The same arithmetic buyers use, in your hands. Estimates, not offers, but honest ones.
Buyers typically pay a multiple of your average monthly royalty check, commonly 4 to 7 years' worth depending on decline, commodity mix, and nearby activity.
New wells decline fast, so a recent first check overstates the durable average. For a real number on your specific wells, ask us.
Your fractional interest times the gross acres in the tract. Add your royalty rate to see net royalty acres, the unit most buyers quote today.
One net royalty acre equals one net mineral acre leased at a 1/8 royalty, so NRA = NMA times your royalty divided by 1/8. A 3/16 lease turns 10 NMA into 15 NRA. Fractions like 3/32 are fine in any box.
Net acres ÷ unit acres × royalty rate. Use it to verify what the operator sent you.
If the decimal on your division order doesn't match, don't sign it yet. Here's why.
All you have is the decimal on a check stub or division order? Run it backward to your net mineral acres and net royalty acres.
NMA = decimal × unit ÷ royalty ÷ allocation. NRA = decimal × unit ÷ 1/8 ÷ allocation. On a multi-unit horizontal well, your decimal is scaled by the share of the lateral in your section; that share is the allocation factor, printed on the division order.
Oklahoma charges documentary stamp tax of $0.75 per $500 of price on recorded deeds. The stamps are printed on the deed, so any recorded sale can be run backward to the price paid.
Stamps round up to the next $500 of price, so the decoded number is accurate to within $500. Deeds marked exempt, and deeds between family members or related entities, carry no stamps and can't be decoded. Oklahoma only; Texas has no deed stamp tax.
Your decimal times the well's production and prices, less typical deductions. Use it to sanity-check a new well or verify an existing check.
Monthly well volumes are public record in most states. Gathering, processing, and transport deductions commonly run 5 to 15 percent on gas, less on oil, depending on your lease language. If your actual checks run well below this estimate, something is worth a look.
Minerals split as they pass down. Multiply the chain of fractions to find what reached you.
If different generations took unequal shares, or someone's share went through a will rather than intestacy, the clean chain breaks. Send us the documents and we will run the title at no cost.
A royalty stream declines as the wells do. This compares an offer in hand against the present value of holding, using your own assumptions.
Runs 30 years of declining income discounted to today. Mature wells often decline 5 to 10 percent a year; wells in their first years decline far faster, sometimes 50 percent or more. The discount rate is what your money could earn elsewhere, adjusted for the risk of prices and wells. This is arithmetic, not advice: taxes, new drilling, and your own situation all matter, and sometimes the right answer is don't sell.
Oklahoma gives you 20 days to elect. We built a dedicated calculator that compares every bonus option against participating in the well, with the math shown.
Pooling Election CalculatorTools from our own deal desk, for the folks who work the courthouse and the data rooms. If you hold overrides from a career of deals, we buy those too.
Weighted working interest across up to three units of a multi-unit horizontal, and your share of the AFE.
Weighted WI = Σ (net ÷ gross × allocation). Weighted NRI = weighted WI × average unit NRI. Cost to participate = weighted WI × AFE. Average unit NRI runs 0.75 to 0.80 in most modern OK units; check the pooling order or your title work.
Assigning leasehold and keeping an override? This computes the retained ORRI decimal and what it earns under a payback scenario.
Retained ORRI = WI × (NRI held − NRI delivered). The scenario value is what that override earns if the well grosses the chosen multiple of its AFE: a 1.25x well is a modest one, so treat that as a floor case, not a valuation.
What a carry really costs the farmee, expressed per acre earned.
Carry cost = (carried net acres ÷ unit) × AFE. Cost per acre earned = carry cost ÷ acres earned. Compare that per-acre number against what leases trade for in the section before you shake hands.
Your actual value depends on your wells, their decline, and the activity around your section. That research is free here, with the work shown.
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