Mineral and Royalty Companies Reanimate After Quiet First Half

After a quiet first half of 2022, the roughly $770 million spent on acquisitions in June and July is the first sign that the mineral rights and oil and gas royalty industry is coming to grips with the current chaotic state of the global economy.

Recent dealmaking was led by Sitio Royalties Corp., a company born in June after a merger between Desert Peak Minerals and Falcon Minerals Corp. closed.  (Source: Hart Energy, Shutterstock.com)

[Editor's note: A version of this story appears in the August 2022 issue of Oil and Gas Investor magazine.]

After largely sitting out A&D in the first half of 2022, mineral and royalty acquisition companies began to warm up to deals in June and July, snapping up interests in Louisiana, North Dakota, Montana and, naturally, the Permian Basin.

The minerals and royalties space has otherwise seen sporadic deals, with occasional transactions such as a February acquisition announced by Brigham Minerals Inc. of interests operated by Pioneer Natural Resources Co. and Endeavor Energy Resources for $32.5 million.

With roughly $770 million spent in the past two months, it’s the first sign that mineral and royalty acquisition companies are coming to grips with the chaos of a global economy beset by ill economic winds and the volatility of commodity prices.

Already have an account? Log In

Subscribe now to get unmatched and complete coverage of the Energy industry’s entire landscape!

View our subscription options
  • Access to site wide content
  • Access to our proprietary databases
  • Watch exclusive videos with energy executives
  • Unlimited access to an extensive library of Playbooks, Techbooks, Yearbooks, supplements, and special reports
  • Newly Added! Access to Rextag's Energy Datalink, containing extensive GIS databases of energy assets, production records, processing capacities, physical locations, planned projects, acquisition records, and much more.

Darren Barbee

Darren Barbee is senior editor for Oil and Gas Investor magazine.