If you are interested in divesting all or part of your mineral interests, contact our mineral acquisitions team today so that we can provide you with a customizable solution that makes financial sense for you. At Endeavor Acquisitions, we are proud of our reputation as a leading purchaser of mineral and royalty interests. To help you through the sales process, we have compiled a list of frequently asked questions received from our past and current clients.
How long does the evaluation process take?
Depending on your specific interests, location and number of tracts involved, the evaluation process can take anywhere from a couple of hours to several days. Our team of experienced professionals can provide you with a more accurate time frame to perform our evaluation once we have obtained copies of the necessary information detailed below.
Is there anything I can do to help expedite closing?
In order to properly evaluate your interests we will need copies of the following:
For Producing interests (already generating royalty revenue):
- Copies of your production check details from the last three to six months for each operator paying royalty revenue; and
- Copy of your current Oil and Gas Lease(s).
For non-producing interests:
- Copy of your Warranty Deed, Mineral Deed, or Source Document;
- Copy of your current Oil & Gas Lease; and
- Any information you have on any encumbrances that might have an affect on our acquisition of your interests (ie mortgages, liens etc.)
Do I qualify for 1031 exchange?
A 1031 exchange is an excellent way to defer your capital gains taxes. While we work with 1031 exchanges often, it would be advantageous for you to consult with your tax professional or CPA for further guidance.
How do I request an offer?
Call us directly or visit our Request an Offer page to submit a formal request. Once you have filled out and provided us with all of the appropriate information, simply submit your form and one of our acquisition specialists will contact you within two business days.
What happens after I sign the Purchase and Sale Agreement?
Once we have received originals of all properly executed purchase documents, we will commence with our due diligence and confirming title to the properties involved. In order to complete our due diligence, Endeavor, at its sole expense, sends a qualified and/or certified petroleum landman or title attorney to the county and state where the property is located, to run complete title from sovereignty of the soil to present day. While this is a time intensive and costly process, it is typically necessary in order to verify title and confirm your ownership interest in the property(ies) involved. Upon successful completion of our due diligence, we will move forward with closing.
What happens at closing?
At closing, you will be immediately paid in full based upon the mutually agreed upon terms in the Purchase and Sale Agreement. Closing payments are always made in the form of certified funds.
Are there any costs that I will be responsible for?
Not typically. We generally cover all costs from conception to completion of the acquisition process.
What methods of payment are used at closing?
We can provide you with an electronic wire transfer, check or certified check as payment for the properties being acquired.
Am I obligated to sell my interest if I receive an offer?
No, there is never any obligation on your part to sell, unless you contractually agree to do so by entering into a Purchase and Sale Agreement with Endeavor.
Why am I no longer receiving monthly royalty checks?
There are multiple reasons as to why you are no longer receiving royalties. The most common reason is that the producing well in which you own interests may be shut in or possibly abandoned. This generally happens when it no longer makes economic sense for an operator to continue to spend the large sums of money on a daily basis that it generally takes to keep a well producing.
Do my mineral and royalty interests gain value overtime?
Interests in oil and gas are depleting assets and all oil and gas wells decline in production at various rates over time.
Will I have to pay income taxes if I sell to Endeavor and how much?
In most cases, the only tax that you will be responsible for paying is your federal income tax. Depending on your location, you may also be subject to pay state income tax. Please consult your tax advisor for information concerning your specific situation.
How do you determine the value of my mineral rights?
Every property is different. Our offers vary based on the location, and can depend on any of the following factors:
Location of Your Interests
Commodity Prices on NYME (New York Mercantile Exchange)
Contact one of our acquisition experts today to find out more about selling your mineral rights to Endeavor. Our mineral acquisitions team offers guidance for mineral owners like you throughout the entire process of selling your interests.