Why does American Land & Minerals want to buy my mineral and royalty interests?
Minerals and royalties are worth more to our investors than they are to most individuals and institutions. This is because our investors are able to significantly reduce the uncertainty of royalty income. They do this in two ways. First, they do not have all their eggs in one basket. That is to say, they own interests in thousands of wells. So, the risk that one well will unexpectedly go down is offset by the thousands of other wells they own. Second, our investors limit the risk of falling oil and gas prices by trading futures contracts on the New York Mercantile Exchange. In effect, they lock in today’s oil and gas prices by assuring that the shortfalls in royalty income that would result from falling oil and gas prices would be made up in gains on their futures investments. You may have heard of Southwest Airlines’ use of this same financial tool to protect itself from increases in jet fuel prices. The bottom line—our investors are able to limit the risks of holding minerals and r
Related Questions
- Are construction, repair projects funded with QSCBs subject to the Buy American, National Environmental Policy Act, reporting, and whistle-blower requirements?
- Who controls the subsurface water, the surface owner or mineral owner (if indeed the minerals have been severed from the land)?
- How Do You Buy Mineral Rights With A Land Purchase?
