Investment Strategy
FLEXIBILITY AND CONTROL One of the surprising advantages of mineral rights is the level of flexibility they offer. When you own them, you have a choice: Do you lease them, sell them outright, or hold on to them for a better opportunity down the line? This flexibility puts the power in your hands. If market conditions aren’t favorable, you can wait. If a new discovery makes your minerals more valuable, you can negotiate better terms. And if you need immediate liquidity, selling your mineral rights might provide a quick infusion of cash. The decision is ultimately up to you—this level of control is rare with other types of property or assets.
royalties or creating a legacy for your family, mineral rights give you a way to tap into the earth’s hidden wealth. If you want to learn more about mineral rights, reach out to the experts at Eckard Enterprises by calling (800) 527-8895 or emailing info@eckardenterprises.com. Eckard Enterprises, LLC is a family- owned oil and gas company that has been helping accredited, high-net-worth individuals acquire direct ownership of mineral rights for nearly 40 years. We have a fully equipped, experienced team of geologists, landmen, and engineers who specialize in helping people learn more about mineral rights, working interest, and other royalty-generating assets in the energy space.
For example, determining the exact value of your mineral rights can often require expert evaluations, geological surveys, and knowledge of market conditions. Additionally, royalties might fluctuate depending on production levels and commodity prices. There’s also the potential for disputes if ownership isn’t clear or if the surface and mineral rights have been split among multiple parties. If you’re considering selling or leasing your rights, it’s essential to work with experienced professionals to ensure your interests are protected.
SPONSORED CONTENT Dig Deeper: Unearth the Wealth of Mineral Rights MINERAL RIGHTS OFFER A STAKE IN VALUABLE NATURAL RESOURCES, WITH FINANCIAL UPSIDE, CONTROL, AND THE CHANCE TO BUILD A LASTING LEGACY.
TROY W. ECKARD
W hen you hear the term “mineral rights,” you might picture vast oil fields or mining operations. But mineral rights encompass much more and owning them can be an intriguing aspect of land ownership. Mineral rights grant you ownership of the minerals beneath a piece of land, separate from surface rights. You may not have considered their value before, but once you dive in, you’ll discover they can offer a range of potential benefits to accredited investors. WHAT ARE MINERAL RIGHTS? Mineral rights give you ownership over the natural resources located underground, such as oil, gas, coal, precious metals, or other substances. Depending on the location and type of rights you own, you might control everything from fossil fuels to gravel. You can sell, lease, or separately transfer these rights from the land’s surface. In some cases, you might own the surface and the minerals below; in other cases, you might own just the
minerals. If you hold mineral rights, you’re in a unique position to benefit from the resources without necessarily owning the physical land above.
and production levels, but it can still provide a way to monetize assets that otherwise would remain buried and untapped. You’re essentially allowing professionals to work the land while you enjoy a share of the proceeds. CREATING GENERATIONAL OPPORTUNITIES Owning mineral rights isn’t just about short-term income. It can also play a role in creating long-term opportunities. Mineral rights are considered an asset, and like other types of property, they can be passed down to future generations. If the land beneath holds valuable resources, it could offer financial benefits to your heirs long after you’re gone. Some families choose to keep mineral rights in trust to ensure they remain intact and are managed effectively for years to come. Others might sell or lease them at strategic times to take advantage of favorable market conditions. Either way, mineral rights are a potentially valuable asset that can be passed down to your heirs.
GETTING STARTED WITH MINERAL RIGHTS
If you already own land, you might want to check whether you also own the mineral rights beneath it. In some cases, mineral rights were severed from surface rights years ago, so ownership may not be clear. A title search or consultation with a specialist can help you determine what rights you hold. Once you understand your rights, consider your goals. Are you looking for an additional income stream? Do you want to preserve the rights for future generations? Or are you simply curious about the potential value? Your answers will guide your next steps. Whether you decide to lease, sell, or hold on to your mineral rights, staying informed and seeking professional advice can help you make the most of this unique asset. Owning mineral rights might not be something you think about every day, but it can provide opportunities that are both tangible and long-lasting. Whether it’s through generating
AN ASSET WITH INTRINSIC VALUE
THE FINANCIAL UPSIDE OF MINERAL RIGHTS
TROY W. ECKARD
Mineral rights are unique because their value is tied to something tangible: the resources beneath the surface. Although the value can fluctuate depending on factors like market demand and technological advances, these rights have intrinsic worth due to the finite nature of many natural resources. As global demand for energy, metals, and other materials continues to grow, owning mineral rights can give you a stake in industries that shape economies worldwide. Even if you don’t directly participate in the extraction process, you have an asset tied to valuable commodities. UNDERSTANDING THE RISKS AND CHALLENGES Mineral rights can offer many benefits, but they also come with challenges.
Owning mineral rights can open pathways for revenue without requiring day-to-day management on your part. Mineral rights can be leased to an exploration company that has the expertise, equipment, and resources to extract those minerals. When you lease your rights, you typically receive a bonus payment upfront. This is essentially a fee the company pays you for the opportunity to explore and extract resources. On top of that, if they successfully extract and sell the minerals, you could earn royalties, which are usually a percentage of the revenue generated from the sale of the extracted resources. Imagine having an additional income stream without needing to drill a single hole yourself. The revenue from royalties can fluctuate based on market conditions
Troy W. Eckard uses his four decades of oil and gas expertise to lead Eckard Enterprises, LLC in making direct ownership of oil and gas assets possible for high-net-worth investors. Since 2019, his company has secured $850 million in capital across more than 90 projects and has acquired mineral rights, working interests, and the second-largest natural gas pipeline in the Gulf of Mexico. Today, Eckard owns interests in more than 7,000 wells and has distributed $110 million in cash flow to investors during the last four years.
32 | think realty magazine :: january - february 2025
thinkrealty.com | 33
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