We assign income producing assets a present value based upon a multiple of their monthly, or quarterly cash flow. For oil & gas related assets, we also consider the size of the interest, historical resource decline curves, current energy prices and volatility, and the local regulatory environment. Our offers are typically 40 to 90 times average monthly cash flow.
For non-income producing assets such as non-producing mineral rights, our offers will be on a per acre basis and will take the underlying geology, nearby permits, and size of interest into consideration.
For all other assets, including partnerships and private stock, our values will be based upon a multiple of distributions or book value of underlying assets.
