Taking a different approach to the oil and gas industry, Phoenix Capital Group is expanding into new territories and acquiring mineral rights rather than making speculative investments.
DENVER, CO, Aug. 01, 2022 (GLOBE NEWSWIRE) — The key to long-term growth in the oil and gas industry is consistently acquiring mineral rights that turn into profitable endeavors. This can prove to be a complex enterprise, as companies never truly know what will come out of a well.
This challenge is one that Phoenix Capital Group has been tackling head-on and is doing with remarkable success.
Thanks to an entire department at the company dedicated to this process — what the company calls its title factory — Phoenix Capital Group sets itself apart from the competition. The process allows the company to accurately forecast the output of mineral rights across the country, from the North Dakota border with Canada down to the Texas border with Mexico.
But, more so than accurate forecasting, the company’s focus on owning the real asset of the mineral rights allows it not to be a speculative business. It’s a primary reason why Phoenix Capital Group has remained profitable even during the COVID-19 pandemic when much of the industry was experiencing significant losses.
“I’m grateful for the team at Phoenix as we put our heads together to weather the storm,” said Lindsey Wilson, the chief operating officer and founding member of Phoenix Capital Group. “We were able to navigate this volatility and remain profitable without draconian cuts to our business.”
Phoenix Capital Group invests significant time, energy, and resources in verifying mineral rights ownership throughout the country. The company has a team of 50 employees and contractors that do nothing but solve puzzles related to who owns which mineral rights.
Unlike typical property ownership, which can be found with simple property searches, verifying mineral rights ownership may involve scanning and analyzing physical documents from the 1800s at local courthouses. It’s a process other companies won’t complete or don’t have the resources to complete, which puts Phoenix Capital Group in the advantageous position to own assets that produce real value.
As someone with first-hand industry experience, Wilson knows how important the relationship with mineral rights owners is. As she explains:
“The golden rule always applies. For mineral owners and investors alike — we consider it a partnership. I am also rooted in this industry, with my family owning minerals, like most folks we communicate with at Phoenix Capital Group.
“I understand that the minerals have sentimental value to some people, and that process can be very emotional. Having experienced this from a landowner’s lens allows me to understand the process outside of a company mindset.”
Using that mindset, Phoenix Capital Group continues to expand and purchase property with oil and gas in predictable volumes in the ground, earning its investors substantially above-market yields.