What Texas Royalty Corp does

Texas Royalty Corp is an independent oil and gas exploration and production company founded in 1986 and headquartered in Austin, Texas. The company identifies, develops, and operates oil and gas prospects primarily across Texas (East Texas Basin and West Texas shallow plays from the Eastern Shelf to the Permian Basin), with additional non-operated interests in Oklahoma, Arkansas, Louisiana, Mississippi, Kansas, Alabama, and California. Its core technical capabilities include 3-D seismic analysis, vertical and horizontal well drilling, well reworking and recompletion, and full-cycle field operations management including regulatory filings and plug-and-abandon work. The company also purchases producing and non-producing mineral and royalty interests directly from owners, handling all transaction details from deed preparation to county courthouse filings.

Texas Royalty serves three primary customer segments: (1) mineral and royalty owners, to whom it pays ongoing royalties from production on their properties; (2) oil and gas investors, whom it brings into drilling programs and producing property acquisitions through joint ventures and limited partnerships; and (3) oil and gas companies looking to divest non-core properties or expiring leases during market downturns. The company's revenue is generated through operated and non-operated oil and gas production plus structuring fees and operator services on joint venture and limited partnership investment vehicles. Direct participation programs offer investors tangible tax advantages including immediate deduction of intangible drilling costs (50-60% of well cost), depletion allowance (15-20% of annual production), and seven-year MACRS depreciation on equipment.

The company is privately held and wholly owned by founder Tom R. Schoonover, a Vanderbilt engineering graduate and former Schlumberger field engineer who has led the business since 1987. Distribution is conducted through direct outreach via phone, email, and in-person engagement, supported by a content-led website and membership in industry associations including SPE, TIPRO, IPAA, ETGS, SIPES, and the Texas Alliance of Energy Producers. Investor monitoring is delivered through third-party platforms WellAware, Trak1, and Scadalynx.

Name

Texas Royalty Corp

Legal name

Texas Royalty Corp

Website

https://texasroyalty.com

Company type

Private

Founded year

1986

Operating status

Operating

Headcount range

1–10 employees

Short description

Texas Royalty Corp is an Austin-based, founder-owned independent oil and gas exploration and production company that develops shallow oil prospects primarily in Texas, operates wells on behalf of joint-venture and limited-partnership investors, and acquires mineral and royalty interests from owners.

Ownership category

akta.pro rank

Product category

Upstream Oil and Gas Exploration and Production

NAICS

Oil and Gas Extraction (211), Oil and Gas Extraction (2111), Crude Petroleum Extraction (21112)

SIC

Crude Petroleum & Natural Gas (1311), Oil Royalty Traders (6792), Mineral Royalty Traders (6795), Oil & Gas Field Exploration Services (1382)

akta.pro primary industry

Real Assets — Oil & Gas / Energy Royalties (Mineral Rights, Midstream Royalties) (FSAHAIAL)

akta.pro secondary industry

Real Assets — Natural Resources & Minerals (Mining, Royalties/Streaming) (FSAHAIAK)

Keywords

• Oil and gas exploration
• Mineral rights acquisition
• Drilling prospect development
• Upstream oil production
• Energy joint ventures

Headquarters

HQ city

Austin

HQ country

United States

HQ region

North America

Offices2 records

Markets served

GTM type

B2B

Offering type

Services

Cost components

Operations, Personnel, Technology or R&D, Infrastructure, Supply Chain, Marketing or Sales

Revenue model

1. Oil and Gas Production: Texas Royalty generates revenue through exploration, drilling, and production of oil and gas from operated and non-operated wells. The company focuses on shallow oil prospects and gas prospects, with production primarily from the East Texas Basin and operations in Texas, Oklahoma, Louisiana, and California.
2. Joint Venture Investments: The most common investment vehicle used for drilling projects. Joint Venture structure optimizes tax benefits and affords the highest level of investor decision making to partners. Texas Royalty oversees geological, engineering, land, accounting, drilling, completion and production services.
3. Limited Partnership Acquisitions: Used for acquisition of producing properties. The Limited Partnership structure grants Texas Royalty flexibility to find and negotiate the most favorable production packages for the benefit of limited partners.

Go-to-market motion2 records

Distribution channels3 records

Marketing channels4 records

Core offering

Texas Royalty Corp is an independent oil and gas exploration and production company based in Austin, Texas. The company identifies and develops shallow oil and gas drilling prospects (primarily in the East Texas Basin and West Texas), operates wells end-to-end including drilling, completion, and production, acquires producing and non-producing mineral and royalty interests from owners, and structures joint venture and limited partnership investment vehicles that give investors direct participation in drilling programs and producing property acquisitions.

Product overview

Texas Royalty Corp is an experienced independent oil and gas exploration and production company offering a comprehensive suite of services from exploration to production. The company's core offerings include drilling prospect development (with focus on shallow oil plays in West Texas and East Texas Basin), production and operations management (handling all field operations, regulatory filings, and plug-and-abandon procedures), and mineral/royalty interest acquisition. Investment products include Joint Ventures and Limited Partnerships that provide investors with tax advantages through intangible drilling costs deductions, depreciation, and depletion allowances. The company also provides investor monitoring platform access through WellAware, Trak1, and Scadalynx integrations for tracking well performance.

Differentiator

Problem solved

Functional benefit

Products and services

• Oil and Gas Exploration Services Identification and development of oil and gas drilling prospects in Texas and surrounding states using geological analysis, geophysical surveys, and 3-D seismic technology, with primary focus on shallow oil plays in the East Texas Basin and West Texas.
• Drilling Prospect Development

Quantifiable outcome

• 40 years in business since 1986
• +3 more outcomes

Named customers4 records

Segments3 records

Ideal customer profiles3 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Integration3 records

Feature3 records

Partnerships

Seven partnerships are on record, tiered core and minor.

• Select Non-Operating Partner CompaniescoreStrategic or Co-development PartnerTexas Royalty partners as a non-operator with select companies who have regional operating expertise, developing prospects and new fields outside their primary area of focus. Since 1994, they have taken non-operated interests in numerous wells each year in Oklahoma, Arkansas, Louisiana, Mississippi, Kansas, Alabama and California.
• Society of Petroleum Engineers (SPE)minorOthersProfessional industry association for petroleum engineers. Tom Schoonover is a longstanding member.
• Texas Independent Producers and Royalty Owners Association (TIPRO)minorOthersState association representing independent producers and royalty owners. Tom Schoonover is a longstanding member.
• Independent Petroleum Association of America (IPAA)minorOthersNational association representing independent petroleum producers. Tom Schoonover is a longstanding member. Statistics from IPAA are cited on the Role of Independent Operator page.
• East Texas Geological Society (ETGS)minorOthersRegional geological society. Tom Schoonover is a longstanding member.
• Society of Independent Professional Earth Scientists (SIPES)minorOthersProfessional society for independent earth scientists. Tom Schoonover is a longstanding member.
• Texas Alliance of Energy ProducersminorOthersState energy producer association. Tom Schoonover is a longstanding member.

Scale indicators6 records

Recent moves8 records

Expansion highlights4 records

Direct peers

• Sitio Royalties: Publicly traded pure-play mineral and royalty company focused on acquiring and managing mineral rights across U.S. basins including the Permian, Eagle Ford, and Williston. Comparable to Texas Royalty's royalty acquisition business, with overlapping target geographies and similar acquisition-from-mineral-owners strategy.
• Dorchester Minerals: Publicly traded partnership owning mineral interests, royalty interests, and net profits interests across multiple U.S. basins including the Permian Basin. Comparable to Texas Royalty's mineral/royalty portfolio with similar partnership-style structure and multi-basin diversification.
• Cox Operating: Privately held, family-owned independent oil and gas exploration and production company operating primarily in the Gulf Coast region. Like Texas Royalty, Cox operates its own wells with a lean team and pursues direct participation programs for investors — a highly comparable private E&P model with similar scale and structure.
• Black Stone Minerals: Largest publicly traded mineral and royalty company in the U.S. with an actively managed portfolio of mineral rights, royalty interests, and non-operated working interests across major producing basins. Directly comparable to Texas Royalty's mineral/royalty acquisition and management activities, though at significantly larger scale.
• Mesa Royalty Trust: Statutory trust holding overriding royalty interests in oil and gas properties across multiple U.S. basins. Comparable to Texas Royalty's royalty ownership and management activities, with similar revenue model based on production payments from operated wells.
• Kimbell Royalty Partners: Publicly traded oil and gas mineral and royalty company operating across major U.S. shale basins. Directly comparable to Texas Royalty's royalty acquisition and management activities, with similar business model of consolidating fragmented mineral interests.
• Permianville Royalty Trust: Trust holding net profits interests in oil and gas properties operated by major producers across multiple U.S. basins. Comparable to Texas Royalty's royalty interest ownership and production-based revenue model, with similar exposure to conventional and unconventional plays.
• Diversified Energy: Publicly traded independent operator focused on acquiring and optimizing mature, long-life producing properties in U.S. onshore basins. Similar to Texas Royalty's strategy of acquiring producing assets at favorable valuations and optimizing them through reworking and operational improvements.

Broad incumbents

• EOG Resources: One of the largest U.S. independent oil and gas producers with operations across multiple basins including the Permian, Eagle Ford, and Bakken. Broader incumbent in the same upstream E&P space, offering overlap with Texas Royalty's exploration and production activities but at vastly larger scale and with a focus on unconventional plays.

Emerging players

• Trio Petroleum: Small publicly traded oil and gas exploration and production company focused on conventional and unconventional plays in California. Comparable as a small-scale independent operator pursuing direct participation programs, though with a more concentrated geographic footprint than Texas Royalty.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat4 records

Key risks6 records

Key highlights6 records

Customer concentration

• Facebookfacebook.com/texasroyaltycorp/?fref=ts
• LinkedInlinkedin.com/company/texas-royalty-corp

Revenue estimate

Valuation estimate

Number of profiles

Profiles2 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Texas Royalty Corp