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The
land, known as the Mabee Ranch after late farmer-turned-oilman
John Mabee who bought into it in 1932, is leased to energy
producers including ConocoPhillips, Diamondback Energy Inc and
Pioneer Natural Resources Co.
It is owned by relatives of Mabee, who died in 1961, with a
stake also held by a charitable foundation he set up with his
wife, Lottie.
The sources did not discuss the expected price of the site, but
said it was expected to generate around $575 million of free
cash flow in 2023 from royalties collected on oil and gas
production alone.
The family had decided to cash out and distribute the property's
worth to those relatives with stakes, the sources said,
cautioning no deal was guaranteed. The sources spoke on
condition of anonymity to discuss confidential information.
Representatives for the Mabee Ranch did not respond to a comment
request.
U.S. crude prices have receded from the 14-year high hit in
March following Russia's invasion of Ukraine, but remain
elevated.
The family is working with advisers to consider options that
include the sale of the surface rights to work the land and
mineral rights to extract oil and gas from it, as well as
pipeline infrastructure supporting production, the sources said.
The buyer could use the rights or license them to others.
Should a sale happen, much of the value would go to family
members, while some would go to the foundation, they added. The
foundation's website says it has deployed nearly $1.3 billion
since 1948, mainly funding healthcare, education, and religious
buildings in six states including Texas, Oklahoma and Missouri.
(Reporting by Shariq Khan in Bengaluru and David French in New
York; Editing by Peter Graff)
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