We show our work. No black box.
We don't hand you a royalty portfolio without showing the math. Every package comes with a one-page worksheet you can take to your CPA. Here is exactly how we value it, broken into six inputs.
Reserve assumptions.
We model your well or unit’s remaining production using a combination of operator-reported volumes, public state filings, and our internal type-curve library. For unconventional plays we model both the initial-production rate and the b-factor that governs decline.
Recent comparable sales.
Actual closed transactions in your basin and county over the past 18 months. We do not use basin-wide averages pulled from public reports — those mask county-level variance that can move a fair offer by 30%.
Decline curve.
Tight-oil and tight-gas wells follow predictable decline patterns: aggressive early loss (Year 1 down 60–85%) flattening into a long terminal tail. We model your specific well using a hyperbolic decline with a b-factor calibrated to the basin and operator.
Discount rate.
The discount rate translates future cash flows into present value. For typical mineral acquisitions we apply 10–15%, adjusted for basin risk, operator credit, commodity strip, and time-to-payout. The specific rate used for your interest is shown on the worksheet.
Sensitivities.
Three scenarios on every worksheet: what the offer becomes if oil drops $10/bbl, if gas drops $0.50/Mcf, or if production declines 10% faster than modeled. Lets you and your CPA stress-test the number before deciding.
The written worksheet.
Everything above lands on a single page, plain English, with the math broken out so you can audit it. Reserve estimate, comp range, discount rate, sensitivity scenarios, and the resulting valuation range — the worksheet that comes with every portfolio you review.
What lands in your inbox.
An anonymized example of the one-page worksheet we email after every valuation. Real format, illustrative numbers — your actual worksheet shows your wells, your operators, your comps.
Sample worksheet · every client receives a one-page breakdown like this alongside their offer.