Oil and Gas Royalty Interests |
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| Oil and Gas Royalty Interests | Oil and Gas Royalty Interests As of December 31, 2025 and 2024, the net book value of the oil and gas royalty interests we owned was as follows (in thousands):
(1)Royalty interests assigned through the Declaration of Trust dated February 1, 1888. Nonparticipating perpetual royalty interests in 185,369 NRA as of December 31, 2025 and 2024.
(2)Royalty interests assigned through the Declaration of Trust dated February 1, 1888. Nonparticipating perpetual royalty interests in 5,308 NRA as of December 31, 2025 and 2024.
(3)Royalty interest in 33,380 and 15,897 NRA as of December 31, 2025 and 2024, respectively.
Royalty Interests Assigned Through the Declaration of Trust
The fair market value of the Trust’s Assigned royalty interests was not determined in 1888 when the Trust was formed, and accordingly, the Assigned royalty interests were recorded with no value. See Note 2, “Summary of Significant Accounting Policies — Real Estate and Royalty Interests Assigned Through the Declaration of Trust” for further information regarding the Assigned royalty interests. The Assigned royalty interests include 1/16th and 1/128th royalty interests.
Royalty Interest Transactions
We completed the following acquisitions during the year ended December 31, 2025:
•In March 2025, we acquired oil and gas royalty interests in 177 NRA for a purchase price of $3.5 million, net of post-closing adjustments, in an all-cash transaction.
•In November 2025, we acquired 17,306 NRA for an aggregate purchase price of $450.7 million, net of post-closing adjustments, in an all-cash transaction.
For the year ended December 31, 2024, we completed two separate acquisitions of oil and gas royalty interests, acquiring a total of 11,596 NRA for an aggregate purchase price of $395.5 million, net of post-closing adjustments, in all-cash transactions. During the year ended December 31, 2025, we received a $3.9 million post-closing adjustment from the seller related to curative title defects.
Depletion expense was $42.7 million, $9.8 million, and $2.0 million for the years ended December 31, 2025, 2024, and 2023, respectively.
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