Resource Royalty LLC, a private energy investment company and oil & gas sponsor headquartered in Dallas, announced the launch of their latest direct-title, 1031 exchange-eligible, mineral rights offering: Resource Royalty 24 LLC.
Resource Royalty 24, a nearly $6.7 million offering, consists of 12 curated mineral and royalty properties across the Anadarko Basin in Oklahoma and the Midland Basin in West Texas. There are currently 33 producing wells, 11 completed wells, four drilled uncompleted wells, six filings, and 32 additional well locations.
The four drilled uncompleted wells were upgraded from permit status to drilled uncompleted in the short timeframe between constructing the portfolio and going live.
“I track drilling activity on and around all of our properties daily. When a drilling rig moves onto a new portfolio’s property prior to launch, it’s always very exciting. We know we’ve chosen desirable properties operated by top-tier oil and gas companies, and it’s rewarding to demonstrate this to our investors right from the beginning,” said Christy Ewert, vice president of land.
To build a robust and diversified mineral portfolio, Clayton Deering, director of engineering, performs significant engineering and analytical analysis. According to Deering, he used a conservative pricing environment to model future growth and cash flow for Resource Royalty 24. His model was based on a commodity mix of 48% oil, 27% natural gas and 25% natural gas liquids.
“Resource Royalty 24 represents the company’s commitment to acquiring high-value assets in core basins known to withstand price volatility and where break-even costs are amongst the lowest across the lower 48,” said Deering.
The company, which was founded in 2011, said it pays close attention to the current pricing environment when constructing portfolios.
“Given the ‘drill, baby, drill’ sentiment from the Trump administration, coupled with the unknown impact of pending tariffs, we discounted the price deck even more heavily than we usually do,” said Beth Good, chief executive officer. “In addition, we intentionally kept the offering size below $10 million. Based on the demand we experienced with Resource Royalty 23 LLC, we felt a more conservative offering size made sense in light of expected price volatility over the next 90 days.”
As reported by AltsWire earlier this month, Resource Royalty LLC fully subscribed its Resource Royalty 23, a $6.2 million portfolio that launched at the beginning of the year and is roughly 50% oil and 50% natural gas.
According to the company, the other key component of portfolio construction is the pace of drilling new wells. Again, due to current conditions, Resource Royalty was intentionally conservative when modeling future growth. Even though the portfolio has properties in both the prolific Permian Basin and the core of the Anadarko Basin, new well growth is engineered in the single digits starting in 2028.
Resource Royalty has sponsored 24 private offerings to date, with $173 million funds raised, 440,000 gross acres acquired, and has 1,650 producing wells.
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