Mineral interests are a great source of regular cash flow, but monthly royalty payments are distributed to mineral owners in small increments. Many owners sell their minerals for cash to support their retirement, start a business, support family members, pay off debt, or cover unexpected financial challenges. Whatever might be driving your desire for immediate cash liquidity, Next Peak Energy provides you the opportunity to pull forward multiple years’ worth of future cash flow in one lump sum. Interested in receiving an offer? Don’t hesitate to reach out!

There are many risks that come with owning mineral interests, and those risks can be especially meaningful if your mineral interests comprise a significant portion of your net worth. When you sell your mineral interests, you reduce your financial exposure to volatile swings in oil and gas prices and eliminate the risk of any operator mismanagement on your acreage. Selling your minerals creates an opportunity to spread your risk and invest in other assets over which you have more decision-making control vs. minerals.

Passing down your (or a family member’s) mineral interests as part of an estate can be time-consuming, expensive, and difficult to manage. Selling those interests for cash simplifies the process, lowers advisory and legal costs, and ensures a fair, transparent distribution of the assets for all stakeholders. Plus, many beneficiaries would rather receive cash they can easily understand, use, or reinvest rather than mineral rights, which can be hard to value and come with significant unpredictable risks.

As a mineral owner, you’re responsible for multiple layers of taxation, including income taxes on royalties, severance taxes on production, and annual ad valorem taxes based on appraised mineral value (similar to property taxes on real estate). By selling your interests, you can streamline your tax situation, potentially lower your overall liability, and avoid the hassle of complex filings. Plus, if you’ve held your minerals for over a year, sale proceeds are typically taxed at favorable long-term capital gains rates. Because mineral interests qualify for 1031 Exchanges, you may even defer those taxes entirely by reinvesting your proceeds into real estate or other mineral assets, such as Next Peak’s diversified portfolios. We always recommend that you consult with a qualified tax advisor when considering selling your mineral interests.