a particular well will decrease over time as that well depletes its reserves. Thus the size of the royalty checks received on that particular well will also shrink overtime. Because of such movements, it is often difficult for those receiving royalty payments to determine what their next royalty payment will be. Such uncertainty can make it more difficult to make personal financial plans particularly during periods when oil and gas market are more volatile. Owners must also understand the type of interest they own as there is a difference between royalty interest and overriding royalty.
Fortunately, Broadmoor Land & Minerals is committed giving you answers. We want to make sure that you are familiar with important terms that relate to your particular oil and gas property and that you understand how different types of interests work. Our team has been working in the industry for more than 30 years and we have helped numerous owners better understand their oil and gas royalties so that they were able to make the right decision for their particular situation. Contact us today if you wish to know more about oil and gas royalties and may be interested in selling yours.
Broadmoor Land & Minerals is a family company and we know that it is important for you to know who you are working with. Broadmoor Land & Minerals is not a broker, or agent company. We are a direct buy-and-hold company. Every royalty we purchase is carefully managed and we take great pride in the level of professional management given to every asset that becomes part of the Broadmoor portfolio. This dedication to our research and care, and the reliance on our industry expertise guarantees that each owner gets the full value for their interests when they sell their oil and gas royalties to Broadmoor. You can be sure that you will always be able to speak with us, and work with directly with us.
The decision to sell is always a personal one and owners that we have worked with have certainly had many different reasons for making that decision. Our job is to professionally manage every oil and gas royalty that we purchase. Because we are confident in our ability to ensure that each interest is able to reach its full future potential under our management, we are able to give owners the maximum value for their royalties, no matter their reason for selling.
It is important for royalty owners to understand that oil and gas reserves are continuously depleted as more and more cars, houses, buildings and many technologies and consumer products depend on oil and gas for their energy usage. These resources are non-renewable and all oil and gas wells eventually run dry. As a result, owners also often feel the decline of their oil and gas royalty payments as their particular wells produce less and less oil and gas every year. This also means that, over time, the current market value of oil and gas royalties will decline over time as the total future production, or the level of remaining oil and gas reserves, will be much lower a year from now than it is today.
When it comes to estate planning, many owners have preferred to sell their royalties, converting the uncertain string of smaller future payments into a much larger lump sum cash payment. Not only have these owners preferred the security and flexibility that an upfront, fixed amount of money has provided them, but they have opted to leave a hassle-free cash payment to their heirs.
When owners choose to pass on their royalties to their heirs, instead of converting those royalty interests to cash, the heirs of the estate then find that they are left with an asset that must be managed. Rather than receiving a sum of cash with which they may freely spend, save or invest at will, these family members suddenly become responsible for complicated and expensive legal probate processes to ensure that the royalties are properly placed under their own names. They must then properly manage those royalties on their own in order to recognize the full value of their newly inherited interests, though they may have no knowledge of or familiarity with the oil and gas industry. By working with Broadmoor Land & Minerals, these owners are choosing to pass value down to their family members, rather than passing on burden.
There are many other personal reasons that often lead owners to the decision to sell their oil and gas royalties. Owners have used the proceeds from selling their interests to take trips, to purchase a car or truck, or to put a down payment on a new house. Some who have been feeling a financial pinch from the state of our recent economy have been able to escape mounding debt by selling their royalties to pay medical or insurance bills, credit card debts, mortgages and so on. Others have even used the money to start new businesses.
No matter what the reasons may be, Broadmoor Land & Minerals can help and is committed to giving you the maximum value for your royalty interests. Our goal is to make every transaction as smooth and efficient as possible. We carry the work load, and make the process as quick and easy for you as possible. We offer very competitive and honest offers for your oil and gas royalties.
Please feel free to contact us if you have any questions you would like answered. We value all owners we are fortunate to make business relationships with and we hope to work with you soon.