– Josh Prier, Managing Director
Our simple process starts with a conversation. By learning about the objectives for your mineral interests, we can give feedback on how we might be able to help. We keep the heavy lifting to a minimum for our clients. All we need to get started is copies of your check stubs from the last three months.
Peregrine performs a rigorous internal engineering study, and also contracts with a 3rd party engineering firm on each property we evaluate. This helps ensure we’ve given a true 360 analysis on inspection of the pros and cons associated with each individual asset, in bringing our clients a fair, honest and transparent feedback.
Our valuations and analysis are straightforward and easy to understand. We’re also here at each step to not only walk you through the evaluation and offer, but answer questions as they come up from our clients. Having Peregrine evaluate and make an offer on your properties does not obligate our clients to a thing.
In working with Peregrine, our clients enjoy a quick and simple closing process. We stand behind the offers we put in writing, and often can close within 7-10 business days. If the offer is accepted, we’ll arrange for payment in whatever way best works for our clients.
In order for Peregrine to analyze and provide a fair market value, we require the most recent 4-6 months’ worth of check stubs. We do not share these with anyone, and assess several factors found on the checks to determine value. Should we reach an agreement on the sale price, our goal is to have the paperwork taken care of and payment to you within 7-10 days.
There is no obligation to sell at any point. In fact, many of our clients find the value in using Peregrine for Estate appraisals.
Our internal engineer performs an evaluation on your oil royalties to determine a fair valuation, and we then send the data to a 3rd party, independent engineering firm as well. They analyze historical production data, calculate decline rates, and review historical cash flows. This information is used to forecast future performance of the asset. Our goal is to offer fair, honest and transparent value while understanding the inherent risks and uncertainties.
Yes, in fact many of the clients we work with do this very thing; selling 25% or 50% of the royalty to realize the benefits of a lump-sum payment, while at the same time maintaining part of their interest for the cash flow.
Because we see ourselves as advisors first, doing what’s in the best interest of the royalty owner. Each of the clients we work with have their own unique circumstances around the asset, and we give each royalty owner the time and attention needed to make the best decision for them. We strive to provide the maximum value possible on all our evaluations while being transparent with our client and efficient in our methods. As a company, honesty and integrity are important to us and we put the relationship with our clients at the top of our process.
The short answer is on some level, yes. We work with many clients who own non-producing acreage associated with current production, and give credit for that upside accordingly, however our clients need to have some baseline of monthly revenue for Peregrine to move forward with an evaluation.