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New Mexico · Permian Basin · Delaware Sub-Basin

Sell Mineral Rights
in Lea County,
New Mexico.

Lea County is the largest oil-producing county in the United States. It crossed one million barrels per day in 2023, the first US county ever to do so. If you own mineral rights here, you are sitting on the most active onshore oil play in the country. We are happy to help you understand what you have.

1MMbpd
First US County
Crossed in 2023
~10,000ft
Wolfcamp Depth
typical TVD
10,000ft
Standard Lateral
with longer pilots
Multiple
Stacked Targets
Wolfcamp A/B, Bone Spring, Avalon
Statelands
NM Land Office
Major mineral owner
01 The Basin

The most productive
onshore oil county.

Lea County sits in the southeastern corner of New Mexico, in the heart of the Delaware sub-basin of the Permian. The Permian as a whole is the largest oil-producing basin in the United States, and within the Permian, the Delaware sub-basin is the most active. Within the Delaware, Lea County leads.

In 2023 Lea County became the first US county to produce more than one million barrels of oil per day. Together with neighboring Eddy County, it accounted for roughly 17 percent of all onshore oil production in the contiguous United States that year. Operators have responded by completing more wells in the New Mexico Permian than ever before, and the state's tax base, public schools, and Land Grant Permanent Fund are funded substantially by Lea and Eddy production.

Lea County is the most active oil county in the US right now. The economics drive consolidation, infill drilling, and continuing infrastructure investment that is unusual to see in any one place at one time.

If you are reading this, you may own a piece of that. Maybe you inherited minerals through a chain that goes back to original homestead patents or old family farms. Maybe you have been receiving royalty checks for decades. Maybe an operator just sent you a letter asking to lease unleased acreage. This page walks through the rock, the operators, the geography, valuation, and the regulatory landscape including the substantial role of New Mexico State Land Office acreage.

Starting point

Have minerals in Lea County? Send us what you have and we will take a look.

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02 The Rock

Stacked pay across the
Permian column.

Lea County's productive geology is uniquely stacked. The Wolfcamp formation, divided into Wolfcamp A, B, C, and D benches, is the deepest active target. Above it sit the three Bone Spring sands, then the Avalon shale, then the Yeso and Glorieta closer to surface. Modern operators routinely develop multiple zones from the same surface pad, with some pads supporting more than ten wells targeting different formations.

WolfcampPermian unconventional core

The Wolfcamp formation is the deepest and most productive unconventional target in Lea County. It is divided into multiple distinct benches (Wolfcamp A, B, C, and D), each capable of supporting horizontal development. Wolfcamp A and B are the primary current targets, with operators drilling multiple horizontals per spacing unit across the two benches.

For mineral owners, Wolfcamp development typically means multiple wells per spacing unit drilled over the life of development, with each well representing a separate revenue stream tied to the same minerals. Modern Wolfcamp completions use very large amounts of proppant and have steeper initial decline curves than older vintage wells.

Depth Range
9,000 to 12,000 ft
Type
Calcareous mudstone
Active Benches
Wolfcamp A and B primarily
Typical Lateral
10,000 ft, longer pilots
Bone Spring1st, 2nd, and 3rd Sands

Above the Wolfcamp sit the three Bone Spring sands, each a separate horizontal target. The 2nd and 3rd Bone Spring are the most consistently developed, but the 1st Bone Spring also produces meaningfully across parts of Lea County. Some spacing units have horizontals in all three Bone Spring intervals plus multiple Wolfcamp wells, leading to twelve or more total wells per surface unit.

For mineral owners, Bone Spring inventory is one of the reasons Lea County valuations carry strong multiples. The depth of remaining locations across multiple intervals supports continued royalty income for many years even after early Wolfcamp development is complete.

Depth Range
7,500 to 10,000 ft
Type
Mixed sandstones and shales
Active Sands
1st, 2nd, 3rd
Status
Heavily developed
Avalon & Shallower Targetssecondary horizons

Above the Bone Spring, the Avalon shale and shallower formations including the Yeso, Glorieta, and Abo intervals also produce in parts of Lea County. The Avalon has been an inconsistent horizontal target across the basin but produces well in certain areas. Older vertical production from shallower zones still continues across many parts of the county.

The practical implication for mineral owners is that even spacing units with extensive Wolfcamp and Bone Spring development may have additional inventory in shallower zones, plus legacy vertical production that continues to generate income.

Avalon Depth
~7,000 ft
Yeso/Glorieta Depth
3,500 to 5,500 ft
Status
Selective horizontal, legacy vertical
Where Active
Variable across county
03 The Operators

Who is drilling on your
Lea County minerals.

The Permian Basin operator landscape consolidated dramatically through 2023 and 2024, with multiple multi-billion-dollar mergers reshaping the operator list. The five operators below are leaders in current Lea County activity, but Lea has many more meaningful operators than this list captures.

i.
Devon Energy
Devon Energy is one of the largest Lea County operators by net production and active rig count. Devon's New Mexico position is concentrated in the Delaware Basin core, with extensive Wolfcamp and Bone Spring development across the county. The company expanded its position through the 2024 acquisition of Grayson Mill assets in the Bakken, with capital partially redirected to Permian.
Public · Major NM operator
Top 5 in Lea
ii.
Permian Resources
Permian Resources, formed by the 2022 merger of Centennial Resource Development and Colgate Energy, has built one of the largest pure-play Delaware Basin positions. The company expanded further with the 2023 acquisition of Earthstone Energy. Permian Resources holds significant Lea County acreage and is among the most active drillers.
Public · Pure-play Delaware
Top 5 in Lea
iii.
Mewbourne Oil Company
Mewbourne is one of the largest private operators in the Lea and Eddy area. The company has been a consistent Permian developer for decades, with substantial leasehold across both counties. Privately held operators like Mewbourne report less public information than the majors, but Mewbourne's drilling pace and well results have been consistent.
Private · Major Permian
Top Private Operator
iv.
ConocoPhillips & Coterra
ConocoPhillips holds substantial Lea County acreage from its 2021 acquisition of Concho Resources. Coterra Energy, formed by the 2021 merger of Cabot Oil and Cimarex, holds another significant position. Both are large public producers actively developing Wolfcamp and Bone Spring inventory across the county.
Major · Concho / Cimarex legacy
Top 5 Combined
v.
Long Tail of Public and Private Operators
Lea County has many additional meaningful operators including ExxonMobil through XTO Energy and the 2024 Pioneer acquisition, Chevron, Diamondback Energy (now combined with Endeavor Energy Resources), Continental Resources, Marathon (now ConocoPhillips), Matador Resources, EOG Resources, and various private operators. Mineral owners may see different operator names on different wells within the same general area depending on which operator drilled which spacing unit.
Mixed · Many active
Many Active Operators
See a familiar name?

We know how these operators develop in Lea County. Happy to give you context on yours.

Ask About Your Operator →
04 The Geography

Not all Lea County
minerals are built the same.

Lea County covers about 4,400 square miles across the southeastern corner of New Mexico. The Wolfcamp and Bone Spring trends run through the central and southern parts of the county, with productivity varying meaningfully by township. Hobbs is the largest city and regional service hub. Where in the county your minerals sit shapes everything from operator activity to formation depth and quality.

Hobbs Core
T18S-T20S R37E-R39E
The geographic and operational center of southern Lea County. Hobbs is the regional service hub. Spacing units in this area have typically seen extensive Wolfcamp and Bone Spring development, with many already at multi-vintage well counts. Remaining inventory is meaningful given the depth of stacked pay.
Activity: Highest Development: Mature, infill
Northern Shelf
T9S-T13S R32E-R36E
Northern Lea County sits along the northwestern shelf of the Delaware Basin. Activity here transitions toward shallower formations, with Wolfcamp depth and reservoir quality differing from the southern core. Some areas have meaningful shallower vertical production legacy.
Activity: Moderate Development: Mixed, selective
Eastern Lea / Texas Border
T18S-T26S R38E-R39E
Eastern Lea runs to the Texas state line near the Texas Permian. Activity here is high, with operators drilling across the state line where geology permits. Cross-state spacing unit considerations occasionally affect leasing dynamics for owners near the border.
Activity: High Development: Active
Southern Lea / Eddy Border
T22S-T26S R30E-R36E
Southern Lea transitions toward Eddy County and the deeper Delaware Basin core. Wolfcamp quality is generally strong here, with operators drilling continuously across the county boundary. Many spacing units sit in active rotation.
Activity: High Development: Active
State Land Office Acreage
Scattered · Statewide
The New Mexico State Land Office is one of the largest mineral owners in Lea County. State acreage was granted to New Mexico at statehood and is held in trust to fund public schools and other state programs. Mineral interests adjacent to or surrounded by state land may interact with state leasing dynamics that differ from purely private acreage.
Activity: Active state lease auctions Development: Major mineral owner
Western Lea / Chaves Border
T15S-T22S R30E-R32E
Western Lea transitions toward the Permian's western flank and Chaves County. Activity thins toward the basin edge, but selective drilling continues where geology supports it. Mineral interests here are valued more on optionality than current activity.
Activity: Moderate to Light Development: Selective
05 Your Valuation

What your Lea County
mineral rights are worth.

Valuation in Lea County reflects what is genuinely the most active onshore oil county in the US. Multiple stacked formations, deep remaining inventory, well-capitalized operators, and consistent infrastructure investment all support strong mineral valuations. The four scenarios below cover what we see most often.

01
Producing Minerals with Active Royalty Income
Valued on cash flow plus deep remaining inventory
If your Lea County minerals are actively producing, valuation typically starts with the trailing twelve months of royalty income. A buyer applies a multiple based on expected remaining well life, future drilling potential across stacked Wolfcamp and Bone Spring intervals, and commodity outlook. Lea County multiples tend to be among the highest in the country because the inventory depth supports decades of additional development on most spacing units.
What shapes the number: well vintage and remaining life across multiple existing wells, how many additional Wolfcamp and Bone Spring locations remain undrilled, your royalty rate, the operator quality, and your lease cost-deduction language.
02
Unleased Minerals in Active Development
Valued on drilling proximity and future potential
Unleased Lea County minerals, particularly in the Hobbs core, southern Lea, or active operator footprints, are valued aggressively on expected development timing. Operators are competing for acreage across the county, which supports strong lease bonus and royalty rate negotiations. Unleased minerals also carry optionality.
What shapes the number: nearby permit activity, the operator's recent drilling pace in your township, formation quality beneath your specific section, comparable lease bonuses paid on surrounding tracts, and whether the section is part of an operator's near-term drilling plan.
03
Small Fractional Interests & Inherited Positions
Often worth substantially more than expected
Many Lea County mineral owners hold small fractional interests inherited across multiple generations, often spread across heirs in different states. Lea's deep stacked pay and high operator activity mean even small fractional interests can carry meaningful value. We pay these interests the same attention as larger ones and are comfortable doing the title research, including chains that go back to original homestead patents.
What shapes the number: net mineral acre count, royalty rate if leased, producing status, accumulated unpaid suspense (sometimes meaningful for inherited interests), and whether other heirs holding the same chain are also active.
04
Leased but Not Yet Producing
Valued on lease terms and proximity to activity
If your Lea County minerals are leased but not yet producing, value depends substantially on the lease terms and how quickly the operator is moving toward drilling. Permian leases typically have three to five year primary terms with extension by production. A lease held by an active major operator is worth materially more than one held by a passive leaseholder waiting on conditions.
What shapes the number: your royalty rate, primary term expiration, the specific operator holding the lease, recent drilling activity in adjacent spacing units, and whether your lease has a Pugh clause or similar acreage-protection language.
Your specific situation

We would rather look at real facts than speak in generalities. Send us what you have.

Request an Analysis →
06 The Regulatory Landscape

New Mexico rules,
Permian realities.

Lea County operates under the New Mexico oil and gas regime, administered primarily by the New Mexico Oil Conservation Division. The on-the-ground realities reflect the substantial role of the New Mexico State Land Office as a mineral owner, the BLM Carlsbad and Hobbs field offices for federal minerals, and increasingly active state-level regulation around methane emissions and water use.

The NMOCD and how spacing works

The New Mexico Oil Conservation Division (NMOCD), part of the Energy, Minerals and Natural Resources Department, regulates oil and gas activity on state and private minerals in Lea County. NMOCD permits wells, conducts hearings on spacing and unitization applications, and maintains the public well database. New Mexico has historically used 320 and 640 acre spacing for some legacy patterns, but modern horizontal development typically uses larger units that match two-mile or longer laterals.

The New Mexico State Land Office and trust lands

The New Mexico State Land Office is one of the largest mineral owners in Lea County. State trust lands were granted to New Mexico at statehood and are held to fund public schools, universities, and other state programs. State land is leased through public auctions held by the Land Office. Royalties on state mineral production flow into the Land Grant Permanent Fund. If your minerals are adjacent to or surrounded by state acreage, the state's leasing dynamics may affect your situation.

BLM Carlsbad / Hobbs and federal minerals

Federal minerals in Lea County are primarily administered by the BLM Carlsbad Field Office, with some Hobbs district coverage. Federal lease sales are conducted quarterly. Standard federal lease royalty rates are 12.5 percent for older leases and 16.67 percent for newer leases under the Inflation Reduction Act. New Mexico federal minerals are now being leased under the higher royalty rates.

Methane rules and cost deductions

New Mexico has been one of the more active states in regulating methane emissions and venting, with rules that have shaped operator economics and infrastructure investment. Royalty owners may see cost deductions related to gas processing, gathering, and compliance with state rules depending on lease language. Reading your specific lease's post-production cost language matters in New Mexico.

07 Questions We Hear Often

The real questions
mineral owners ask.

We have been through these conversations hundreds of times. Below are honest answers to the things people actually want to know.

01
How much are mineral rights worth in Lea County, New Mexico?
Values in Lea County tend to carry among the strongest multiples of any oil county in the country, because the stacked Wolfcamp and Bone Spring inventory supports decades of additional drilling on most spacing units. That said, values vary widely depending on where in the county you own, whether your minerals are leased or producing, the operator, your royalty rate, and lease cost-deduction language. The only way to know what your specific minerals are worth is to look at the actual facts. We are happy to do that for you, at no cost and with no obligation to sell.
02
Why is Lea County the largest oil-producing county in the country?
Three reasons. First, the Delaware sub-basin of the Permian has unusually thick stacked unconventional reservoirs, particularly Wolfcamp and Bone Spring. Second, modern horizontal drilling and completion technology have unlocked these reservoirs at scale. Third, infrastructure (pipelines, processing capacity, takeaway) has been built out to keep up with production. The combination produces consistent operator activity that no other US oil county currently matches.
03
I inherited mineral rights in Lea County but I do not have any documents. What do I do?
You are not alone. This is a common situation. Start by gathering anything you do have: old letters from operators, tax statements, probate records, royalty stubs, division orders. The Lea County Clerk's office in Lovington keeps deed records. The NMOCD maintains a public database of wells, operators, and production. We can usually identify what someone owns with just a name and a rough idea of where the minerals are located, because New Mexico mineral records are publicly accessible.
04
Should I sell my Lea County mineral rights now or hold them?
That depends on your situation. People who hold typically want long-term royalty income, do not need cash for other priorities, and are comfortable with commodity price volatility. People who sell typically want to convert future uncertain income into certain present value, simplify their estate, or use the capital for something else. Lea County's deep stacked-pay inventory makes the holding case strong, but the same characteristics also support strong sale valuations. Neither is wrong. We can help you think through the tradeoffs without pressure to pick a side.
05
What is the difference between an offer to lease and an offer to buy my minerals?
Leasing gives an operator the right to develop your minerals for a period of time, typically three to five years, with extension if production is established. In exchange you receive a bonus payment per net mineral acre and a royalty percentage on any production. You still own the minerals. Buying transfers ownership entirely, in exchange for a lump sum. After a sale, you no longer own the minerals and you receive no future royalties. Both have their place. Buying typically delivers more value up front, leasing preserves long-term upside.
06
My royalty statements have a lot of cost deductions. Is that normal in New Mexico?
It is more common in New Mexico than in some other states because state methane rules have shaped operator economics and gas processing arrangements. Whether your specific lease permits which deductions depends entirely on the lease language. Reading your lease carefully and checking how the operator is calculating deductions is worth doing. We can help review your statements and lease language together if helpful.
07
My minerals are on or adjacent to State Land Office acreage. Does that change anything?
It can. The New Mexico State Land Office is a major mineral owner and conducts its own leasing through public auctions. If your minerals are adjacent to state acreage, the state's leasing dynamics may affect timing of nearby drilling. State acreage is leased on different terms than fee minerals. We can help sort out the implications for your specific situation.
08
Can I sell mineral rights I inherited if other family members inherited the same minerals?
Yes, you can sell your undivided fractional interest without needing the other heirs to participate. This is extremely common in Lea County, where many interests have been subdivided across generations of heirs, often spread across multiple states. A good buyer will work with your specific interest, not require you to round up cousins. We do this all the time.
09
How does the sale process actually work?
Step one, we do the research. You send us what you have, we pull NMOCD and BLM records, we check operator activity in the spacing unit, and we build an analysis. Step two, we send you a written summary with our reasoning. Step three, if you want to proceed, we handle the mineral deed preparation, you sign at a notary, and funds are wired at close. We move on your timeline, whether that is quick or deliberate. There is no charge for the research and no obligation to sell.
10
Why should I sell to Timberline Minerals specifically?
We are a family-owned office with roots in Texas and Montana. We work across the primary US basins and we are comfortable with New Mexico Permian specifics including state land dynamics, methane rule cost deductions, and the BLM Carlsbad process. We work with mineral interests of all sizes including small fractional positions. You should always get multiple offers and we encourage it. If ours is not the best one you receive, that is useful information for you. Either way, we are happy to help you understand what you have.

Find out what your
Lea County minerals
are actually worth.

Send us what you have, or what you think you have. We will pull NMOCD and BLM records, check operator activity in your section, and put together a plain-English summary with our reasoning laid out. If it makes sense to go further, we move on your timeline. If not, you have a free breakdown you can take anywhere.

Request a Valuation (512) 626-7267
Free · No Obligation · Your Timeline
08 Keep Reading

More for Lea County
mineral owners.

Guide · 6 min read
I inherited mineral rights. What now?
A walkthrough of the first few things to look at, whether you just found out or have been sitting on it for years.
Read the guide  →
Guide · 8 min read
How mineral rights are valued
The core inputs that go into a mineral valuation. Production, inventory, operator, lease terms, and what each one actually means in practice.
Read the guide  →
Guide · 5 min read
What to look for in an offer
Reading an offer letter, understanding what is and is not included, and the questions worth asking before responding.
Read the guide  →
Market Pulse

Permian status, April 2026

The Permian produced approximately 6.7 million barrels per day of crude oil in March 2026, the most recent month with confirmed data, accounting for roughly forty-eight percent of total US crude production. Year-over-year growth has slowed from prior peaks but remains positive. For Lea and Eddy mineral owners, the practical takeaway is that operator activity continues to be concentrated in stacked Wolfcamp and Bone Spring development across the Delaware sub-basin, with consolidation among public producers reshaping who operates which spacing units.

12 month oil production trend
6,700
thousand barrels per day
Latest month
+20(+0.3%)
thousand barrels per day
Month over month
+280(+4.4%)
thousand barrels per day
Year over year
Last updated April 2026. Source: US Energy Information Administration, Short-Term Energy Outlook (April 2026).