How does the Oak Tree "Exclusive" Royalty Portfolios Work?
Our 5-Step Investment Process
- Identify: Oak Tree has a proven, ongoing acquisition strategy with supporting infrastructure that acquires producing oil and gas mineral / royalty assets on a weekly basis. Oak Tree holds these assets in its own portfolio for a limited period and transitions them to various partnerships or to individuals.
- Aquire: Exclusive portfolio investors acquire a diverse group of producing energy royalties with a $50,000 minimum investment. The portfolio will be adapted to the investment objectives of the investor.
- Reinvestment: Throughout the year and in alignment with the investor's objectives, Oak Tree will reinvest the cash flow from the initial portfolio into more royalty interests to increase the investor's asset base as well as their long-term cash flow. At some point, at the discretion of the owner / investor, Oak Tree will stop the reinvestment plan and direct all monthly payments to go straight to the owner.
- Manage: Oak Tree will manage the entire acquisition process from the legal documents, recording of title, notifying operators, notifying the taxing agencies, and transferring payments. Oak Tree's affiliate royalty management company, Madison Royalty Management, LLC, will provide monthly cash flow statements, quarterly investment statements, and year end statistics and tax statements.
- Divestment: When / If the owner chooses to sell any or all of their portfolio, Oak Tree will assist them in the divestment by:
- Providing the necessary data and documentation and advise them on various divesture outlets.
- Set up the divestment for the seller with one or more outlets.
- Manage the sale process through funding.
Example of Recent Personal Royalty Portfolio Offering:
Multi Asset Royalty Package
Property Summary
This is an outstanding producing royalty package from the inventory of Oak Tree Minerals offered for sale to individual buyers. The assets are royalty interests with excellent cash flow that produce a good balance of crude oil, natural gas and NGL's. The active wells reside on titled mineral interests that are located in diverse locations throughout Texas and Oklahoma. They produce from some of the best formations in North America including the Permian Basin, Eagle Ford Shale, Austin Chalk and Barnett Shale.
Some of the best energy companies in the world are operators of the various wells including EOG Resources, Exxon Mobil, Occidental Petroleum, Unit Petroleum, and Chesapeake Energy.
The cash flow at acquisition produced an annual cash on cash yield of ~16.5%. Current pricing for crude oil is up since that time over 25% and current pricing for natural gas is up over 50%. This is very positive for the cash flow of the package pushing it over a 20% cash on cash yield in the forseeable future.
Package Details
• 184 Producing Wells
• 40 Horizontal
• 144 Vertical
• Royalty Interest, Override Royalty Interest
Location
• County(ST): ATASCOSA(TX), BURLESON(TX), COOKE(TX), HUGHES(OK), KARNES(TX), MONTAGUE(TX), PITTSBURG(OK), POLK(TX), VAN ZANDT(TX), YOAKUM(TX)
• Formations: 6700, AUSTIN CHALK, AUSTIN CHALK-3, BARNETT SHALE, CLEAR FORK, CROMWELL, EAGLE FORD, EAGLE FORD-2, EDWARDS LIME -A-, LOWER, RODESSA, WILCOX DEEP, WOODFORD
Production Breakdown
• 56.51% - Oil • 25.68% - Gas • 17.82% - NGL
Cash Flow
• $1,369.59 Per Month
Operator(s)/Payor(s)
• CHESAPEAKE ENERGY, EOG RESOURCES, EXXON MOBIL, INC, JAMEX, OCCIDENTAL PETROLEUM, TRINITY OPERATING, UNIT
Package Price: $100,000.00