Value of Selling Mineral Rights in Marcellus Shale

Value of Selling Mineral Rights in Marcellus Shale

Are you trying to determine the value of selling mineral rights in Marcellus Shale?  Making this determination can be very difficult for a number of reasons. The housing market has public data available to tell you what the houses around you are worth. Unfortunately mineral rights do not work the same way you can’t readily see the value of mineral rights sales in your area online.   Even if you only want to see a ball park number on what your minerals could be worth it can be difficult or impossible to find.

So how do you find out how much your mineral rights are worth when you sell? We’ll explain some of the factors that can affect the value of mineral rights when selling, and explain the best way to determine the value.  Want to know our recommendation for the best way to find out the value? Skip to the bottom to see our recommendations.

Factors affecting value when selling mineral rights in Marcellus Shale

The Buyer: The buyer for your property will have a significant impact on the price you receive.  In some cases, buyers are investors and not Oil & Gas companies. The reason is that an Oil & Gas company would rather lease your property than buy it.  It costs them significantly less to lease, which means less risk for them.  Private buyers may be able to offer reasonable amounts for your Oil & Gas rights, but it’s important to know who you are dealing with.

Surrounding Production: The production of wells in your area will have a significant impact on the sales price of your property. If production in your area is concentrated in higher priced Oil, and production volume is high, you will get a higher amount for your property.  Knowing the production surrounding you can assist in negotiating a higher price for the sale of your mineral rights.

Current Production:  If your property currently has production, you should be receiving a royalty check for this production.  In most cases, you can sell your mineral rights and keep your royalties.  You can also sell the royalties with the mineral rights.  Both royalty income and mineral rights are valued entirely different so it’s important to know what your selling and the value of each.  Generally speaking, if your property has current production and you’re receiving a royalty check, this will make your property significantly more valuable and much easier to sell.

Bonus: Check out our post on the value of royalty rights.

Leasing activity:  If there is significant leasing going on in your area, you may be approached to SELL your mineral rights rather than lease them.  It’s important to note that selling your mineral rights is much different than leasing your mineral rights.  By selling, you are giving up all future income from producing Oil & Gas on your property.  If there is significant leasing going on in the area, investors will approach mineral owners to purchase their mineral rights with the intent of leasing them out to recoup a portion of their investment.  Carefully consider selling your mineral rights rather than leasing them.

The best way to determine the value of your mineral rights is to get in touch with someone who knows your area and can help you better understand your property and what value is may bring when you want to sell your mineral rights. In addition, it’s important to discuss whether selling is really the right option.  In many cases leasing is a better long term option.

Our recommended way to determine value of mineral rights

While there is no one who can give you an exact answer, we have two solutions that can at least help you get a ball park understanding of the value.

Solution 1: Marcellus Mineral Owners Free Consultation

We speak with Mineral Owners all over the Marcellus Shale every day.  As discussed above, knowing what’s going on in your area can be a good indicator of value.  Since we speak with mineral owners constantly, we have a good idea of the value of minerals in most areas.  We can’t give you an exact answer, but we can usually provide you with a ball park number so that you know what you can expect to receive when you lease mineral rights in the Marcellus Shale.

Get a free consultation with us by filling out our Free Consultation Form

Solution 2: US Mineral Exchange Listing Service

The best way to find out the true value of your mineral rights in the Marcellus Shale is to list your mineral rights online and let buyers compete for your property.  By listing your property online you can market your property to entities that lease mineral rights all over the country.  The only true way to know the current market value of leasing your mineral rights is to list them online and see what offers come in.  We recommend US Mineral Exchange because they provide services specifically for the benefit of mineral owners.

You can visit them here: US Mineral Exchange