Oil and Gas Management

“Growing up in ‘small-town’ America, as part of a family whose roots go back generations in the oil and gas business, I’ve had the privilege and joy of being around some of the finest the oil field has to offer.  From waking up early in the morning to go out and inspect sites with my friends and their dads, to doing roughneck work in high school and in my early college years, to eventually working for an operator shortly after college, my career has taken several turns. But as time has gone by, I’ve found the most joy and satisfaction in sitting on the side of the mineral owner and serving as an advocate for those who need someone with the breadth, knowledge and skill set to take this on for them.  

Bryan Frazier, Head of Energy Asset Management at Private Wealth

Early on in my career, I found myself serving as an advocate for mineral owners at a large bank, where I enjoyed the daily interaction with clients, answering questions and essentially being their ‘landman.’  As time went by, it became clear to me the large banks were performing mineral management out of necessity, rather than out of a want to service a need for their clients. Here at Private Wealth, we place our focus on our clients by investing in cutting-edge mineral management technology and having a dedicated staff that has the experience and knowledge to maximize the value of these unique assets. We recognize the importance of these assets and the legacy many wish to leave for future generations.”

- Bryan Frazier, Head of Energy Asset Management

We Specialize in Managing Your Natural Resource Assets

Across the country, the conversations surrounding portfolio management are usually centered on stocks, bonds and the like. However, those fortunate enough to have inherited and/or acquired oil, gas, or other mineral interests as a portion of their portfolio have enjoyed an incredible wealth-creating vehicle over the last several years, one that garners attention few understand how to manage in its entirety.

Natural resource assets such as oil, gas and water are often a core part of any quality asset portfolio. To effectively protect these assets for future generations, you need experienced advisors with in-depth knowledge. Your advisors should be able to handle the unique challenges associated with both the day-to-day management as well as long-term strategies for maximizing these assets’ value. Private Wealth’s Energy Asset Management team is made up of seasoned advisors with experience spanning back generations. As such, we understand how to best help these complex assets reach their full potential for future generations of your family. Our services are tailored to your entire portfolio, so you can always benefit from our protection and management of these assets:

General Management

Optimizing revenue growth in utilizing your income and tax strategies

  • The importance of having ongoing conversations with your respective attorney(s)/accountant(s) cannot be overstated. We will work alongside them to make sure your natural resource assets play an integral part of any long-term financial planning.

Reviewing environmental risks and mitigation

  • We collaborate with our real estate partners at Private Wealth to review/mitigate any aboveground environmental risks which have a direct impact on the production of your mineral
    interests.

Overseeing the transition or sale of your natural resource assets

  • In recent years, the oil, gas and mineral interest space saw a massive influx of capital on the ‘buy-side,’ which in turn created another market for our clients who wish to sell an asset or part of an asset. This type of transaction often acts as a windfall for any individual or entity that holds mineral interests. As such, Private Wealth works alongside your attorney(s)/accountant(s) so that any transaction, no matter the size, is cared for with the utmost importance.

Day-to-Day Property Management

Our team of advisors handles the everyday logistics of your portfolio by taking on the following:


Processing all royalties and other income

  • Processing royalties is a complex task when considering the actual accounting mechanism that accompanies it. Fortunately, our team of experts and specialized software continually analyzes your assets and provides reports on their status, no matter the amount of assets an entity or individual owns. From analyzing production numbers to confirming decimal interests, no task is too big or small for our staff to handle.

Handling accounting of income and the payment of expenses

  • Our internal processes are designed so that you, the mineral owner, have peace of mind about gap control/production analysis concerning your royalties. We utilize a robust accounting system to serve our clients. From income analysis to payment(s) of various expenses, you can be sure of our ability to handle both the big things and the little things.

Facilitating the payment of property taxes

  • Regardless of the number of interests contained in your mineral portfolio, navigating the payment of property taxes can be daunting. Private Wealth is staffed with seasoned professionals who understand the minutiae of property taxes, including analyzing differences in each state or counties’ tax codes to identify the path forward suited to your specific situation.
     

Arranging annual reports for efficient tax planning and preparation

  • Year-end reporting is often a time-consuming task for mineral interest owners and their accountants. Our precise accounting system and combined years of experience allows us to help with some or all of your annual reporting. We simplify the gathering of pertinent information such as income and/or production numbers and provide key datapoints to help navigate your
    yearly tasks.

Negotiating contracts and leases

  • Oftentimes, the value of having a mineral manager is seen solely through the lens of negotiating a mineral lease or similar contract. While there is some truth to this way of thinking, at Private Wealth, our landmen also have extensive experience negotiating on behalf of the operator, providing invaluable perspective of the process as a whole. Our merit lies with understanding how both sides see the negotiation according to their financial goals.

Completing property inspections, valuation and reviews

  • We work in concert with our real estate peers to inspect and/or value many of our clients’ interests whereby the surface and minerals might not be severed. An annual review of our clients’ assets is an incredible tool that we use for both productive assets as well as those that might be struggling. For example, we feel it is important to review activity in and around your portfolio’s assets regardless of production status to reveal any trend lines in possible leasing or other activity in the area.

Analyzing/Advising on JOAs, AFEs and JIBs

  • While some may shy away from working interest in a client’s portfolio, we embrace working interest along with all of its attendant complexities. Though working interest is not always advisable for every client, should it be handled with a firm understanding of a client’s appetite for holding it, we feel it can greatly affect earnings in a positive way. We leverage our staff’s experience on the operating side to help you recognize when it makes sense to participate, when it makes sense to ‘back-in,’ and when it makes sense to be ‘carried.’ When working interest is handled correctly, everyone can have a much clearer understanding of its positive or negative consequences.

Proactive on the Leasing Front

  • Perhaps one of the most profound ways a mineral manager supports their client is determining the level of interest in leasing a mineral asset. PW uses our own lease form for each of the major plays found in the United States. When necessary, we advise oil and gas counselors on how these should be written, including what the finished product should look like. These forms are then reviewed in a timely fashion to ensure we are up to date on your state’s relevant rules or regulations. We take great care in deciding who to do business with (i.e., lease to) on your behalf. By being proactive we can also afford to be selective, ensuring your mineral assets are developed in a prudent and responsible manner.

 


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