Minerals can be a great asset on your balance sheet. That being said, not all minerals are created equal. While many claim “my grandfather would roll in his grave if I ever sold”, they also don’t realize that minerals don’t last forever. There are several Pro’s and Con’s to holding mineral assets.
Pro’s
- Passive Cash Flow
- Asset on the Balance Sheet
- Semi-Liquid on a secondary market (30-45 Day deal cycle)
Con’s
- Exposure to unforeseen risk (Environmental, Operator Error, Rail Road Commission, Etc.)
- High Taxation – mineral holders pay ordinary income tax on production *above all consult with your CPA or tax professional*
- Size Matters – smaller mineral interests is not desirable due to due-diligence pursuit costs
- Not all minerals are created equal
- Title Issues can dilute your holdings if not corrected
- Volatility of commodities markets
Everyone’s situation is different. Understanding the market value of your asset is the first step in making the best strategic decision for you and your family. Please reach out if there is a way we can provide the help you need.
Mineral Interests Calculator 