Royalty Checks Decreasing
Noticed your royalty check decreasing recently? You’re not alone! The value of oil and gas has been falling for months on end and it doesn’t appear that it will end soon. If you receive royalty checks in Texas, you may have already started to see this affect the amount of your royalty checks. Curious about why this is happening and what you can do about it? Keep reading!
Why your royalty checks are decreasing
The main reason your royalty checks are decreasing is because oil and gas prices are falling. What happens is that the oil and gas being extracted from the ground is now worth less money. The operator (who extracts the oil and gas) is now being paid less money for selling the oil and gas to refineries. When this happens, this trickles down royalty owners like yourself. The checks you were previously getting could have gone done by as much as 50% based on the decline in oil prices recently.
As a royalty owner, you don’t have a lot of options when it comes to the price of oil and gas. If the price of oil continue to stay down, you may see reduced royalty checks for the foreseeable future. If you rely on that money each month to help you cover expenses and stay afloat, the lower royalty checks can have a big impact on your life. The reduced checks could last for a few months or they could last for a few years. No one is really sure where prices will head but a lot of people are predicting that we aren’t at the bottom of oil prices yet.
What you can do
One of the difficult things about owning royalties is never knowing how much you’ll receive each month. If you need that royalty income, it makes life difficult. However, one option you could consider is selling royalties in Texas. When you sell your royalties, you will get a guaranteed lump sum amount for your royalties. You’ll no longer have to wonder how much you’ll be getting on your next check and you won’t have to deal with the hassle of year end taxes either.
Many mineral owners make the decision to sell royalties because they don’t like the royalty checks decreasing each month. Even today, your royalty checks could continue to go down in value. If you want to ensure that amount your royalties are worth, fill out the form below. We represent a huge network of royalty buyers who pay top dollar (even with down oil prices), and you will get multiple offers very quickly! The best part is that there’s no obligation! Simply fill out the form below and we’ll be in touch to get you some offers shortly.