Texas Endowment Billion Dollar Royalties

“Mineral rights are also seen as a relatively low-risk way to get exposure to energy and generate income compared with buying shares in drillers or taking stakes through private equity funds.

The University of Texas controls 2.1 million acres of land in the Permian, which generated a record 5.3 million barrels in July as drillers built longer and longer horizontal wells to frack. The companies paid out a little more than $1 billion of royalties to the state school endowments in the year through August, the most since 2014 when oil prices topped $100 a barrel.”

You can do a lot with a billion in royalties: new campus buildings, more faculty, and (at least) more scholarships.

Bloomberg article on Texas Endowment

Forbes article on the Permanent University Fund

The University of Texas at Austin

Post by Marcelino Pantoja