Episode 4
MRP 4: How Mineral Rights are Valued
The Mineral Rights Podcast: Mineral Rights | Royalties | Oil and Gas | Matt Sands
June 20, 201843m 33s
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
In This Episode, You Will Learn About:
- Different Approaches Used in Valuing Mineral Rights
- Different Property Types
- The Market Approach (comparable sales)
- The Income Approach (aka Discounted Cash Flow Analysis)
- A rule of thumb you can use to provide a rough estimate of value of some producing minerals.
- We also talk about different factors that go into a mineral rights valuation
- What is a Non-Participating Royalty Interest (NPRI) and when it can be used.
- Selling only a portion vs. selling 100% of your interest
- Long vs. short-term personal & financial goals
- Red flags to look out for (in the fine print of any legal documents)
- and who typically pays for what in a mineral rights transaction.