Permian Mineral Rights Package

Sourcing

The package surfaced through a broker we'd worked with on a prior non-op deal — a contiguous block in Reagan County released by a Permian operator that had decided to redeploy capital into its own drilling program rather than hold non-core mineral acreage. The broker held the deal for 14 days before clearing it to outside bidders, and we submitted our bid against four competing family offices on the same strip.

Our edge was direct unit-level data: a 12-month production history by well, a complete lease-chain audit confirming no competing royalty claims, and a partner operator already in our network who could step in on any infill work. Most bidders were running the package off the CIM alone.

Underwriting

The math case for a non-op mineral package at this acreage tier is straightforward: net royalty yield against 12-month trailing production, with downside bounded by the decline curve and optionality on infill upside if the operator drills back into our section.

• Reserve base: 1,180 net acres across two operated sections of the Wolfcamp A and Lower Spraberry
• Royalty yield: 4.8% net over the prior 12 months, with 3-yr type-curve NPV of $48/BOE breakeven
• Operator credit: top-quartile Permian completion design, active drilling in adjacent sections
• Hedge component: ~38% of expected 12-month production pre-hedged at $72 WTI floor via the operator's swap book

Outcome

Inside 12 months the position returned 4.8% net royalty yield, with two infill wells drilled by the operator on adjacent acreage producing above 30-day type curve. We partnered with the operator on a third infill water-disposal pad that de-risked the next development phase and improved the long-term decline curve across our section.

The deal worked because the price we paid reflected the operator's drilling-capital pressure, not steady-state royalty value; the underlying geology was strong; and the operator's forward plan was aggressive enough that we kept both the cash yield and the development optionality. Non-op mineral packages are a quiet corner of the energy market where most PE allocators underwrite too slowly — Dominion's 14-day triage converted broker inbox to closing table.