MRP 269: Understanding Royalty Based Loans - A Guide for Mineral Owners
The Mineral Rights Podcast: Mineral Rights | Royalties | Oil and Gas | Matt Sands
Audio is streamed directly from the publisher (traffic.libsyn.com) as published in their RSS feed. Play Podcasts does not host this file. Rights-holders can request removal through the copyright & takedown page.
Show Notes
https://mineralrightspodcast.com/mrp-269-understanding-royalty-based-loans-a-guide-for-mineral-owners/While borrowing against oil and gas royalties isn't widely discussed among mineral owners, it is an important financing option for those receiving regular royalty payments. This practice, known as Reserve Based Lending (RBL), has been common in the oil and gas industry for decades but is now becoming more accessible to individual royalty owners. Understanding how these loans work, their requirements, and their risks can help large mineral owners make informed decisions about leveraging their royalty income without having to sell their valuable mineral interests. We also discuss other options for borrowing against modest royalty income, but that may come with counterparty risk to consider.
As always, links to resources mentioned in this episode can be found in the show notes at mineralrightspodcast.com.