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Ironwood Royalty What’s my value?

What are my mineral rights worth?

The plain math behind a fair number, a worked example you can check, and a free estimate you can run right now. Every figure here is an estimate from public industry methods, subject to verification of your specific interest.

Last updated June 2026.

What are my mineral rights worth?

Producing oil and gas mineral rights are typically worth 36 to 72 times your average monthly royalty check, which is the same as 3 to 6 times your annual royalty income. A 1,000 dollar monthly check therefore implies a value of roughly 36,000 to 72,000 dollars, subject to verification of your decline curve, undeveloped upside, operator, and title. Leased but non-producing minerals are worth roughly 2 to 3 times your last lease bonus, and unleased speculative acreage usually 50 to 250 dollars per net mineral acre.

That one rule covers most owners, but the honest answer is that value depends on what you actually own and how it is producing. Below is the full method, the numbers behind it, and a free estimator that returns a range on screen so you can see where you stand before you talk to anyone.

Free estimate

What are your minerals worth?

Enter a few details for an instant range. Nothing is sent or stored. This is an estimate, not an offer.

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How producing mineral rights are valued (the 36 to 72 rule)

Buyers value producing minerals on the income they throw off. The shorthand the whole industry uses is a multiple of your royalty check. Stated two equivalent ways:

  • 36 to 72 times your average monthly check. Average your last three to six checks, then multiply.
  • 3 to 6 times your annual royalty income. The same number, expressed yearly.

A neutral valuation firm, Stout, found actual transacted multiples landing around 4.5 years of cash flow on the Gulf Coast and 7.5 years or more in the Permian, Mid-Continent, and ArkLaTex regions, which is exactly the 36 to 72 month band in practice. So the rule is not marketing, it is what deals actually clear at.

Worked example

Say your minerals pay an average of 1,000 dollars a month. The low end is 1,000 times 36, or 36,000 dollars. The high end is 1,000 times 72, or 72,000 dollars. Where you land inside that range depends mostly on your decline curve.

Why the multiple moves

The single biggest swing factor is how fast your wells decline. Horizontal shale wells commonly lose 60 to 70 percent of their output in the first year, so a brand-new well earns a lower multiple than an older, flatter one that has settled into a slow, predictable decline.

  • Fast-declining, very young wells sit near the bottom, around 24 to 36 months.
  • Steady mid-life wells sit in the middle of the 36 to 72 band.
  • Flat, mature wells with stable output sit near the top, around 70 to 80 months.

Net mineral acres vs net royalty acres (the conversion trap)

When a buyer quotes a price "per acre," ask which acre they mean. A net mineral acre (NMA) is your physical fractional ownership. A net royalty acre (NRA) normalizes that to a 12.5 percent royalty so interests on different leases can be compared. Because modern Permian leases often carry 20 to 25 percent royalties, one NRA can represent 1.6 to 2 times the revenue of one NMA. Always normalize to NRA before you compare two offers, or you can be talked down without realizing it.

The undeveloped upside buyers do not always mention

Your interest can hold value beyond the wells producing today. Proved undeveloped (PUD) and proved developed non-producing (PDNP) locations are future drilling that has not started yet. A lowball buyer prices only your trailing cash flow and keeps that upside for themselves when they resell. A fair valuation tells you it exists. This is the difference that turns a 10,000 dollar offer into a 100,000 dollar one further up the chain, and it is the reason we explain it instead of hiding it.

What interests are worth, by basin

Localized reference bands, all estimates subject to verification:

  • Permian (TX and NM): Tier 1 producing interests have traded at roughly 30,000 to 60,000 dollars per net royalty acre at the institutional level (Mercer Capital). Retail producing interests in Midland and Martin counties commonly run higher per NRA than non-core acreage.
  • Haynesville (TX and LA gas): non-producing interests roughly 3,000 to 7,000 dollars per net mineral acre, and 4,500 to 15,000 dollars or more in active areas, lifted by LNG demand.
  • Oklahoma and North Dakota: active mineral markets with their own value bands; ask for a basin-specific range.

Valuation questions, answered plainly

How do you calculate what mineral rights are worth?
For producing minerals the standard method is a multiple of your royalty income: roughly 36 to 72 times your average monthly check, which is the same as 3 to 6 times your annual royalty. The exact multiple inside that band depends on how fast your wells are declining, the operator, the basin, and your title.
Is a mineral rights value calculator accurate?
A calculator gives an honest first estimate, not a final number. It applies industry rule-of-thumb multiples to the income you report. It cannot see your decline curve, undeveloped upside, or title, so treat the result as a range to verify, never as an offer. Our estimator is deliberately framed that way.
What is the average price per acre for mineral rights?
There is no single average because value depends on production, not just acreage. As a reference point, Tier 1 producing Permian interests have traded at roughly 30,000 to 60,000 dollars per net royalty acre at the institutional level, while speculative unleased acreage can be worth as little as 50 to 250 dollars per net mineral acre.
Why would two buyers quote me very different numbers?
Because they price different things. A lowball buyer values only your trailing producing cash flow and quietly keeps the undeveloped upside. A fair buyer accounts for that future drilling potential. Differences also come from how each buyer reads your decline curve, operator, and title.
Does Ironwood charge for a valuation?
No. The on-screen range and any written valuation are free with no obligation. We are a principal buyer, so there is also no broker commission if you do decide to sell to us.

Run your number, then talk it through

The estimate above is yours to keep. When you want a written valuation or a real offer, a person at Ironwood will walk you through it. No pressure, no commission.

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