The Exciting World of Subsurface Real Estate

We will level with you, treat you like an adult, and tell you what others will not.

For example, barring an extreme circumstance, do NOT sell your minerals right now! Mineral acquisition companies, including ours, are not going to pay you for any upside (i.e. future wells); we are going to only pay you on PDP (i.e. producing wells).

This is not because firms like ours are greedy, it’s because we will almost certainly lose money if we pay for wells that won’t be drilled in the next decade or more. I get it, trust me. If you wanted to sell but missed the bonanza of 2018 when people were willing to pay for 20 wells per unit, you feel like you missed the boat - and you did. The new world is a PDP world where people are only able to value existing production and existing cash flows. We are willing to pay PV10 - discounting forecasted cash flows at 10% - while some others are trying to steal it for PV 20-30.

COVID-19 exacerbated production issues, too, taking many wells offline and further complicating how firms are able to forecast future production. Thousands of permitted wells will never be drilled and new permits are much riskier than they used to be.

Lastly, decline rates are more severe than you appreciate. It’s simply not a good time to sell, but DO be ready for when decent offers come back. The days of insane prices (e.g. $20-40,000 per acre) are gone, and hope is not a strategy.

If you are, however, in the circumstance of wanting to sell, we truly hope you’ll consider giving us a call. Hefner Energy is a top-10 purchaser of minerals and royalties in the state since 2000 and (foolishly) has paid as much as $40,500 per acre (yeah, we lost our butts on that one), while closing more than 180 deals and never backing out on a single contract (absent a single aberration which might qualify). We are confident nobody will treat you better or be more helpful to you in the process. Regardless of if you choose to do business with us, we will still help you find what’s right for you.

Don’t take our word for it though, take the word of those who have picked up the phone and called us. Read the testimonials below that speak to us doing exactly what we say we are going to do.