Why Should You Sell Your Oil And Gas Royalties?

Oil and gas royalties are a lucrative source of passive income. But selling them is a complex decision. This article is a breakdown of some reasons why you should consider selling their royalties.

1. Diversification and Portfolio Restructuring

Most of the time every person or entity with mineral and royalty assets will buy and sell their assets from time to time. This diversifies or restructures their portfolio 

of assets.

Owners of mineral and royalties or other oil or natural gas assets may try to divest their lower-yielding assets to fund other potentially higher-yielding assets of a similar or like-kind nature.

2. Lump Sum Payment

You can compare owning producing minerals and royalties to a winning lottery ticket and like the actual lottery, most lottery winners go for owning the lump sum payout because they are unaware of what will happen in the future.

With a lump sum payout, you can eliminate debt, purchase a new home, or cover college expenses.

3. Reduce Risk and Volatility

It's not possible to predict where prices will go from day to day, month to month, or even year to year anymore as there are so many factors at play, or better yet, which operators will stick around for the longer time and which ones will go belly up.

If you’re with this level of risk and volatility, you need to consider transforming some of your minerals into cash.

If any of these reasons sound like something you would like to explore further, you can consult with Mineral-Rights.com. You can completely count on them for producing or non-producing mineral rights for sale. They complete the entire process simply and easily. With diversification of asset you can unbound a large amount of your net worth from being concentrated in a single area.