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What are my mineral rights worth?
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Texas oil lease · RRC 08-58035 · Midland County
Interstate 8-32 C
Operated by Diamondback E&P LLC. State record through Jul 2026.
On your division order. Work it out if you are not sure.
The lease's own trend is fitted to its last 24 months.
Blank uses the last 12 months' WTI average.
Blank uses the last 12 months' Henry Hub average.
Value range · 1.1 to 2.2 years of income
$20,307 to $39,587
Middle case $27,303, on income of $17,840 over the last 12 months.
A range from a model, not an offer.
- Last 12 months
- $17,840
- Next 12 months
- $13,371
- Next 5 years
- $32,052
- Falls each year
- 38%
As a multiple of a year’s income
Mineral buyers often quote a price as years of income
The band runs from a buyer who wants a 20% return to one who accepts 10%. The black line is the middle case.
- Low: a buyer wants 20%
- $20,307
- 1.1x a year
- Middle case
- $27,303
- 1.5x a year
- High: a buyer accepts 10%
- $39,587
- 2.2x a year
Income now and the decline curve
Falls about 38% a year, to $1,589 a year by year five
Solid bars are Interstate 8-32 C at your decimal, estimated from the state's volumes. Hatched bars are the next five years at 38% lower each year.
- Oil
- Gas
- Projected
SourceTexas Railroad Commission Production Data Query, lease 08-58035, through Jul 2026; EIA monthly prices; Royalty Clerk projection.
What went into it
The assumptions, in plain terms
- Income today
- $1,373 a month
- Average of the newest three reported months, at the prices below, after Texas tax.
- Decline
- 38% a year
- The lease's own trend over 24 reported months. Low case 48%, high case 28%.
- Prices
- WTI $74.28, gas $3.60
- Averages of the last 12 months, held flat.
- Return a buyer wants
- 20%, 15%, 10%
- Low, middle and high case. A higher return means a lower price today.
- How far ahead
- 20 years
- Income after that is not counted.
- Left out
- New wells
- Lease bonus, plant products and any well not yet drilled on your acreage.
Before you rely on it
Is the income the range starts from right?
The whole range rests on what you are paid now. If checks have been short, the value is short too. Upload your statements and we compare each month with the state record.
Lease page for Interstate 8-32 C in Midland County.
How the range is built
The tool starts from what the lease is paying you now, lets that income shrink year by year the way wells do, and adds up what those future checks are worth today.
The formula
- Income today
- your decimal × the lease's newest 3 months of sales × price, less Texas tax, × 12
- Decline
- the lease's own trend over 24 months, kept between 5% and 60% a year, or the rate you choose
- Each month
- income today ÷ 12, shrunk by the yearly decline, for 20 years
- Value today
- each month's income ÷ (1 + return) for the years until it arrives, added up
- Range
- low: 20% return, decline +10 points. Middle: 15%. High: 10%, decline −10 points
Prices are held flat at the last 12 months' averages unless you type your own. If you type an average check, that check is the income today.
Reading the result
- The decline matters most. Change the rate from the lease’s trend to 20% and watch the range move. A slower fall raises every figure.
- The income has to be right. If checks have been short, the value is short too. The check-drop diagnostic and a statement check find shortfalls before a buyer prices them in.
- Read the years-of-income figure. Buyers often quote a price as a multiple of the last year’s income. Compare an offer with the low and high multiple, not only the dollars.
The range leaves out drilling that has not happened. It also leaves out plant products and adjustments for earlier months. Use it as a reference point for reading an offer.
Questions owners ask
Common questions
Short answers. Sources are at the end of the page.
What are my mineral rights worth?
A producing interest is worth what its future royalty income is worth today. Estimate the checks you will receive as the wells decline, then discount them because money later is worth less than money now. This tool does that for the last two years of your lease's state record, and shows the answer as a range and as a number of years of income.
Why is the answer a range and not one number?
Two things nobody knows: how fast the wells will decline and what return a buyer wants. The low case assumes a decline 10 points steeper and a buyer who wants 20% a year. The high case assumes 10 points slower and a buyer who accepts 10%. The middle case sits between them. A buyer's offer usually lands inside a band like this, or explains why it does not.
How fast will my royalty income fall?
Most wells fall fastest in the first years and flatten with age. The tool fits a straight line through the log of the lease's last 24 months of output, at fixed prices so a price swing does not read as decline. It keeps the result between 5% and 60% a year. If the lease is too new to have a trend, or you want a cautious case, choose a rate yourself.
Does the value include new wells or a lease bonus?
No. It counts only the income from the producing lease you pick, or from the average check you type. Acreage with no well yet, or with room for more wells, can be worth more than this shows. That value depends on the operator's plans, which no public record shows.
Is the range what a buyer will offer?
No. A buyer sets an offer from their own view of the wells, prices and return they need. The range gives you a reference point: an offer far under the low end means the buyer expects steeper decline or a higher return than this tool assumes. Ask what they assumed.
Why 10%, 15% and 20%?
Ten percent is the rate the SEC's accounting rules use to value oil and gas reserves, which the industry calls PV-10. A buyer of a small mineral interest takes more risk than a public company does, so the tool also shows 15% and 20%. Every step up in the rate lowers the price today.
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