14 Oct Key Focus for Mineral Owners
Am I prepared to transfer my mineral holdings on to the next generation?
Transferring mineral holdings to the next generation is an opportunity to empower future family generations or advance important philanthropic goals. For the unprepared, however, it also holds the potential for catastrophic wealth destruction.
If you are contemplating transferring mineral holdings, the following basic assessments can increase your preparedness:
- Can you locate your mineral holdings on a map?
- Are you certain as to the exact size and nature of your mineral interests?
- Have you compiled a comprehensive inventory of all records – oil and gas leases, deeds, and agreements – that will be necessary for the next generation to accurately administer these assets?
- Is the next generation educated on the nature of oil and gas assets and prepared to meaningfully monetize these valuable interests?
- Are they familiar with mineral valuation, production decline rates, future cash flow calculations, and the various non-hydrocarbon income streams associated with oil and gas production?
Massive Minerals Management ensures that clients are intentional about maximizing the value of their assets, as opposed to merely hoping for the best. This entails creating a comprehensive, accessible, and understandable profile of a client’s entire mineral portfolio that is complete with all necessary supporting documentation and ownership information. We then work directly with wealth managers and estate planners to ensure that the entire mineral asset is appropriately accounted for in any potential transfer. Finally, we work alongside the intended recipient to ensure that they have the knowledge and support they need to maximize the value of their new mineral portfolio.