Sell Royalty > Why?

14th April 2012

Sell Royalty > Why?

Here are some of the reasons one might consider selling their oil and gas royalty interests:

  • Estate Liquidation
  • Cash Flow Needs
  • Paperwork/accounting elimination
  • Asset Re-class (Depletable to Non-Depletable)

This last reason to sell your oil and gas interests is that just like any natural resource, your interests deplete with time. Plain and simple, this means your royalty checks ultimately cease and your ultimate asset valuation is zero. Selling your interest and investing in a non-depletable asset class (real estate, securities, certificates of deposits) aids in securing the corpus or principal part of your investment. This is why many professional money managers elect to sell.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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