Few investors have not seen, heard or felt the impact of the recent roller coaster in mineral income/values. Whiles income from producing minerals in Western Kansas, namely natural gas have dropped drastically (50% reductions in our area) values have not quite followed suit. Investors are still paying good prices for minerals in our area. While in 2008 we saw sales of minerals at 8-12 times this year we have seen sales as high as 18 times income. Whiles I do not believe this trend will continue, I do believe minerals will continue to sell well. I believe there will be an increase in production and income in the coming years to improve sales prices drastically while decreasing the multiples we saw last year.
No matter what happens the gas field in Southwest Kansas, the Hugoton field, will continue to be a strong investment yielding stronger sales figures than other regions of the country. The Hugoton field has been around for over 50 years and still continues to produce.
Please contact me or my father, Mark Faulkner, should you have any questions regarding the value of producing minerals in Western Kansas.
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