Professional Documents
Culture Documents
C H E S A P E A K E
E N E R G Y
U M
2 0 1 1 SU MMER 2011
The
BENEFITS
OF ROYALTIES
03 05
Royalties Hit Home Run in Community Vince Hernandez Royalties Improve Their Quality of Life Michael and Wendy Weiss Investing in Education Geri and Bennie Medlin Perfect Timing on Royalty Payments Gerald Long
07 09
Zero Investment, Positive Returns Shana and Greg Hutson More Great Journeys Ahead Frank and Patricia Salazar Their Home is Paying Them Back Linda and Mike Bell Appreciating American Rights Candy and Ben Channell Sisters Enjoy Royalty Inheritance Laura Wikstrom and Christine Humberson
So far in 2011, Chesapeake Energy Corporation has paid out $120 million in natural gas royalties in the Barnett Shale. Last year alone, Chesapeake distributed $252 million in royalty payments. The current royalty payout in the Barnett to date is more than $1.38 billion.
www. A s kC h e sa p e a ke.co m /B a r n e tt
1 0 0 E N E R GY WAY FO RT WO RT H , T E X A S 76 1 02 8 17 - 5 02 - 5 0 0 0
03
The Joshua Baseball Association scored big with its royalty payments, utilizing them to buy uniforms, improve fields and support those needing assistance in their community. Pirates baseball coach Vince Hernandez, president of the association, with players, from left, Connor Campbell, Alex Jones and Jacob Tarr.
JBA invested about $500 of its royalties, said Kim Kelly, the JBAs treasurer.
receiving royalties, a fundraiser of this magnitude might not have been feasible, said the baseball association president.
his league was so strapped for cash two years ago that it was a struggle simply to pay the umpires.
Royalties have helped out tremendously. Weve benefited from royalties as an association, so we felt like we needed to pass it on to the kids.
Vince Hernandez
03
05
Gerald Long has been
retired for 18 years and says his royalty payments offer supplemental income that eases the strain on his IRA. Ive said all along after we signed up, said Gerald, that if I just got enough to pay a water bill, it would help out. Now that hes collecting checks, Gerald said that expectation is being met, as he uses his royalty earnings to pay more bills and other basic expenses. He said
Appreciative parents: The Weiss family, with daughters, from left, Rachel, Candace, Aubrey and Erin.
Michael and Wendy Weiss began receiving royalties two years ago, around
the time their first child enrolled in college. With three more children still at home, the couple expects to have at least one child in college during the next 10 years. Considering the average life of a natural gas well is 30 years or more, the Weiss family will likely continue receiving royalty checks until the youngest child has graduated. So royalties will be helping fund their childrens educations for a long time.
royalties couldnt have started coming at a better time. Its just a boost to my income.
I consider it a blessing that they came at a time when our kids started going to college. They help us pay our taxes and for our kids to participate in sports and other activities that they otherwise might not be able to take part in. Wendy Weiss
When you put them aside, said Wendy about the royalties, they add up and improve the quality of life for our family.
05
07
The Hutsons risk-free financial returns from royalties also benefit sons Josh and Caleb.
I see it as a return that didnt really cost me anything, said Greg. Ive never had royalties before, he said.
Frank and Patricia Salazar have many passions, from traveling around
the world to watching their beloved Dallas Cowboys play right here at home. Royalty income helps the couple finance these shared adventures.
As Executive Director of the Kennedale Chamber of Commerce, Greg said he understands the value of royalty income during a challenging economy, as well as the impact the Barnett Shale has had on the North Texas region. On a personal level, he considers royalties more valuable than other investments he has made because the return is consistent, risk free and didnt require a financial commitment.
And Ive got to say, I like it. Greg and Shana arent the only members of the household elated about royalties. Their two sons have been lobbying for the royalties to be spent on them, too.
Patricia Salazar
The Arlington couple use their royalties to purchase everything from cameras, art supplies, sports tickets and other items they otherwise might not be so quick to obtain without the extra income. Mostly, their checks have been used to subsidize trips to China, France and
My older son wants a new laptop, and were looking into using royalties to buy one, said Greg. My other son, a seventh grader, is already talking about how he wants us to use the royalties on him.
Scandinavia over the years. The couple looks forward to discovering what opportunities future royalties will bring. It is fun to look forward to the checks coming in every month, said Patricia. Its like the frosting on our cake.
ROYALT Y OWNERS SUM M ER 2011
07
09
Linda and Mike Bell had been paying their home mortgage in Fort Worth for
39 years. Now, their home is paying them back for the investment. Like thousands of other families throughout the Metroplex, the Bells are benefiting from natural gas in the Barnett, one of the most productive shale plays in the world.
helped New Yorkers enjoy the economic advantages of natural gas production in the Barnett.
We purchased the property and home and everything. Before, of course, our home never paid us back for anything. Since we started drawing royalty checks, our home has been paying us back for purchasing it.
Linda Bell
Even though the Bells no longer have to make house payments, taxes and insurance have not eluded them. Royalties make an important contribution toward paying those bills. Were really happy to be able to benefit from royalties, said Linda. In this nation, residents can own their minerals and benefit from production. For that right, the couple is thankful and proud.
ROYALT Y OWNERS SUM M ER 2011
09
1 0 0 E N E R G Y WAY F O R T W O R T H , T E X A S 76 1 0 2 8 1 7 - 5 0 2 - 5 0 0 0
B S B I V0 1 0 6 / 1 1