Oil and gas royalty owner financial model, built free.
A three-statement Excel model for an oil and gas mineral and royalty owner, built from your own figures and checked to balance.
- Free account
- No card
- Usually ready within the hour
We use generative AI in parts of our process, so mistakes can occur. Every model should be checked by a person before it is relied on. Read more
Owns mineral rights, overriding royalties or net profits interests under acreage operated by others, earning a share of production revenue without paying capital or operating costs.
In short
- 01
Three linked statements
Income statement, balance sheet and cash flow, linked in every period.
- 02
Valued three ways
Discounted cash flow, trading multiples and net asset value, side by side.
- 03
Monthly to annual
Monthly, quarterly, half-yearly or annual periods, for up to 30 years.
- 04
Checked every period
A Checks sheet shows the balance sheet balances and the cash reconciles.
The sample, as Excel draws it.
Built by the same system and checks as yours, on illustrative figures: every sheet as Excel draws it, or live.
Illustrative figures: the sample describes no real business. The live preview shows values; your model’s Excel file has every formula.
How the model works for an oil and gas royalty owner.
- How it earns revenue2 formulasOil, gas and LNG sales · Oil and gas asset 1Oil, gas and LNG salesOil, condensate and NGL salesGas salesRevenue (top-down) · Across the businessRevenueUnits soldAverage price
- What drives its costs3 formulasRoyalties and resource taxes · Oil and gas asset 1RoyaltiesWellhead valueRoyalty rateProduction costs · Oil and gas asset 1Production costsNet productionfrom productionProduction cost per boeDirect costs (top-down) · Across the businessCost of salesRevenuefrom statementsGross margin
- What it invests in3 formulasCapex, depletion and exploration · Oil and gas asset 1Development and sustaining capexSustaining capexGrowth capexCapex, depletion and exploration · Oil and gas asset 1Depletion (units of production)Opening net book valueDevelopment and sustaining capexShare of the reserves producedCapex, depletion and exploration · Oil and gas asset 1Closing net book valueOpening net book valueDevelopment and sustaining capexDepletion (units of production)
- How it is funded3 formulasDebtRepaymentsScheduled repaymentsPrepayments from an equity raise and the cash sweepDebtClosing balanceOpening balanceDrawdownsRepaymentsDebtInterest expenseOpening balanceAll-in interest rateshare of the year
- How profit becomes cash3 formulasWorking capitalTrade receivablesRevenuefrom statementsDebtor daysDays in periodWorking capitalInventoryDirect costs (positive)from statementsInventory daysDays in periodWorking capitalTrade payablesCash operating costs (positive)from statementsCreditor daysDays in period
22 parts, each one tested.
Every part is a tested building block with its own checks: yours is put together from the ones your business needs.
- CPI forecastConsensus curve with long-run anchor
- Revenue (top-down)Price × volume
- Direct costs (top-down)Gross margin %
- Corporate costsFixed cost base indexed to CPI
- Working capitalFull working capital
- Income taxCorporate rate with tax losses
- DebtAmortising term loan
- Equity raisingDistribution reinvestment plan
- Dividends and distributionsPayout of net profit
- Discounted cash flow valuationDCF on free cash flow to the firm
- Multiples valuationEV / EBITDA multiple
- Net asset valueBook net asset value
- Energy and utility KPIsUpstream unit metricsThe ratios investors and lenders use to judge energy and utility businesses.
- Key-metric summaryLast-twelve-month and run-rate metrics
- Discount rate (WACC)CAPM at target gearing
- Exchange rate (US dollar)Flat exchange rate
- Field and project registerInterest, reserves and book valueWorking interest, reserves and carrying value of each field or LNG project.
- ProductionExponential declineOil, gas and LNG volumes produced each period (net to the company's interest).
- Oil, gas and LNG salesBenchmark × differential by productRealised prices × volumes for oil, condensate, gas and LNG.
- Royalties and resource taxesRoyalty on wellhead valueGovernment and private royalties, production sharing and petroleum resource taxes.
- Production costsCost per boeLifting, processing, transport and liquefaction costs.
- Capex, depletion and explorationUnits-of-production depletionDevelopment and sustaining capex, exploration spend, and depletion of oil and gas properties.
The numbers it tracks.
- 01net royalty acres
- 02royalty production (boe/d)
- 03wells turned in line
- 04cash available for distribution
- 05acquisitions
- 06payout ratio
What it is used for.
- Operating forecastGuide · Financial projections
- ValuationGuide · DCF valuation model
- Equity capital raisingGuide · Startup financial model
- Lending and credit analysisGuide · Three-statement model
- Merger or acquisition (strategic)Guide · Financial modelling services
- Scenarios and sensitivities
- Asset acquisition
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Looking for an oil and gas royalty owner financial model template? Ours arrives built for your business, with your figures in it.
See a finished model, sheet by sheetThe sample is built on illustrative figures and describes no real business. Models are calculations prepared from the information you provide. They are not financial advice and must be independently verified. See our terms.