Free Estimate
A quick, no-signup way to get a rough range, whether your minerals are producing or leased and waiting on a well, using the same rules of thumb buyers rely on. It is a starting point, not a valuation, and it is often lower than what your minerals are actually worth. Here is why.
For producing minerals, the calculator applies a common rule of thumb: a multiple of your annual royalty income, shown as a range of roughly three to six times. For minerals that are leased but not yet producing, there is no income to work from, so it uses a different common rule of thumb, a multiple of the lease bonus, shown as roughly two to four times. Mineral buyers use versions of this same math every day, which is exactly why it is worth understanding. Both are fast gut checks, and both are genuinely useful for that. Neither is a valuation.
The reason is simple. A multiple of current income only values the wells producing today, and a multiple of the lease bonus is really just a proxy for how good a buyer guessed your area was on the day you signed. Neither one accounts for how the wells decline, your lease terms, current prices, or the locations that have not been drilled yet. In active basins, that undeveloped upside is often the largest part of what a tract is worth, and it is the part owners most often hand over for free when they take a buyer's first offer. A real valuation models the producing wells, the remaining drilling locations, offset activity, your lease terms, and reasonable prices. For how that works, see how mineral rights are valued and our mineral rights valuation service.
So treat the number above as a floor to reason from, not the answer. If it is close to an offer you have received, that is a signal the buyer may be paying only for current production and keeping the upside. That is the moment to get a real number.
Common Questions
It depends on your situation. For producing minerals it applies a common rule of thumb, a multiple of your annual royalty income, shown as roughly three to six times. For leased but non-producing minerals it uses a multiple of your lease bonus, shown as roughly two to four times. Both are rough starting points only. Neither accounts for well decline, undeveloped drilling upside, lease terms, or commodity prices, all of which materially affect real value.
No. This is a rough order-of-magnitude range, not a valuation. A real valuation models the specific wells, remaining undeveloped locations, offset activity, lease terms, and price assumptions for your tract. The result of an income multiple can be far from the real number in either direction.
An income multiple only reflects what is producing today. In active basins, a large share of value often sits in locations that have not been drilled yet, which a multiple of current income completely misses. This is the value owners most often leave on the table when they accept a buyer's offer.
Not from income, because there is none yet. Value for non-producing minerals depends on location, nearby permits, and offset drilling activity. The best way to know is a quick look at the acreage, which I am glad to do.
Send over a royalty statement, an offer, or just the county and section, and I'll give you an engineering-based value that accounts for the upside a rule of thumb ignores.
Get a Real Valuation