Minerals Business Supplement July 2020
While minerals have been the darling of the oil patch over the past couple of years, even this low-cost investment sector is feeling the rush of escaping capital from the industry.
As operators drop rigs at a record pace, the idea of buying minerals just ahead of the drill bit has become a whole lot murkier proposition. And, alas, no one could have imagined that the spigots on existing production would be tightened down via shut-ins as producers protected their commodity from too-low prices—and giving royalties a
burr-cropped haircut in doing so.
But interesting times make for unprecedented opportunities.
Articles from this issue
A brutal downcycle hurts all, but don’t mistake mineral portfolios with struggling E&Ps. The nature of their part of the business means less risk but greater stability in times like these.