When dealing with Hydrocarbon Minerals you won’t be treated like a client, you will be treated like FAMILY.  Hydrocarbon Minerals and its affiliates have been serving mineral owners since 2005 by helping them manage, monetize, and maximize their mineral interests.  Since inception Hydrocarbon has been successfully involved in hundreds of mineral transactions across the country.  We take great pride in being a fair, honest, and professional partner that specializes in mineral divestitures, mineral management, and oil and gas leasing.

Hydrocarbon Minerals is a trusted partner that can guide you through the complex selling process by being fair, transparent, and professional.  We will work tirelessly for an optimal outcome. 

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About Us

Hydrocarbon Minerals and its affiliates are experienced purchasers and managers of oil and gas mineral interests.  Since 2005 we’ve been helping mineral owners achieve their financial goals, by successfully closing countless mineral acquisitions and leases in Colorado, Wyoming, Utah, Texas, Oklahoma, Texas, Louisiana, Mississippi, Alabama, New Mexico, North Dakota, Pennsylvania, and Ohio.   Our Principals have decades of combined experience acquiring and managing oil and gas assets in some the most resource rich basins in the country.  Our experience gives us the ability to deal with the most complex of issues.

We strive to create equitable and fair outcomes for mineral owners and industry partners alike.  Our experience, network and integrity enable us to timely and professionally execute transactions.  No deal is too small or too large for us.  Allow us to share our expertise with you.

Our Team

Danny Tabally

Vice President of Acquisitions

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Fahim Aref

President

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Rami Affaneh

Vice President of Operations

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Saraee Vandrunen

Office Manager

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Our Services

Acquisitions/Leasing

Our experienced land professionals shall deal with you fairly, professionally, and transparently. They will help simplify the complex world mineral rights.

Valuations

Our in-house team will generate a valuation for your mineral interest based on geology, location, lease terms, operator, commodity prices, and existing production, if any.

Title Verification

Our seasoned title professionals will verify your ownership and assist in curing even the most complex title and probate issues.

Why Sell

Owning mineral rights may not be the ideal situation for many mineral owners.  It may take many years before significant development occurs on your mineral acreage, drilling outcomes are uncertain, and oil and natural gas prices have been historically very volatile.   We take a long-term, portfolio-type approach to acquiring and owning mineral interests.  This allows us to make you a lump sum offer for your mineral rights.  The potential benefits of selling include:

  • Eliminate the risk of being a mineral owner and preserve your capital.
  • Pay-off outstanding debt such as your mortgage, consumer debt, auto loan, and student debt.
  • Invest the money in land, real estate, blue chip stocks, or any other investment that would be suitable for your long-term financial goals and risk tolerance.
  • Improve your life by buying a new home or renovating your existing home.
  • Most mineral sales provide for tax advantages since they usually qualify for long term capital gains tax rates vs. ordinary income tax rates.
  • Most mineral sales qualify for a 1031 tax-deferred property exchange that will allow you to invest tax-deferred dollars towards the purchase of another property.
  • Put your children or grandchildren through college.
  • Take that vacation you’ve always dreamed of taking.

FAQs

What are oil and gas mineral, royalty and overriding royalty interests?

Oil and gas minerals, royalties and overriding royalties are similar in that they all receive revenues from the production of oil and gas from a well, and they do not pay for the drilling or monthly operating expenses of the well. Often you will see the term “royalties” used interchangeably to mean either mineral interests, royalty interests or overriding royalty interests. However, there is a slight difference between minerals and royalties, and there is an even greater difference between overriding royalties and both minerals and royalties. Mineral interests and royalty interests are similar in that both involve ownership of minerals under the ground. They both receive a portion of the income from the production of oil and gas. The main difference is that the owner of a mineral interest also has the right to execute leases and collect bonus payments, and the owner of royalty interests does not execute leases or collect bonus payments. Both mineral and royalty owners receive income once the well is producing, but only the mineral owner receives the up-front bonus payment. Unlike mineral and royalty interests, overriding royalty interests do not constitute an ownership of minerals under the ground. Instead, overriding royalties constitute ownership of a portion of the revenues generated from oil and gas production, and the ownership expires when the lease has been abandoned due to cessation of production. Overriding royalties are created from the working interest. For example, a land man may have secured the leases for a well that ABC Oil Company is going to drill. Instead of a cash payment for his services, the land man may have received a 1% overriding royalty interest in the well. If the well is successful, then the land man will receive 1% of the revenues generated from oil and gas sales. Like mineral and royalty owners, the owner of an override also receives a portion of the income from the production of oil and gas. The main difference is that the owner of an overriding royalty does not own the minerals under the ground, only proceeds from the production of minerals. Once the lease has expired and production has ceased, the overriding royalty interest expires. Conversely, the owners of minerals and royalties maintain their ownership after production ceases.

Why do people sell oil and gas royalties?

There are a variety of reasons that people sell oil royalties. One of the most common reasons is that the oil royalties are in an estate and the heirs would prefer to receive cash instead of the oil royalties. Sometimes the oil royalties are too small to divide among the heirs, or the heirs are not familiar with managing oil and gas royalties. Another reason is that some owners no longer want to manage their oil royalties and want to simplify their investments. Finally, some owners would simply like to receive the cash for an immediate need.

What type of interests does Hydocarbon Minerals buy?

Hydrocarbon Minerals buys producing and non-producing mineral, royalty and overriding royalty interests located throughout the United States. We buy single well interests or multiple well interests. The oil & gas royalties may all be located in the same county, or they may be located in different counties or even different states. Current areas of interest include the D-J Basin, Permian Basin, Powder River Basin, Anadarko Basin, Arkoma Basin, Eagle Ford Shale, Austin Chalk, Haynesville Shale, Marcellus Shale, Utica Shale, East Texas, and the Bakken Shale.

How do I receive an offer for my oil and gas royalties?

In order to make an offer, we must determine the current value of your oil royalties. To do this, we need to get some information from you. You can either call us 708-443-4400, or you can submit the information online. Once we’ve receive the necessary information, we will promptly reply with an offer. We offer competitive prices and at no cost to anyone selling oil royalties. If you receive our offer and decide to sell your oil royalties, then we will finish our title due diligence and prepare the mineral deeds. Once you decide to sell, there is very little required of you to complete the transaction. When buying, we assume all the costs associated with completing the sale, including mineral deed preparation and filing fees.

What documentation is required to receive an offer?
  1. If your interest is producing, copies of 6 month’s worth of revenue statements from the oil company.
  2. If your interest is non-producing- a copy of the most recent oil and gas lease.
  3. Copy of the deed or instrument where you acquired the interest, if available.
How does Hydrocarbon Minerals determine the value of my oil and gas royalties?
  1. Production History and projected decline curve.
  2. Operator- Some are more successful than others.
  3. Reservoir Formation – Some Reservoirs have longer production histories than others
  4. Commodity Price Risk – Gas, Oil, or both – is it sour, treated, etc.
  5. Future Production and Development.
  6. Interest Type – Royalty, Overriding Royalty, Mineral Rights/Interest, Non-Participating Royalty Interest, or Working Interest.
  7. Historical Cash Flows and Averages for: 12 months, 6 months, and 3 months.
  8. Tax Rates for Purchase and Severance may be too high, low, or non-existent pending your state of where the interest is located, which affects a property’s value & offer rate.

The information above allows us to calculate current reserves with a prediction of future reserves and cash flows. Our objective is to offer you fair market value while addressing risks and uncertainties that may be involved and commodities prices.

If I ask to receive an offer for my oil and gas royalty, am I obligated to sell?

Absolutely not. Asking for an offer does not obligate you to sell your oil royalty. Also, receiving an offer does not obligate you to sell your oil royalty. If any of your questions were not answered here, please feel free to contact us.

Contact Us

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