Finding Lost Mineral Income: 5 things you need to know
Whitepaper by Enverus
25 February 2021
In a crowded room of mineral owners, if someone mentions the word “underpayment” everyone is likely to turn to the only operator in the room. It’s easy to assume that oil & gas operating companies are the culprit when it comes to incorrect and non-payment on mineral interests, however, such situations are almost always an oversight and symptomatic of the business environment. The oil & gas industry is complex with labyrinthine ownership structures and cumbersome production accounting. Operators are obliged to not only manage the tough tasks of finding and extracting oil & gas, they must also manage payments and expectations of thousands of interest owners. Things fall through the cracks and with a few exceptional cases of misconduct, underpayments are a result of a complicated system stressed to the max. It’s important to note that most operators are also non-op interest owners, putting them in the same boat with oil & gas investors.
In this report, we’re going to take a deep dive into the top 5 underpayments oil & gas investors struggle with every day. What’s more, non-ops and operating companies alike can both benefit from the risk assessments and solutions offered in the following sections.
DOWNLOAD THE ENVERUS WHITEPAPER
More about Enverus
Today, Enverus is the largest SaaS company solely dedicated to the largest market in the world – Energy. Enverus empowers companies to transform the traditional way of making decisions by accessing world-class intellectual capital, innovative cloud technology and collaborative partnerships. Enverus provides value to customers across the entire energy mix with more than 1,400 professionals dedicated to the evolution of the industry and striving to delivering reliable, cost-effective energy to the world. Visit the website here.
Ben Heinzelmann, President of Energy Domain came onto the podcast to walk us through the evolution of the Minerals Management space and how his team has continued adding value to their minerals clients through the launch of Energy Domain and Energy Freelance. Listen here.
Charlie Schufeldt, CEO of Elk Range Royalties, came onto the podcast to discuss a recent transaction they made in the Permian, which consisted of 2,000+ NRAs in the core of the Midland & Delaware Basins.. Listen here.
David Garofalo, Chairman & CEO, Gold Royalty Corp., came onto the podcast to walk us through his background in the precious metals space and some of the trends he has seen with precious metals royalty companies over the last few decades. Listen here.
Steve Hendrickson, President of Ralph E. Davis Associates, came onto the podcast to discuss his 40+ year career in Oil & Gas and how he got involved in the Minerals & MLP space in the mid-2000s working for Montierra Minerals & Production LP. Listen here.
Chris Atherton, Chief Executive Officer of EnergyNet, came onto the podcast to discuss the evolution and trends in the A&D market over the last 20 years and how their team has leveraged proprietary market comps to achieve high rates. Listen here.
Darin Zanovich, President and CEO of Mesa Minerals Partners II, returns to the podcast to discuss their teams recent exit to Franco Nevada in December 2020, their new partnership with NGP in May 2021. Listen here.
Jason Hoisager, President, Mustang Ridge Minerals (Former President of Rock Ridge Royalty) joins us to talk about the Rock Ridge Royalty story and what his team has planned in the future for Mustang Ridge Minerals. Listen here.
Podcast: Ashley Gilmore, CEO of Tracts, Whitney Wickes, COO of Rocking WW Minerals & Adam Olivier, BD Manager of OneMap Minerals
Ashley Gilmore, Whitney Wickes and Adam Olivier join us to talk about the efficiency gains realized by leveraging Tracts to automate the chaining of title.
Ben Barresi, President and James Sauseda, Vice President of Engineering at Cosmos Energy joins us to talk about the importance of building relationships and trust with minerals owners over the long-term. Listen here.
Andrew Rosell, Shareholder at Winstead joins us as a part of our new mini series around “Investor Due Diligence for Minerals & Royalties Funds” where he walks us through the different kinds of fund structures, fund provisions and management fee structures. Listen here.
Kim Garber, CEO at CORE-CCO joins us as a part of our new mini series around “Investor Due Diligence for Minerals & Royalties Funds” where she discusses the different registration requirements and exemptions when raising/operating a private minerals fund. Listen here.
Reid Vidrine, Head of Energy at Standish Management joins us as a part of our new mini series around “Investor Due Diligence for Minerals & Royalties Funds” where he walks us through the roles and responsibilities of a 3rd Party Fund Administrator. Listen here.
Roger Crabb, Partner, Scheef & Stone joins us as a part of our new mini series around “Investor Due Diligence for Minerals & Royalties Funds” where he walks us through the various aspects of raising funds as well. Listen here.
In this edition of our Minerals and Royalties Webinar we discussed Overriding Royalty Interest and Carve-outs.
Chris Phillips, CEO joins us from Phillips Energy to discuss the early days of the minerals space and how it has evolved over time. Listen Here.
David Spyker joins us from Freehold Royalties where he discusses the capital stack of their shareholder base, including their major shareholder CN Investment Division (CNID), which is a leading pension in Canada. Listen here.
Chad Stephens joins us from PHX Minerals, a publicly traded minerals & royalties company on the NYSE. Chad walks us through his 40+ years of experience in the Upstream space. Listen Here.
Tyler Leon, Trent Leon and William Malloy at Tilden Capital discuss their track record in the Permian Basin and how Interest Rates and Taxes (Capital Gains + Ordinary Income) affect minerals transactions. Listen here.
Stephen Claybourn, OFS Entreprenuer and Host of the BlackGold Podcast joins us to discuss trends in the OFS space and how they parlay into minerals buying. Listen here.
On this episode of the Minerals & Royalties Podcast King Crow, Partner of Flatland Minerals discusses his 40+ years of experience in finance and sheds some light why minerals and royalties are such an attractive asset class to invest in. Listen here.
JD Mann, President & CEO, Warrior Oil & Gas joins us to discuss the different ventures he has started on the Land Services and Minerals front over the years, including his current company Warrior Oil & Gas. Listen Here.
Troy Eckard, CEO of Eckard Enterprises, LLC explains why he pivoted into minerals in 2018 after 30+ years in upstream exploration. Listen Here.
Logan Heffner joins us from Rye Ridge Resources, a Denver-based minerals and royalties aggregator focused on the Uinta Basin. Listen Here.
As part of the Minerals & Royalties webinar series we will be discussing Tech Innovation in the Minerals & Royalties Space. Register here to join the webinar debate (9 March 2021)
As part of the Minerals & Royalties webinar series, Tim Pawul, President, Minerals & Royalties Council fielded questions live from minerals executives in a fun and interactive new format.
As part of the Minerals & Royalties webinar series we discussed Fundraising in the Minerals & Royalties Space. Watch the discussion, now available on demand.
Brad Rich & Tanner Kyle join us from Aunix Energy, a private minerals & royalties aggregator, to discuss the dynamics of minerals buying in Appalachia. Listen here.
We recently sat down with Ryan Strawn, President of Appalachian Mineral Partners to tell us more about the dynamics of minerals buying in Appalachia. Listen here.
Yoann Hispa & Craig Kaiser, Co-founders of LandGate join the Minerals & Royalties Podcast. Yoann and Craig tell us more about the technology driven marketplace that they have developed for buyers and sellers.
Troy Tittlemier, CEO, MagmaChem Research Institute joins the Minerals & Royalties Podcast. Troy tell us more about why he thinks MagmaChem can change the way operators explore & produce O&G. Listen here.
As part of the Minerals & Royalties webinar series we will be debating family office investment strategies. Register here to join the webinar debate (19 Jan 2021)
Is there a place for private equity in the minerals & royalties space? Many pundits in the industry don’t think there is. Watch our webinar debate on demand to learn more
On this episode of the Royalties & Minerals Podcast, we hear from Collin Lensing, COO & General Counsel, Vendera Resources . Listen here
On-Demand: Buyside Strategies in the Minerals & Royalties Space Amidst COVID-19 and the Oil price War
Everyone in the minerals & royalties space is looking to get a large institution to acquire their portfolio but with COVID-19 and the Oil Price War, many buyers have been forced to shift their strategies...
Travis Low, Matt Ritter, and Jim Shuss join us from Arrowhead Energy Partners to chat about the Arrowhead story and why they decided to launch amidst COVID-19 and the Oil Price War.
On October 13th, 2020 a group of leading minerals & royalties Executives gathered to debate the pros & cons of building minerals & royalties portfolios around specialization vs diversification
Jimmy Murchison – CEO, Hatch Resources joins the OGC Podcast to discuss the role of debt financing and hedging in the minerals space . Listen here
As more and more capital has entered into the minerals & royalties space over the past 5-6 years, there has been a growing debate around how investors will exit their money. Should companies build up scale and try to go public or is an exit to an end-buyer the best route?
Podcast: Matt Sands, Managing Member of Silverheels Investments and Host of The Mineral Rights PodCast
Matt Sands, Managing Member of Silverheels Investments and Host of The Mineral Rights PodCast joins the Minerals & Royalties Podcast to discuss how he got into the minerals space back in 2015 & more . Listen here
Josh Adler, CEO, Sourcewater joins the Minerals & Royalties Podcast to discuss how they are predicting development activity in the Permian Basin. Listen here
Ryan Childs & Abhishek Kumar, Principals of Production Lending LLC join us to discuss some of the preferred equity and debt solutions that their team is providing to the sub $15mm market for E&P, Non-Op, and Minerals & Royalties companies.. Listen here.
On this episode of the Royalties & Minerals Podcast, we hear from our panel of experts on Minerals & Royalties Aggregation Strategies. Listen here
After COVID-19 and the Oil Price War disrupted US Shale, many are now seeing advocating the benefits of building a diversified strategy again.
On this episode of the Royalties & Minerals Podcast, Mackie talks about OneMap’s patient capital enabling them to take a longer-term view to mineral ownership which allows them to focus on acquiring undeveloped minerals in the Permian.
On this episode of the Royalties & Minerals Podcast, Scott breaks down the dynamics in today’s current market and explains how Noble Royalties is well equipped to provide solutions for all of the different stakeholders in the minerals value chain
On this episode of the Royalties & Minerals Podcast Armand Paradis & Jeremy Gottlieb, Co-Founders, Inside Petroleum discuss their journey to starting Inside Petroleum where they are implementing all of the features O&G Executives need to operate their companies in today’s fast paced environment.
How do the ground game dynamics differ from basin to basin in today’s market? Is the bid-ask-spread the same on the ground vs corporate transactions / brokered packages? Is the bid-ask-spread the same for buying PDP vs undeveloped minerals?
On this episode of the Royalties & Minerals Podcast, Jackie Haney and Ahna Mee join us from UnionRock Partners to talk about the strategic rationale for having a blended NonOp and Royalties strategy and more.
On this episode of the Royalties & Minerals Podcast, Preston Page talks about his team’s data driven approach has led them to be more successful in smaller & more complex corporate to corporate royalty & ORRI transactions
On this episode of the Royalties & Minerals Podcast Brandon O’Gara talks about how Echo has leverage an “in-house approach” to scale up the ground game and build a material portfolio that is attractive to their institutional investors
On this episode of the Royalties & Minerals Podcast Daniel Herz explains the similarities between the minerals & royalties space and of the early days of the MLP space in the 2000s..
On this episode of the Royalties & Minerals Podcast Oscar Torres talks about his teams value driven approach to acquisitions and how their team goes about sourcing opportunities.
On this episode of the Royalties & Minerals Podcast Robert Hefner talks about the Anadarko Basin, stochastic and deterministic modeling and maximizing a minerals portfolio. Listen Here.
Josh Camp shares his insights in this podcast. During the episode, Josh discusses the various ways his team approaches mineral buying in order to de-risk underwriting and formulate an information edge.
Chris Beato shares his insights in this podcast. During the episode, Chris leverages his 35+ years experience in the industry to explain why companies need to go back to a “produce out” strategy in order to deliver consistent returns for their investors.
Jace Graham shares his insights in this podcast. During the episode, Jace talks about his team’s approach to the ground game and how they have leveraged some of the best practices and technologies used in real estate investing in order to more effectively identify motivated sellers.
KC Stalling shares his insights in this podcast. During the episode, KC talks about the ups & downs of investing in the minerals space over the past three decades, the lessons learned, and how their long-standing relationships with their industry peers and investor base have been a cornerstone of their success over the years.
Matt Wieszczy shares his insights in this podcast. During the episode, Matt explains some of the advantages that smaller aggregators like Par City Holdings have in the minerals space. He also walks through why his team is bullish on Appalachia gas and why futures gas pricing is looking up amidst COVID-19 and the oil price war.
Nick Varel shares his insights in this podcast. During the episode, Nick talks about the resiliency of the North American oil business and why minerals & royalties will continue attracting new types of investors and end-buyers in the upcoming years.
Josh Lorenz shares his insights in this podcast. During the episode, Josh explains why now is a great time for family offices and high net worth individuals with $25-$100mm to invest to acquire minerals & royalties portfolios at attractive discounts from PE backed companies who will need to sell their assets over the next few years in order to begin returning capital to their investors.
Cutler Gist shares his insights in this podcast. During our conversation, Cutler explains the fundamentals of using a 1031 Exchange and why they are such an attractive option for real estate investors who want to put money to work in the minerals and royalties space.
Adam Waterous shares his insights in this podcast. Adam discusses his theory of “Peak Permian”, which describes current US production levels as unsustainable and grossly uneconomic. Adam explains how the emergence of unconventional fracking technology has caused a structural shift in the oil & gas industry..
Derren Geiger shares his insights in this podcast. Derren discusses how Cornerstone’s strategy is driven by the macro and geopolitical forces in the market. Derren also talks about how ESG policies, COVID-19, and the Oil Price War are affecting today’s market.
Paden McKinney & Griffin Haby III, Co-Founders, Mountain Lion Oil & Gas share their insights in this podcast. Griffin & Paden discuss their strategy and how they have developed a niche around gathering ORRIs over State & Federal leases in New Mexico.
Charlie Matter, CEO, CASE Energy Partners shares his insights in this podcast. Charlie discusses the impact that COVID-19 and the Oil Price War are having on A&D activity and how larger buyers will need to get creative in order to continue deploying capital at scale..
Will Cullen, Vice President, LongPoint Minerals shares his insights in this podcast. Will gives some insight on why many LPs still struggle to make direct investments, the value creation that comes from active portfolio management, and why development timing is such a critical factor..
Marc Zimmermann, President & COO, Royalty Clearinghouse shares his insights in this podcast. Over a 20 year history they have completed 6,000+ transactions with an emphasis of long-term relationship building. Marc is well placed to discuss the current state of play in the space.
Darin Zanovich of Mesa Minerals Partners shares his insights in this podcast. Darin talks about why this is an opportune time for long term investors that are yield driven to enter the space and capture an arbitrage before the public markets mature and the opportunity gap closes.
In the first of our Mineral and Royalties series Viking Minerals, Ran Oliver describes the parallels between real estate and oil and gas minerals and royalties investing.