Fraction Royalty is an investment group based in Austin, Texas. Our team has been in the Oil and Gas business since 2006.
We understand how time consuming and frustrating it can be to sell mineral rights. Our goal is to make the process of selling simple, fast, and transparent.
We accomplish these goals in the following ways:
Simple: After accepting a quote from our company, our team will handle everything. We will prepare the mineral deed for you, record the deed, notify the operator, and notify the county tax assessor about the ownership change. Once you have returned the signed and notarized deed, our team takes care of everything so you can sit back and relax.
Fast: We close most transactions in 7 days or less!
Transparent: When you contact us for a quote, we will provide the quote along with an analysis of your ownership. This means we provide you with maps and other data that will help you understand what is going on currently in your area. We want mineral owners to make an informed decision when they sell.
There are many mineral buyers out there who want to take advantage of mineral owners. They know that most mineral owners don’t fully understand what they own or what is happening on their acreage.
At Fraction Royalty, we go above and beyond to make sure you have a clear understanding of what you own so you can make an informed decision to sell. Whether you ultimately sell the mineral rights to our company or to another buyer, getting a quote from our company means you walk away with more information and a better understanding of your ownership.
At Fraction Royalty, we approach every deal looking for a win-win solution. This means providing mineral owners with options to consider. When you contact us for a quote, we typically provide two different types of quotes:
Traditional Offer: We will provide you with a traditional offer to sell 100% of your mineral rights for a specific price.
3 Year / 50%: We also provide a very unique offer called a 3 year / 50%. With these offers, you agree to sell your mineral rights for 3 years times the current average royalty income. However, once our company recovers the purchase price plus expenses, you get 50% of your mineral rights back.
Example: If you receive $500/month in royalty income on average, we would buy your mineral rights for $18,000. Our company would then collect all royalty income going forward until we receive $18,000 ($500 X 12 months X 3 years) in royalty income plus any expenses we incurred. Once we have recovered those funds, we deed 50% of the mineral rights back to you. This means you get cash today, but you will still own 50% of your mineral rights in the future.
The 3 year / 50% offer creates a win-win situation for our company and our clients. We get to recover our funds faster than normal over a 3 year period, reducing our risk. Our clients get to collect cash today for their mineral rights, but still enjoy the benefits of owning these mineral rights in the future.
Whether you choose to accept a traditional offer or a 3 year / 50% offer from our company, our goal is to create win-win solutions that benefit all parties.