MRP 209: Listener Q&A July 2023

You are currently viewing MRP 209: Listener Q&A July 2023

MRP 209: Listener Q&A July 2023

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In this episode, we answer more of your questions from hiring a mineral manager to how to start investing in minerals & royalties, this one covers a lot of ground. Thanks to Mike, Tom, Dave, Don, Ivette, and Larry for submitting your questions! Tom asked a great question related to the chances of drilling for oil near where he owns mineral rights. If you have this question, there are two amazing resources to help you with this common question.

First, my upcoming Mineral Management Basics course addresses many of the common questions that I get around the different types of mineral and leasehold interests, how to read a legal description, and how to identify nearby oil and gas activity. Be sure to sign up to be on the wait list to be notified when it launches later this year! In the meantime, if you would like 1-on-1 coaching, you can send me an email at feedback@mineralrightspodcast.com.

There is also an amazing free tool that can help you automate some of the things related to tracking nearby activity and tracking your royalty payments. Which brings me to the sponsor for this episode:

MineraliQ is a free online platform for mineral owners which will automatically connect to your well data – helping to track all your royalty check payments and portfolio value.  Discover what your minerals are worth in real-time, view royalty payments, track income trends, and know the exact location of your properties using their interactive map.  Activate your free account today by clicking the link here: MineraliQ.com

Thanks again to everyone who left a review or who submitted a listener question!  If you have a question about your minerals or royalties, you can send it to feedback@mineralrightspodcast.com and who knows we might just answer it on the air!

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Listener Questions

I have recently inherited the income from mineral rights (ownership of the rights remains in the trust) and am interested in learning about what the management company roles and responsibilities to trust beneficiaries is. What services should the beneficiaries expect from the management company and the trustee?

Mike

Question #2

MATT:

WHAT ARE THE CHANCES OF THEM DRILLING FOR OIL IN THE POWDER RIVER BASIN IN SOUTHEASTERN MONTANA?

Tom

Question #3

Enjoying the podcasts.  I just sold rental property and am looking to invest proceeds into mineral rights through 1031 Exchange.

Dave

Question #4

Hi Matt,

Thank you for what you do for mineral owners like myself. I am facing a capital gains tax issue for 2022 and could really use your counsel. 

Here is our issue:

Along with myself and two siblings, we were blessed with a mineral inheritance in 2013. In 2016, three wells were drilled and we have been receiving royalty payments. We sold our minerals in 2022 and are now facing a capital gains tax. We need help in determining the base value of our minerals in 2013. There were no producing wells until 2016. Can you offer suggestions as to how we can arrive at a base value for our minerals.

Don

Question #5

Hi Matt,

I appreciate your welcome email below. I am a Petroleum Engineer and have worked in oil & gas for over 17 years. I worked in different roles within those years such as Reserve Engineer, Production/Operation Engineer, A&D Engineer, and Reservoir Engineer. I also have experience in different basins across the country. Since it has been hard to find a job in the industry, I have decided to explore the option of buying mineral rights. I would like to start my own company as a mineral rights/royalty interest owner.

 Honestly, it is a little bit intimidating to absorb all the risk involved in becoming a mineral rights owner. However, I would like to put in practice my experience in the industry and start with some kind of a small deal first.

I find your mineral rights podcast to be very helpful about everything to be considered in the business of buying mineral rights.

 I will be delightful to find out more information about how to enter the business without risking too much capital.

 Thanks and kind regards,

Ivette

Question #6

I read an article you wrote on minerals and enjoyed and learned a lot. I think the article was written in early 2022.

 I am an investor, primarily in alternatives spread over about eight asset classes which means I am always playing the other man’s game.

 I do have an allocation to a couple of  small mineral funds that I got in around 2019. They have preformed well.

 My question is how you feel about new mineral funds?  I assume mineral and royalty prices have gone up which makes me concerned that they might not have the IRR or MOIC that I experienced the last three years.

 I would appreciate your feedback and thanks for informing people like me that have no real knowledge about the industry.

Larry

Resources Mentioned in this Episode:

Interested in Investing in Minerals and Royalties?

1031 Exchange

Valuing Mineral Rights and Royalties

Hiring a Mineral Manager

Mineral Rights Education

Powder River Basin

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Thanks again – until next time!

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