Buying royalties isn't "set it and forget it." You need to do your homework to avoid overpaying.
: New horizontal wells produce heavily at first but can drop to 1/2 or 1/3 of their initial production within the first year. Never value a property based solely on its first few months of "flush" production. buying natural gas royalties
: Your income depends on their ability to keep the gas flowing. Research their track record and financial stability. Buying royalties isn't "set it and forget it
Experienced investors often use a "portfolio approach," spreading their risk across different basins and operators rather than putting all their capital into a single well. buying natural gas royalties