Diversify your 1031 exchange into oil & gas royalties.
Peregrine sources high-grade portfolios of producing oil and gas royalties that select clients can acquire as part of their 1031 exchange. Royalties not only delivery strong, passive monthly cash flow, but do so without the headaches of tradition real estate ownership — no tenants, no taxes, no insurance, no capital calls. Basically, no surprises.
$250M+ exchanged since 2004 No obligation Response in one business day
$250M+ exchanged since 2004 · Partner-led from first call to close
Yes. Oil and gas royalty interests are treated as real property for 1031 purposes under Rev. Rul. 68-226, 72-117, and 68-331 — so you can exchange real estate, or other qualifying property, into producing royalties and defer capital gains this year. Peregrine sources the royalty portfolio and you acquire it directly into your exchange, then collect monthly income from the operators.
Read the full guideBuilt for exchangers who want more than another building.
Real estate investors, their advisors, and qualified intermediaries come to us when the usual replacement property doesn't fit the goal. Here's who we help most.
Real estate investors.
Selling an investment property into a low-cap-rate market? Exchange into royalties for passive, monthly income — no tenants, no management.
Learn moreExchangers on the clock.
Need replacement property you can identify on day one and close in weeks? Royalties fit comfortably inside the 45/180-day window.
Learn moreAdvisors & intermediaries.
Place clients into a non-correlated, income-producing alternative. We handle sourcing, diligence, and title — you keep the relationship.
Learn moreFour steps, one continuous timeline.
You sell your relinquished property through your own Qualified Intermediary. Peregrine sources and delivers the royalty portfolio you acquire as replacement property — all inside the IRS clock.
-
01
Introduction & education. No obligation
We learn your exchange timeline, target equity, and income goals, then walk through how producing royalties fit — and where they don't — as replacement property.
-
02
Identification.
Our land team builds a diversified royalty portfolio from our inventory — typically interests across many producing wells, operators, and basins — and provides 1031 identification language for your Qualified Intermediary.
-
03
Closing.
You sign a purchase and sale agreement and acquire the royalties directly into your exchange. We coordinate with your QI so the proceeds flow correctly and the deferral is preserved.
-
04
Title & revenue transition.
We record the mineral deeds in your name and transition revenue with the operators. You begin receiving monthly checks or direct deposits, plus 1099s at tax time.
Why investors exchange into royalties.
Producing royalties are real property for 1031 purposes, so they qualify as replacement for any real-estate sale — and they solve problems a second rental or an NNN building can't.
Passive monthly income.
Checks or direct deposits every month from producing wells — no tenants, no leasing, no management.
No capital calls, ever.
Unlike drilling programs and some TIC/DST deals, royalty owners are never billed for drilling or operating costs.
Many wells, many basins.
A portfolio spread across operators, basins, and producing wells — not one building, one tenant, one market.
Depletion tax shield.
The percentage-depletion deduction shields roughly 15% of royalty income from tax each year.
Energy specialists, not a real-estate shop.
Where the royalties come from.
From the Permian to the Appalachian, Peregrine has acquired royalty and mineral interests across eight major U.S. basins, with owners in 30 states from Alaska to Florida.
- Permian
- Bakken
- Eagle Ford
- Marcellus
- Utica
- SCOOP/STACK
- Haynesville
- DJ Basin
