Mineral Rights in Texas

Like the state itself, the opportunities for buying and selling mineral rights in Texas are big. Read on for a brief history of Texas mineral rights, opportunities for investors and 10-point checklists for Texas mineral rights sellers and buyers.

A Brief History of Texas Mineral Rights

 

Texas landowners have long benefited from the mineral and hydrocarbon reserves sitting beneath their properties. Mineral owners can trace their ownership back through time, linking previous owners through legal documents and courthouse records back to Texas sovereignty (the chain of title process).  Privately held mineral rights were officially written into the Texas state constitution of 1866, 34 years before the first oil well was drilled at Spindletop, near Beaumont.

 

The first owners of land across Texas passed on their mineral rights to their descendants, sold portions off or otherwise split their interest. The long legacy of mineral rights ownership in Texas allowed interests to be divided and divided time again leading to a specialty asset class that is bought and sold with ownership calculated up to eight decimal places.

 

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Opportunities for Buying and Selling Mineral Rights in Texas

Texas is home to the country's most abundant hydrocarbon reserves, from the Permian in the west and Haynesville in the east to the Barnett Shale of north Texas and the Eagle Ford in the south. Yet for most of Texas history, unlocking these vast oil and gas reserves was limited to vertical wells drilled in conventional reservoirs. Today's booming Permian Basin was not always booming with much of its shale oil written off for decades as unrecoverable. However, the Shale Revolution of the past decade has unleashed oil and gas production across Texas with the advent of horizontal drilling and hydraulic fracturing.


Faced with diminishing returns from legacy fields and stripper wells, Texas mineral owners have been propelled suddenly into a burgeoning market for mineral buyers and sellers. Today, two-thirds of 254 Texas counties produce oil and gas. The impressive unconventional basins of Texas have given unprecedented opportunities to large institutional mineral rights buyers and investors large and small looking to sell.

What's buying and selling?

Buying or Selling Mineral Rights in Texas?

Here’s a quick overview of the hottest oil, natural gas and NGL plays spanning the state.

Crude Oil


Mineral rights across the Permian’s Midland and Delaware Basins fetch a premium for their stacked pay zones (or benches) while Eagle Ford offers investors many opportunities to lease, buy and sell.

Natural Gas

 

Stable and improving natural gas prices have led many operators to increase drilling in the Haynesville Shale even during recent downturns, making Texas dry gas plays an increasing focus for buyers and sellers.

NGLs

 

Natural gas liquids (NGL) are an increasingly important part of Texas energy production with the Eagle Ford especially benefiting from close proximity to export terminals at Corpus Christi.

Why is now the best time?

$3 2021 2022 2023 2024 2025 $3.19 $3.29 $3.00 $3.00 $3.00 $2.87 $2.74 $2.58 $2.57 $2.59

Demand is the key to driving prices. Gas is more stable than oil due to the end market, therefore investors can forecast and predict future profits to mineral portfolios

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Learn More About Selling and Buying Mineral Rights in Texas

Get a 10-point checklist to help guide your mineral rights buying and selling decisions.