We realize that to be successful in this highly competitive industry value must be recognized, projected, and credited above current production. Therefore, our engineers carefully analyze every property we evaluate and attempt to identify future development potential that adds incremental value accretive to current production. Desert Partners has invested over $200,000,000 since 2005. The philosophy of Desert Royalty Company is to make fair buys on good properties and not great buys on fair properties.
1031 “Tax Free” Exchanges: In the event you are divesting a property with a low basis it may be advisable to explore a 1031 Exchange. Minerals are classified as real estate and as such the proceeds from sales may be reinvested in land, income producing property or other oil and gas assets without payment of federal income taxes. We can introduce you to the leading qualified intermediaries in the exchange industry who can help facilitate a 1031 exchange should you elect to do so.
704 Elections: As a limited partnership we have the flexibility of offering units in our partnership in exchange for a specific property a seller may wish to divest. This will allow the seller to diversify his ownership from a singular asset into a large portfolio of royalties producing from 1000s of wells in multiple states. Transactions that incorporate a 704 election may also include cash for a portion of the consideration if the needs of the seller dictate. The 704 option is only used to facilitate larger transactions.