Why Invest in

Oil and Gas Royalties

While oil and gas royalties are not as common an investment vehicle as stocks and bonds may be, they offer unique and highly competitive benefits that can make them attractive to accredited investors.  Royal Mesa Minerals actively manages our mineral and royalty portfolios to help maximize return potential while lowering downside volatility.

Benefits of Investing in Oil and Gas Royalties

  • Reliable Income. Long considered a mailbox investment, royalties are paid first from a well’s pre-expensed production revenue. Royalty owners typically receive 12-25% of cash flow after production taxes have been paid.
  • Long-term Passive Income. Royalty payments are made for as long as an asset produces, which can be upwards of forty years or more in some fields.
  • No Expense and/or Liability. Royalty owners are not subject to capital calls or operator assessments; they are not responsible for any costs associated with the drilling of wells nor costs related to production, transportation, marketing, and/or ongoing maintenance of oil and gas properties. In addition, Royalty owners bear no drilling or operating liabilities.
  • Tax Advantages. Royalty owners enjoy a depletion allowance which waives income taxes on the first 15% of royalty income on an annual basis.
  • Capital Gains Tax Deferral. As like-kind property, oil and gas royalties are eligible for IRC-1031 Exchanges, which provides capital gains tax relief for real estate and energy investors. Click here to learn more.
  • Asset Value Appreciation Potential. The oil and gas industry is currently in an extended pricing downturn, making the entry costs of asset acquisition lower than what has been seen in years. For investors, this equals the potential to enjoy greater upside as pricing stabilizes and/or returns to the higher numbers seen in the recent past. While pricing will continue to fluctuate, many experts agree that today’s lower commodities pricing represents an attractive opportunity to enter or expand one’s position in the energy industry.

Educate yourself on royalty investing…

Download Our Free Investing Guide

Get our FREE E-Guide and discover seven things you may not know about Oil & Gas Royalty ownership, including how royalties can play an important part in a well diversified investment portfolio. Accredited Investors Only.

Are royalties a good fit for your portfolio?

Contact Us for a Complementary Consultation

Our experienced team will discuss your current portfolio and help you determine if investing in royalties makes sense for you.

Our Operator Partnerships Include:

Royal Mesa Oil and Gas Royalties with Texaco & Shell
Royal Mesa Oil Royalties with ExxonMobile & ConocoPhillips
Royal Mesa Oil Royalties with Devon & EOG Resources
Royal Mesa Oil Royalties with Anadarka & Penn Virginia
© Copyright - Royal Mesa Minerals

View Royal Mesa Mineral's Reg D filings with the U.S. Securities and Exchange Commission. There are significant risks associated with investing in oil and gas ventures. The information contain throughout this website is for general purposes only and is not a solicitation to buy or an offer to sell any securities. General information on this site is not intended to be used as individual investment or tax advice. Consult your personal tax advisor concerning the current tax laws and their applicability and effect on your personal tax situation.
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