below is a step-by-step guide to the selling process
1. Contact us Regarding Offer
Whether you’ve already received an offer from us or you would like to request one, give us a call at 1 (877) 714-8773 or (281) 656-5488 or email us at email@example.com. One of our knowledgeable Acquisition Managers will be able to guide you through the next steps of the Selling Process
2. Accept Offer
If you have received an offer from us and would like to accept it, simply sign the Offer Letter and drop it in the mail. Once we receive the executed Offer Letter, we will immediately get to work on our title research in order to close the transaction and get you paid.
3. Receive Payment
Principle Energy prides itself on having never made an offer without having the money in our account to pay for it. There is no raising money or flipping deals when working with us. Once we complete and approve our title research, we will move forward with closing and you will immediately receive payment for the transaction.
Only you can determine and make the best decision for you and your family. Our job is to advise you by answering all of your questions so that you are able to make an informed decision. We strongly believe that any landowner who is well-educated on mineral rights and the associated risks of the Oil & Gas industry would realize the benefits of selling at least a portion of their mineral or royalty interest. This is one of the main reasons that we have purchased thousands of mineral acres from Individuals (including Petroleum Engineers and Geologists) and Companies (including several Oil Companies and Energy Investment Firms) alike. Our process of valuing minerals and presenting a true and fair offer is the same for all mineral and royalty owners. When you receive an offer from Principle Energy, you can be confident that you are receiving our best offer based on a true and accurate valuation of your mineral or royalty interest.
Some of the most common advantages to selling all or a portion of your mineral or royalty interest include the following:
1. Reduce Risk
As evidenced by history, the Oil & Gas business is inherently risky. Common risks include extreme fluctuations in energy prices, frac bans, environmental regulations, dry holes, minimally producing wells and permitted wells never being drilled. Any of these common risks could significantly reduce the value of your mineral or royalty interest. By selling your mineral or royalty interest, you eliminate these risks.
2. Guarantee a Lump Sum Payment
When selling your mineral or royalty interest you are transferring all of the associated risks described above to the purchaser and your financial future is no longer dependent upon the Oil Company or how political tensions in the Middle East are affecting oil prices. Ultimately, selling your mineral or royalty interests guarantees money to establish financial security, enabling you to invest for retirement, pay off debts, start a business or to simply enjoy more time with your friends and family.
3. Tax Advantage
If you have owned your mineral or royalty interest for more than a year, the sale of your mineral or royalty interest will be taxed as a Capital Gain. Alternatively, royalty payments are taxed as Ordinary Income. This alone has been a huge money saver for the Landowners who have sold their mineral or royalty interest to us. In fact, many of them have saved over 50% on their tax bill. Please consult with your tax advisor to see how this may apply to your personal situation.
4. Eliminate Paperwork
No one enjoys the hassle of additional paperwork. Division orders and other paperwork from operators are a great source of confusion and often pile up on desks and kitchen countertops. You may be in your golden years and want to enjoy your life, without having to deal with the hassles associated with paperwork from operators and royalty checks.
5. Establish Financial Stability
Dependence upon royalty checks as a steady source of income invites unnecessary risks and uncertainties for those individuals seeking steady and reliable income streams during retirement. Selling your mineral or royalty interest to Principle Energy provides the immediate cash necessary for you to instead invest in financial vehicles with more stable cash flows – i.e. stocks, bonds, and annuities - that may better match your financial goals.
6. Leave a Legacy for Your Heirs
When it comes to distributing an estate between the heirs, distributing cash is a far simpler and less stressful process than distributing mineral and royalty interest between the surviving heirs. Often, when the mineral or royalty interest is divided by the heirs it becomes so fractionalized that it has very little value.
7. The Company’s Reputation
Principle Energy truly cares about the landowners who work with us and we put forth every effort to educate them on their mineral and royalty interest so that they are able to make an informed decision that is best for them and their family. Transparency is crucial in any transaction and we guarantee that you will be kept up-to-speed throughout the entire process. Our philosophy is that we treat our landowners the same way that we would want someone to treat our parents or grandparents.