Dallas, TX, June 26, 2017 --(PR.com
)-- Resource Royalty, LLC, an investment company founded by Gary Redwine and Bob Howard in 2010, announces the divestment of Resource Royalty Fund, LLC (2011)—making it the first fund to go “full-cycle.”
Resource Royalty Fund, LLC (2011) distributed 61% to its limited partners over a 51/2-fund life prior to the final disposition of assets. Assets were sold in the first quarter of 2017 and limited partners subsequently received disposition proceeds equaling 101% of their original investment. Limited partners received a total return of investment of 162% over the period.
The fund portfolio consisted of 11 royalty properties in the Cana-Woodford region of Central Oklahoma. The majority of the properties were operated by Devon Energy, a multi-billion dollar NYSE-listed operator. Devon has drilled over 500 wells in the region and recently announced that the region contains multiple layers of oil and gas bearing rock. The region is now called the “Stack Play,” and is one of the most active regions in the US with 36 working drilling rigs.
Company management said, “The successful full-cycle of Resource Royalty Fund, LLC is a clear example of our acquisition philosophy where we target the most active oil regions of the country under the best operators. The dramatic increase in wells on the properties offset the big decline in commodity prices.”
The property portfolio had a diversified commodity mix, receiving income from oil, natural gas, and natural gas liquids. At the time the properties were sold, the properties were receiving royalty income from 40 wells—a significant increase from the six producing wells when they were purchased in 2011.
Considering that the oil price was $90-$100/bbl when acquired and $40-$50 when sold, fund results are impressive. One of the keys to the success of the fund is proper portfolio diversification and astute diligence on choosing locations where additional wells would be drilled.
“Our properties have current income and significant growth potential. This helps ensure capital preservation and appreciation for our limited partners and works to combat the variable nature of commodity prices and production levels. We have built nine funds using this solid principle,” said management.
The General Partner, Resource Royalty, LLC, utilizes decades of oil and gas experience to create highly strategic and diversified royalty and mineral investment partnerships. Its team of skilled investment and private equity professionals, as well as mineral acquisition analysts, work together to provide developmental royalty partnerships and 1031 exchange solutions to investors. As of June 5th, 2017, the company has offered nine funds and several institutional transactions, totaling in excess of $100M.
For more information, contact:
Bob Howard, Managing Member, at (214)-691-5234, or visit resourceroyaltyllc.com