There’s a lot to consider when it comes to your mineral rights. We’ve included some common questions below. If you have a question that’s not addressed here, please contact us; we’d love to talk to you.
Why should I sell my interest?
Simply put, more control over your assets. Rather than waiting for small monthly royalty checks that can fluctuate and decline, with a large, lump sum payment, you can use your large lump-sum for an immediate need or reinvest. There are also tax advantages—a monthly check is subject to federal income tax, but with lump-sum payment, you can take advantage of capital gains tax rates. In addition, your paperwork and records, as well as estate planning, will be greatly simplified. Learn more.
Why should I sell to Springbok?
We know there are a lot of companies out there. But at Springbok, we do things a little differently. Our local experts are part of your community and will work with you to get you the best deal—in person whenever possible. We have geologists and engineers on staff who take a deep dive into the actual well itself so that you have a solid understanding of what your interest is worth. With a strong financial backing, we can help you close and get your funds quickly. We’re proud of the reputation we’ve built and committed to the service that will help us keep it for years to come.
How much will you offer for my interest?
It varies case by case. Our engineers will look at the operator and the property and verify the royalty on your lease to assure that we get you the best offer.
What are the tax implications of owning or selling mineral rights?
With monthly royalties, you’re subject to federal income tax. By selling, you’re eliminating that long-term tax burden. In addition, you can take advantage of long-term capital gains tax rates depending on how long you’ve had your mineral interests and when you decide to sell.
Why does the amount of my royalty check change from month to month?
Your royalty amount is based on two variables: the market price for oil and gas, and production. As you’re probably aware from the news, the price for oil and gas fluctuates wildly, and your check will reflect any increases or decreases. From a production standpoint, your royalty is based on the amount of oil and gas that is produced. In any reservoir, there is a finite amount of oil and gas that can be produced, so over time, wells will begin to produce less and less. In addition, any mechanical or operational problems with the production equipment could also affect the amount of oil and gas produced, so that will affect your check, too.
What does the future look like for oil and gas prices?
While natural oil and gas prices have been falling due to oversupply, oil and gas prices are hard to predict and can change rapidly, like the stock market. Experts commonly make opposing predictions, so it’s very difficult to forecast.
If the market is so risky, why does Springbok want to buy my mineral interest?
As an individual, your revenues are dependent on production and drilling results in a small area, so if production declines or oil and gas market prices fall, your income can dip drastically. As a corporation, we cast a wide net, so while we do assume risk, we have the volume and scale to manage it. We invest over the long term and buy enough mineral interests to diversify our risks so that we can manage in the event that one of our interest’s value declines.
Does Springbok buy producing and nonproducing interests?
Springbok purchases both.
What if I just want to sell part of my interest?
We can buy all or part of your interest. We’ll meet with you in person to discuss your options and find the best financial solution for you.
How do I know what my mineral interest is worth and that this is the best price?
We have geologists and engineers on staff who take a deep dive into the actual well itself so that you have a solid understanding of what your interest is worth. After our comprehensive evaluation of the well, we’ll also look at the current price of oil and natural gas in the U.S. and abroad, oil and gas futures, global usage patterns, and projections for future demands. We use all of this information to develop the most competitive offer.
What if I’m not ready to sell? Can I wait and request another offer?
Yes, you can. Our offer does not obligate you to sell your interest. However, the prices could decline and we can’t guarantee you’ll receive the same offer or that we’ll still be purchasing in your area.
How quickly will I receive my lump-sum payment?
We’re well-funded, so we can close and get your check to you quickly. When possible, we’ll bring your payment to you personally.
Why would I not want to sell?
When you sell your royalties, you won’t receive monthly checks anymore, but you will have a larger, one-time payment. If this seems like too big of a decision right now, or you’re just not sure, you can always sell a portion of your mineral interest. This will help reduce your financial risk and provide you a lump-sum payment, but you’ll still have some monthly royalty checks.