landowner

Adamas Royalties?

Are the Adamas Royalty Checks and Deposits running late for May?

I have active Wells in three Counties, however haven't seen any Royalty Payments for this month

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Oil & Gas ProPermalink Reply by Skip Peel - Mineral Consultant 22 hours ago

Adamas acquired a lot of producing wells/units in multiple states when they bought Aethon.  The largest department for O&G operators is accounting.  In past sales of this size there have been delays in paying royalty.  Royalty payments usually pick back up in a few months.  I  would expect that they would resume by June or July.  Just be patient.


landownerPermalink Reply by Mike Wilson 6 hours ago

We got our Adamas direct deposit check on time or even a day or two early at the end of May.


Oil & Gas ProPermalink Reply by Skip Peel - Mineral Consultant 6 hours ago

Thanks, Mike.  Did that deposit include a new well or wells?  I think we are specifically discussing payment on new wells but Bill can correct me if I am mistaken.  New wells often take a few months to appear on statements.  Older wells should appear each month unless they have been shut in.

Some years ago we went through a period of several months where there were corrections to the payment decimals on HC wells reported by members.  That was when the state first allowed those long lateral, multi unit wells to be drilled.  The problem appeared to be faulty division orders and payment decimals.  Drilling longer wells under those problem division orders and royalty payment decimals were, I think, an issue with accounting and legal.  A number of HA operators made changes to ensure that payments on those HC wells were correct growing forward.  I do not recall if Aethon was one of those HA operators I refer to.


landownerPermalink Reply by Mike Wilson 5 hours ago

No, it is an existing well. 


Oil & Gas ProPermalink Reply by Skip Peel - Mineral Consultant 5 hours ago

Thanks.  I thought that might be the case.

Permalink Reply by Jesse Joyner 4 hours ago

Bill R -- my Adamas royalty ACH was paid on time for May in regards to my family's holdings in Louisiana (i.e., for south Bossier Parish). Maybe there was only a payment delay for the Adamas mineral owners in Texas. As Skip has explained, in the past the various operators over the years, which have acquired ownership of our south Bossier Parish wells (somewhat like real estate flippers pumping in money before closing a sale) -- sometimes will have short delays on their monthly payouts. I'm guessing this flub will be corrected soon. It never hurts to call the home office and complain.     


landownerPermalink Reply by Les 4 hours ago

I received my south Bossier Adamas royalty check on time but it was HALF the amount of my April check. 


Oil & Gas ProPermalink Reply by Skip Peel - Mineral Consultant 4 hours ago

Les, did the gross price of natural gas change from April to May?  How about the deductions?  I would like all our members to learn to read a royalty statement.  Mistakes get made and if you don't catch it, it will go unresolved.  The very first thing that all members should do is find the unit survey for their section and calculate the correct eight digit decimal that they are paid on.  For long lateral wells producing from more than one section, you need to go to SONRIS and see what percentage of the perforated lateral lies in your unit.  Then use that to adjust your unit decimal to compare to the well decimal.

The math:  your tract acreage divided by the unit acreage times your royalty fraction.  Discrepancies in the last three digits of the payment decimal are not significant and usually due to rounding.


landownerPermalink Reply by Mike Wilson 2 hours ago

 

Hi Skip, when we first started receiving our checks from Aethon on our well in Robertson County in the Western Haynesville, I couldn't get our decimal interest to rectify. Our deed is for 149.2 acres but according to the pool size in the permit and the plat listed in the permit I showed we were only being paid for 144 acres. So I contacted Aethon. They were very responsive and they provided an updated plat that I could not find in the permit or the RRC site. The plat showed there is more acres in the pool than the number listed in the permit. But when I took the new plat they provided our decimal came up correct.

Every month I compare the numbers Aethon/Adamas report on the CONG site to our check to see if they are close. I C&P the CONG site info into a spreadsheet. This gives me an idea of what size our check should be several days before we get notified by Energylink. Normally it comes out pretty close but I don't know how to verify the production costs they deduct from our check and just have to take their word for it. Also I just have to take their word for the price they pay us for gas which always seems too cheap to me of course. This last check was for March gas and it was a little more than 1/3 the amount of the previous check that was for February gas even though production was up slightly in March. 

We receive royalty checks from three wells all in Robertson County and all from different companies (Adamas, Comstock and Eagle Oil and Gas). One thing I have thought about working on is a report showing the difference in the price we are paid for gas by each company every month but I have a feeling the results will just leave me frustrated.


Oil & Gas ProPermalink Reply by Skip Peel - Mineral Consultant 1 hour ago

Mike, props for being an engaged and knowledgeable mineral lessor.  I post the monthly settlement price at the end of each month.  You've reminded me to do that again.  I've been busy.  The Henry Hub price is what I post.  Not the spot price or the futures price as the settlement is for physical gas sales.  That price is a "basis" which means that the actual price paid is a negotiated discount to it.  The gross price on royalty statements is always something less than the posted settlement price.  Sometimes disturbingly less but it is a black box for those trying to figure out what they are getting paid.  Since each of your three operators are negotiating their price, they should be close to agreement but I haven't done a deep dive on that.  I try to work on things that I know and think I can make a difference on.  We're dealing with a market here that is hard to understand and navigate.  Texas O&G data can be tough to navigate.  Louisiana is much easier but no less opaque. Good luck.

Permalink Reply by Jesse Joyner 4 hours ago

Les, I'm guessing that --> your low April check was due to the bottom falling out of NG in that timeframe of production. Note: the NG future's market has now corrected upward (since that downward trend) . . . with all months for the rest of 2026 to be priced above $3. That's always good news for future royalty payments. Hope springs eternal.   


landownerPermalink Reply by Bill R 4 hours ago

When these Wells were being paid by Aethon, we never had any issues... after the buyout and Adamas, it seems like a lot of new issues keep arising like additional deductions, Royalty adjustments, cancelled and reissued payment and now, non payments of Royalties.  This issue is on old existing units, new units and Bonus Monies on new Division Orders. I was just wondering if others were having issues as well as all of the other Oil&Gas have already issued their May Deposits or Checks, only Adamas is lagging.

Like normal, I am full of questions and Adamas is not quick at responding to questions {Crickets) when contacted.  ... 

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