Minerals & Royalties as an Asset Class: Why Private Equity Keeps Rolling Up Royalty Interests
Most of what we've written about minerals and royalties on this blog is from the owner's chair — how royalties pay, how
#Mineral Rights
Overriding Royalty Interest (ORRI), Explained: The Royalty That Dies With the Lease
Across the pieces we've written on who owns a well — the mineral royalty, the working interest, the lease-or-participate decision — one interest type keeps
Lease or Participate? How a Mineral Owner Chooses Between a Royalty and a Working Interest
You own the minerals, and a well is coming. At some point an operator hands you a choice that will shape the entire economics of
Division Orders Explained: How Owners Actually Get Paid (and Where the Errors Hide)
A well comes in on minerals you own, and a few months later an envelope arrives: a division order. It asks you to certify your
The Unleased-Owner Trap: How Texas Drills Your Minerals Without Your Signature
Most mineral owners believe something reassuring and slightly wrong: that nobody can produce oil and gas from under their land unless they sign a lease.
Mineral royalty cash flow to PV-10 — the valuation modeling step
Stage 5 of the Texas mineral valuation pipeline: the four inputs (Arps decline, price deck, lease economics, discount rate), the monthly cash-flow math, and the 13-line validation checklist that catches the recurring NPV errors.
Texas decimal interest math — pooled vs allocation walkthrough
Same well, two methods, 32% gap. The math behind why allocation-well decimal interest differs from pooled approximation, with a worked example and the PostGIS geospatial step that makes the answer defensible.
Surface parcels to net mineral acres — the data layer every Texas mineral valuation depends on
Stages 1 and 2 of a defensible Texas mineral valuation: acreage technique (43,560 sq ft, geodesic projection, source tiering) and ownership resolution (severed estates, UMI math, the 3/8 example). With an 8-line audit checklist.
Why pooled math fails Texas mineral valuation — the allocation well story
Texas RRC has issued ~5,000 allocation well permits since 2022 vs ~600 PSA permits. Generic mineral calculators built for forced-pooling states get this wrong by 30%+. The legal story, the math gap, and what to do about it.
How oil & gas mineral royalties actually pay — and where the headline numbers quietly inflate
$600K in year one, $250K in year two, $20K by year ten — and roughly $1.35M cumulative across a decade. A line-by-line walkthrough of how an oil & gas royalty actually pays from first principles, with the seven things that take 20-40% off the headline.
How small oil wells actually make money — and where seller pitches quietly inflate the price
A line-by-line walkthrough of small-operator oil well economics using a real West Texas case study. Plus the three things almost no pitch P&L includes — decline, workover reserves, and plugging — that move the defensible price by 25-50%.