There are many reasons an owner may choose to sell all or part of an oil and gas royalty or mineral interest, including:
Estate planning or estate liquidation
Current cash needs
Diversification of investments
Simplification of financial affairs
Elimination of accounting and recordkeeping
Converting uncertain future income into cash today
Producing oil and gas properties naturally decline over time. As oil and gas are produced from a reservoir, future production and royalty payments generally decrease unless additional wells are drilled or other development occurs.
For some owners, continuing to hold the mineral or royalty interest is the right decision. Others prefer to receive a lump-sum payment today rather than retain the risks and uncertainties associated with future production, commodity prices and additional development.