As one of the most active purchasers of minerals, royalties and overriding royalty interests in Louisiana, Two Pearl Energy is the company to discuss a possible transaction with you. Our offers are highly competitive within the industry, and we offer quick turnaround times. Our goal is to provide a smooth and timely transaction. Two Pearl Energy will entertain an acquisition of either all or part of your interest.
At Two Pearl Energy, we understand that mineral owners often struggle with the decision of whether to sell or keep their minerals. Below are a few reasons to consider as you think through this process:
WHY SELL YOUR MINERAL RIGHTS?
LUMP SUM PAYOUT
Whether it is to pay off mortgage, money for retirement, or to pay for a child’s education there are a number of reasons to cash out your minerals.
OIL AND GAS ARE DEPLETING ASSETS
The production from a well eventually decrease, resulting in a lower royalty check to you. For this reason, you can take the cash today by selling your royalty interest. Cash now instead of waiting years to collect monthly royalties.
RETIREMENT
While reducing your risk of exposure, a lump payment when you sell your royalties may significantly supplement your retirement fund.
OTHER INVESTMENT
OPPORTUNITIES
OPPORTUNITIES
Selling your mineral rights to invest the money into other assets that don’t deplete, such as real estate can be a reason.
DIVERSIFYING
YOUR RISK
YOUR RISK
You can invest in a stock portfolio or mutual fund.
COMPLEXITY OF MANAGING ROYALTIES
This can be time consuming. Choose to forgo the hassles to simplify your life.
TAX SAVINGS
Sell real assets, you typically pay a much lower tax then you do when receiving a bonus or royalty income. This depends on your income bracket. Another potential option is the 1031 Tax Exchange that could save you from paying more taxes on “a like kind exchange”.
ESTATE ISSUES OR LIQUIDATION
o Easier while owner is living.
o Can be complicated for loved ones after owner has passed.
o Easier to distribute cash assets to heirs than to buy/sell or divide properties following owner’s passing.
o Can be complicated for loved ones after owner has passed.
o Easier to distribute cash assets to heirs than to buy/sell or divide properties following owner’s passing.
AVOID GOING TO THE
BANK FOR
CAPITAL NEEDS
BANK FOR
CAPITAL NEEDS
More often than not, landowners have found selling off a portion of their royalties is a great way to avoid going to the bank for a loan.
EMERGENCY EXPENSES
When you need money fast, selling your mineral rights can help.