The New Playbook for Mineral Investors

Yeah, I mean, guide me if we get off course here, but just triple net lease of oil and gas is how I describe mineral rights.

Triple net lease is, of course, being like a real estate investment that doesn't really have any associated costs.

So that's the biggest appeal for people who come from real estate is dealing with the headaches, tenants, toilets, all that crap.

Typically, minerals don't use any debt.

So that's attractive compared to real estate, which is highly levered.

Typically, anywhere from 50% to 80% of a real estate deal will be leveraged.

So when interest rates spike up, if you're over levered, it can be challenging.

And with minerals, you wait because you're not interest rate sensitive.

And then when we're inflationary periods, which...

You know, you could look at statistics.

It doesn't really matter the amount of money we're printing.

Everything that we earn in U.S. dollars is inherently inflationary.

So everyone at this table and who works for oil and gas companies are going to have to get paid more and more in actual dollars to Go and drill the wells, maintain them, underwrite them, do the engineering, whatever it is.

And that flows through to the margins, the operating margins.

And as a mineral owner, you're getting paid first off the top of the revenue without any exposure to cost.

So it's an inflation hedge.

So kind of just high-level macro, like inflation hedge, kind of like an interest rate environment hedge, if you may, analogous to triple net leases.

That's how I always talk to investors about it and how they can understand it.

Nice, nice.

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