There are various reasons why people wish to sell oil and gas assets. Regardless of the reason, Cornerstone is well-suited to acquire such interests. Cornerstone works directly with the seller which eliminates various brokerage fees. Furthermore, Cornerstone has the resources to appraise assets and prepare fair bids promptly. Below is a list of common reasons that many owners choose to divest assets.
For each individual or entity, portfolio restructuring may mean something different. Owners of oil and natural gas assets may wish to divest lower-yielding properties to fund higher-yielding opportunities while others may be seeking additional diversification in their portfolio.
Estate planning is very important when oil and gas interests are involved. The process of dividing and transferring interests takes a considerable amount of time and paperwork, not to mention the legal expenses incurred. With this knowledge, many owners choose to sell their oil and gas interests to simplify their estate and avoid the active management of their interests.
Owning oil and gas interests requires active management. As an individual owner, managing offers, division orders, check details and tax statements can be daunting. Divesting interests in a quick, cash transaction rids sellers of the continuing time burden.
Selling oil and gas interests is a simple, hassle-free way to quickly receive a cash payment. This infusion of cash can be used for any number of expenses, including: debts, taxes, investment opportunities and/or any other expenditure.
A Section 1031 Exchange allows the owner to sell a property and purchase another “like-kind” property using the proceeds from the initial sale without paying taxes immediately. These taxes are deferred until the sale of the replacement property. There are strict guidelines regarding the requirements for an exchange. Oil and gas interests may qualify for a Section 1031 Exchange opportunity if properly managed.*
*Cornerstone does not provide tax advice nor can we make representations regarding the tax consequences of an exchange transaction. You should consult your independent tax advisor for more information regarding the IRC codes, federal and state tax issues.