Permian Mineral Transaction Update

Using Enverus Courthouse, MineraliQ compiled metrics for Permian Basin mineral transactions taking place during the first half of 2020. The following tables offer data on mineral deeds, royalty deeds, and assignments of overriding royalties only. Many companies buy under various aliases, so the counts may not reflect an individual company’s total acquisition count. The larger the company, the fewer deals it generally transacts. This is due to large companies’ typical acquisition strategy of targeting larger owners. Therefore, many will not be represented in our top 10 deal count by buyer.

Table 1: Top 10 total count of courthouse filings by county

^{(1) Burleson is not within the Permian, but was number nine in total count of documents filed.}

Table 2: Top 10 buyers by courthouse filings

Table 3: Top public (or pre-IPO) buyers by courthouse filings

Actual price paid per acre is not provided within courthouse filings. The average price paid per acre for public companies was compiled for MineraliQ users using Enverus Market Research data.

When evaluating offers for your minerals, having metrics such as price per acre and price per flowing barrel are important to ensure you are not being underpaid. Generally, minerals have some component producing and non-producing. Each has value. MineraliQ provides a simple revenue-based valuation on what is producing today. In other words, EBIDTA multiple (as seen in the chart above). Notice that many transactions take place at 8-12x annual cashflow. MineraliQ provides a value of ranges for your current cashflow minerals from 4-12x annual cashflow. The non-producing value of your minerals is harder to determine. It is based on location, operator, and size of your mineral estate. We recommend reaching out to MineraliQ for a professional evaluation if your holdings are substantial to ensure you are not selling your minerals for under a specific multiple. As an owner, you can sell just the cash-flowing portion if you want to maintain the upside of newer wells being drilled; you do not have to sell everything.

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