Top 10 Benefits of Pre-Producing Royalty Acreage
1. Absolutely no liability, no additional capital contributions or assessments.
2. Attraction of discounted pre-producing pricing of royalty acreage, producing properties are typically divested for at least 36 months cash
flow. Existence of growing secondary market for producing royalties as a possible exit strategy.
3. Participation in initial virgin production, with a multi-year prescription period.
4. Direct ownership of mineral royalty acreage. Transferability of assignments and a very quick turnaround on conveyances.
5. Access to the best possible royalty acreage at the best possible price.
6. Risk/reward ratios are well within conservative investing principles.
7. Access to the best possible operators. Professional expertise and ground floor entry into generally considered industry projects.
8. Royalty owners are paid first from pre-expensed revenue, directly by the operator, much like preferred stock owners.
9. Opportunity to diversify holdings due to extremely low initial investments.
10. When it comes to production, everyone is on the same side of the fence.
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