DiversificationFor many royalty companies, diversification means only one thing: the number of wells contributing to cash flow potential. For API Royalties, diversification means exposure to not only as many pooled producing sections as possible, but exposure to both producing and non-producing assets. Including a percentage of non-producing assets is key, as oil and gas wells are declining assets; the ability to enjoy new revenue streams as new wells are drilled can make the difference between a good investment, and a potentially great one.
TimingBy including non-producing assets (mineral interest ownership) in our asset portfolios, we own the rights to explore, mine or produce all hydrocarbons underlying our acreage. This provides the advantage of negotiating our actual leases, which opens the door to lease bonuses and delay rentals – extra perks that can substantially impact overall performance potential.
PositionWe focus exclusively on large, contiguous shale basins, acquiring minerals and royalty positions in proven acreage where large, well-capitalized operating companies are actively drilling. Mineral/royalty ownership in unconventional shale plays also provides exposure to upside potential. As continued development proves up additional reserves, the market value of royalty interests has the potential to increase, resulting in a better overall ROI.
ExpertiseFrom initial leasing activity to permitting and infrastructure analysis, our acquisition experts construct a full field development profile, delivering key insights on immediate and future drilling activities that will drive total performance.
Our objective is to develop a combination of short, medium and long term potential revenue streams through monthly distributions resulting from producing royalties, periodic payments of lease bonuses, and lease extension option payments.
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API Royalties specializes in the acquisition and divestiture of mineral and royalty interests, helping our exclusive group of clients diversify and strengthen their asset portfolios through smarter energy investing.
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