Mineral Rights Value in New Mexico
If you own oil and gas mineral rights in New Mexico, particularly in Lea or Eddy County, this guide will help you understand how to find your mineral rights value. Lea and Eddy Counties are among the top producing counties in the prolific Permian Basin, which means your interests could be worth a lot.
There’s no exact formula for calculating mineral rights value. But when you understand how buyers evaluate New Mexico minerals, you can get a realistic range. This guide will help you understand how value is estimated in Lea and Eddy so you can make informed decisions.
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Garrett Phelan
CEO of US Mineral Exchange with over 27 years of experience in the oil and gas industry. For nearly two decades, he has helped individuals, families, trusts, and non-profits navigate the complexities of mineral and royalty rights to achieve the highest sale prices.
Widely recognized as an industry expert, with an unwavering commitment to a client-first philosophy and extensive industry knowledge, he has been featured in Hart Energy, Yahoo Finance, and the Permian Basin Petroleum Association magazine.
Estimate Mineral Rights Value in New Mexico
Your first question is probably how to know what a reasonable price is for your minerals. This guide helps you understand what to expect. The exact value only comes when you actually sell, but a good estimate helps you separate the good offers from the bad.
Producing Mineral Rights Value in New Mexico
The mineral rights value for producing oil and gas mineral interests, especially in Lea and Eddy Counties, has seen a significant rise in offer prices over the past year. While the general guideline of 4 to 6 years of current income may be a fair indicator of how you might value your interests, there are many other factors that can add significant value. It is important to fully understand your interests and the potential for further drilling before agreeing to sell.
To estimate mineral rights value in New Mexico, gather your last three months of check stubs. Find the average monthly income you received, then plug that into the calculator below.
Keep in mind this estimate is based on current royalty income only. If more wells can be drilled on your property, you may get offers significantly higher than this estimate. Current income is only one part of the picture.
Royalty Calculator
Mineral Rights Value in Eddy County New Mexico
If you own mineral rights or royalties in Eddy County, New Mexico and are considering selling, you are in a strong position. Mineral rights value in Eddy County is higher than it has been in years, which means your interests could be worth more money than in years past. Getting top value depends on marketing the property correctly.
Mineral Rights Value in Lea County New Mexico
Lea County, New Mexico is part of one of the most productive oil counties in the country. Producing mineral rights there can command strong value. As in Eddy, the amount you ultimately receive depends heavily on how the property is marketed to buyers.
What Affects Mineral Rights Value in New Mexico?
Mineral rights value in New Mexico depends on more than current royalty income. Buyers also look at the location of the minerals, the operator, existing production, future drilling potential, lease terms, royalty rate, nearby well activity, and oil and gas prices.
Producing minerals are usually easier to estimate because there is actual royalty income to review. A common starting point is several years of average royalty income, but that estimate can change significantly if additional wells are expected. Minerals with future drilling potential may sell for more than current income suggests.
Leased but non-producing minerals are different. A lease shows that an operator may see future potential, but it does not guarantee drilling. Buyers will look at the lease bonus, the operator, nearby permits, nearby production, and whether drilling activity is moving toward the area.
Non-producing and unleased minerals are usually harder to value. In some parts of New Mexico, especially outside the most active areas, they may have limited market value unless there is nearby leasing, permitting, or production.
This is why two mineral owners in New Mexico can receive very different offers, even when both own minerals in the same county. Small differences in location, royalty rate, operator activity, and future drilling expectations can create large differences in value.
Ready to Sell?
If you are trying to understand what your minerals are worth before selling, the valuation information above is your starting point. If you are ready to compare offers or want to understand the selling process, see our guide on how to sell mineral rights in New Mexico, which covers buyer competition, common pitfalls, and how to reach enough qualified buyers to get the best price.
Contact US Mineral Exchange
If you have questions about your specific property, please contact us and we’ll walk you through it.
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Common Questions
The more information you can provide about your property the better! We can give you a better idea about the value of selling mineral rights if you provide more information. The most important thing we need is for you to answer the questions and provide your state and county.
If you have the required documents to list, providing those is extremely helpful!
Absolutely not! When you inquire at US Mineral Exchange we will not be putting any pressure on you to sell. We will help answer any questions you have whether you are interested in selling or not.
At US Mineral Exchange, we take privacy very seriously. We will NEVER sell your information or use it without your consent. When you send us documentation or tell us about your property, that information does not go outside our company without your consent. Even when you list a property for sale on our website, we strictly control who has access to the information about your listing so that only legitimate buyers will be able to see property details.
Many mineral owners make the mistake of getting an offer and quickly selling. They then accept an offer far below market value because they felt pressure to sell. There is nearly always a better price available.
Imagine you were selling a home. Would you get the best price from a random person who walks up and makes you an offer? No way! Now imagine you list the home on the MLS where thousands of potential buyers know your house is for sale. The key to getting the best price is competition. Our guide to selling mineral rights explains everything.
The reason that so many mineral owners decide to sell mineral rights at US Mineral Exchange is access to our large network of mineral rights buyers. Our goal is to help you get top dollar for selling mineral rights by getting your property in front of a huge audience of buyers. This allows buyers to compete against one another which ensures you get fair market value for selling mineral rights.
There are absolutely no cost to list your property. When you locate a buyer by listing your property with us, we are paid a commission directly by the buyers closing agent. This means you never have any out of pocket expenses ever. We only get paid if we can get you a better price than the current offer you have in hand.
FREE GUIDE
Download our free mineral rights guide now! Learn more about your mineral rights.