Thanksgiving was always a memorable time in my family. Scattered across the country, it was a time in which we could all get together to celebrate the end of the season and spend time in each other’s presence without any distractions. We also saw it as a time for the family to sit together and go over estate planning. Each year, we would dedicate an hour to discussing changes over the past year and anything pertinent to investments, property, taxes, and our family estate.
While some people might find that morbid, the reality is, it gave great calmness to the situation of passing on a legacy when it mattered. There was a clear understanding of the estate, how we should manage it, and no surprises. For many families, the opposite is true. Estate planning or family assets are not discussed and almost held in secret. This causes great concern and issues for the next generation, as they have no real understanding or expectation about the family’s royalty interests.
Minerals and royalties are often ignored or not discussed due to lack of understanding and complexity of the assets. Unlike physical property which is tangible, or financial investments which can be viewed on a screen, royalties are an enigma. To some, minerals are “mailbox money” to others, the sentiment that “we will never sell, so just accept what is being given.” Minerals are just another real property asset, like real estate, and can be discussed and understood with the assistance of Enverus.
For any investment or asset owned the main questions we like to know are:
- What do we own?
- What is the expected income into the future?
- What is the asset worth?
- Is there any activity or nearby event that will increase our income?
For minerals, all of this can be answered using Enverus MiQ, one of the newest mineral management platforms for royalty owners. Enverus will automatically match the wells on your statement to their associated API10 (unique identifier) numbers. You will be able to see where your wells are on a map, each well’s production, and be notified of any new wells being drilled using Enverus “GPS enabled Rigs” data. All of this on your mobile, tablet, or desktop device. Imagine being able to provide insights and context to your family “above and beyond” royalty statements!
With MiQ+, we provide an analysis on expected cashflow into the future and the present value of producing assets today. This allows you to “level set” with your family, demonstrating that oil and gas wells are a declining asset and how royalty checks are dependent upon new wells being drilled and current and future commodity prices. Eliminate second guessing or worrying about whether the checks will stop coming. Gain clarity on your whole portfolio and its value to the family.
More than anything, most owners want to feel empowered, knowing they are being paid correctly and on time
. Educating yourself about oil and gas assets may seem daunting but our Learning Center and Training Hub provide click-by-click solutions and insights from our industry experts, so you can better understand this asset class.
What could be better for Thanksgiving than giving thanks for all things in our lives? Family, friends, health, and the benefits that being a royalty owner create. Take the guess work out of providing your family with insights into the estate and be empowered to manage your assets.