# Mineral Rights Offer Checker: What Their Number Actually Assumes > Free offer checker for mineral owners. Enter the offer you received and your royalty income, and see the multiple it implies, what the buyer must be assuming to justify it, and the questions to ask before you answer. Source: https://www.berlinroyalties.com/offer-checker/ Publisher: Berlin Royalties, a veteran-owned oil and gas mineral and royalty buyer in Tulsa, Oklahoma, buying for its own account since 2014. Call or text 918-984-1645. License: free to quote and cite with attribution to Berlin Royalties and a link to the source URL. Free Tool ยท No Email Required ## What does their offer actually assume? Every offer contains a set of assumptions the buyer did not show you. This works out what they must be, so you can ask about them. It will not tell you the offer is too low, because we cannot know that from a number alone, and anyone who says otherwise is selling you something. ### The offer in front of you Offer amount (dollars) Your average monthly royalty, last 12 months Net royalty acres, if you know them (optional) Is anything producing? Yes, I get royalty checks No, nothing is producing yet It used to pay, but the checks stopped How old are the producing wells? Under 2 years 2 to 10 years Over 10 years I do not know Undrilled locations under you? I do not know Yes, I believe so No, it is fully developed Enter an offer and your average monthly check. ## What that number implies ## Questions worth asking them ## Why we built it this way Most offer calculators on mineral buyer websites exist to tell you your offer is too low, because the company running the calculator wants to make you a different one. Ours does not do that, for a straightforward reason: **a number on its own cannot tell you whether an offer is fair.** An offer of forty two thousand dollars might be excellent or insulting depending on whether the wells under you are two years into a steep decline or twenty years into a flat tail, whether there are four undrilled benches beneath you or none, and what the buyer assumed about gas prices in 2034. Those are the facts that decide it, and the offer letter almost never contains them. What a number *can* do is reveal the arithmetic. If someone offers you fifty times your monthly check, they are assuming something specific about decline and about undrilled upside. Working backwards to those assumptions gives you something concrete to ask about, and a buyer's willingness to answer tells you a great deal about the buyer. ## The multiple, and what it is really measuring Nearly every offer you receive is a multiple of your recent royalty income. Typically somewhere between 36 and 60 months, which people quote as "three to five years." That multiple is compensation for **decline**. The buyer expects the wells to pay less every year, so they discount accordingly. Which means the multiple is only as good as the decline assumption behind it, and the decline assumption depends entirely on facts about your wells: - **A new shale well** can lose 60 to 70 percent of its production in the first year. If your twelve month average includes that first year, your average is not a durable number, and a multiple applied to it overstates the income but may still underprice the tail. - **An old conventional or waterflooded well** may barely decline at all. A multiple built for decline that is not happening systematically underpays, and this is the single most common way long-held interests get undervalued. - **Undrilled locations** get no term in the arithmetic whatsoever. If there are benches beneath you nobody has drilled, an income multiple values them at zero by construction. That last point is the one worth carrying with you. The multiple is not a valuation of your minerals. It is a valuation of your check. ### Want the actual answer rather than the arithmetic? Send us the offer letter and a recent statement. We will tell you what the wells under you are doing, what we think is undrilled, and what we would pay and why, with the components separated rather than blended. If the offer you already hold is better than ours, we will tell you that and explain why. Free, and no obligation of any kind. [Got an Offer Letter?](https://www.berlinroyalties.com/got-an-offer/) [Get a Free Valuation](https://www.berlinroyalties.com/free-valuation/) ## Related - [Got an offer letter?](https://www.berlinroyalties.com/got-an-offer/) and [before you sign](https://www.berlinroyalties.com/before-you-sign/) - [Ten questions to ask any mineral buyer](https://www.berlinroyalties.com/questions-to-ask/) - [How mineral rights are actually valued](https://www.berlinroyalties.com/mineral-rights-value/) - [When not to sell](https://www.berlinroyalties.com/when-not-to-sell/) - [All thirteen mineral calculators](https://www.berlinroyalties.com/tools/) - [The mineral buyer directory](https://www.berlinroyalties.com/mineral-buyers/), including us, in the same format This tool performs arithmetic on numbers you enter. It is not an appraisal, not an offer, and not financial advice, and it cannot see your wells. Berlin Royalties is a mineral buyer and a landman shop in Tulsa, which means we are a potential counterparty to any sale you make. Treat our tool the way we suggest you treat our offers: check the reasoning.