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re: O&G baws--do investment firms buy mineral rights?

Posted on 3/29/25 at 3:28 pm to
Posted by UptownJoeBrown
Baton Rouge
Member since Jul 2024
10018 posts
Posted on 3/29/25 at 3:28 pm to
It’s how Pennington made his money.
Posted by Gauxt
Prairieville
Member since Oct 2013
397 posts
Posted on 3/29/25 at 3:50 pm to
If I purchase a piece of property, and purchase the mineral rights, I keep them until I either sell the property and the mineral rights, or just the property and keep the mineral rights for 10 years, unless it hits.

Is this statement generally correct?
Posted by TGCM
Member since Dec 2020
97 posts
Posted on 3/29/25 at 4:29 pm to
LINK

Here is an article that explains how mineral servitudes work in Louisiana. It is different than how mineral royalties (as opposed to lease royalties) work.

Generally the buyers have information that the sellers do not have in terms of development plans. As someone above said, unless you need the money, don’t sell. You will pay tax and assuming you want another investment, you will have to find an alternative investment that will return more than what your minerals rights would return plus make up for the lost taxes and transaction costs. Obviously, some offers may justify selling but generally speaking, it is best to keep your minerals. And, generally, the mineral servitude owner will also have surface rights even though they didn’t buy the surface, unless you contractually provide otherwise. If you contemplate selling, you should consult with a lawyer to help you and advise on these types of issues.
Posted by El Segundo Guy
1-866-DHS-2-ICE
Member since Aug 2014
11654 posts
Posted on 3/29/25 at 4:46 pm to
Iunderstand PE firms buying mineral rights.

But this guy is under impression that the interested buyer is a major investment firm for an actual ETF like an o&g industry ETF or something like that.

Does that type of stuff happen? I know they would buy stock in o&g businesses for an ETF, but to buy actual mineral rights is strange.
This post was edited on 3/29/25 at 4:48 pm
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