DASCO Cattle Company, LLC Ranch

DASCO CATTLE COMPANY RANCH

LEA COUNTY, NEW MEXICO

  The Dasco Cattle Company Ranch is located in the heart of the Permian Basin, just west of Eunice, New Mexico. Access to the ranch is provided by multiple paved highways, county roads and oil field roads. Besides operating as a traditional cattle ranch, the property benefits from substantial outside income sources such as salt water disposal income, fresh water sales, surface damages, caliche sales, and other periodic sources of income derived from the substantial oil field activity.

Topography • Water Features

  The terrain is fairly level to gently rolling and the soils are generally sandy loam with some tighter clay loam soils and areas of hummocky sand country. The ranch supports a desirable variety of native grasses with scattered mesquite and shin oak in the sandier country. The property is well watered by over 15 water wells, being a combination of electric submersible and solar wells. Water quality is generally considered good and several of the water wells are tied to buried waterlines serving multiple drinking troughs. Overall, the ranch is considered to be adequately watered.  Additionally, the property has 80 acres of commercial water rights and fresh water can be sold as a supplemental source of income.

Cattle Operation

  The ranch has historically been operated as a cow/calf ranching unit, generally supporting 450-475 mother cows. The property is fenced and cross fenced into approximately 10 pastures plus shipping and holding traps. Three sets of livestock working/shipping pens are conveniently located on the ranch. The headquarter improvements include employee housing, outbuildings, and pens and are considered to be very adequate for the ranching operation.

Oil Production  •  Salt Water Disposal

  Oil production and oil related facilities, roads and pipelines are found throughout much of the ranch. The seller owns no minerals; however, the oil activities generate substantial supplemental income to the ranch. The following is a breakdown on outside income for the past three years:

Outside Income July 1, 2023 through August 1, 2026 (3 Year)

There are 8 salt water disposals well sites on the ranch. Seven are located on deeded land and one is located on private leased land; however, the ranch receives a “thru put” payment of 5₵ per barrel for all water disposed on the leased land site.  The operator of the salt water disposal well sites is Goodnight Midstream Permian, LLC. Based on the agreement, Goodnight pays the landowner 20% of the income Goodnight receives for disposal of the salt water. Their agreement with the owner states, “Lessee shall charge a fair market rate as determined in the field surrounding the Leased Premises and disposed of in the Leased Premises and for any Hydrocarbons sold, provided that in no event may Lessee charge less than $0.25 per barrel for disposal of Disposed Water on the Leased premises, whether such barrel is transported to the Leased Premises by pipeline or truck.” Based on the above agreement, it may be possible that the salt water disposal income could increase substantially should Goodnight receive more than $0.25 per barrel for disposal of salt water.

In addition, Goodnight is scheduled to construct a new 16” salt water disposal pipeline into one of the gathering facilities on the ranch. Once this new pipeline is completed, the disposed water income should increase substantially.

Solar Energy Lease

Currently, there is also a solar lease option on 2,576 deeded acres.

Remarks  •  Price

  The DASCO Cattle Company Ranch is offered for sale at $30,000,000.  If you have interest in a working cattle ranch with the added bonus of substantial outside income, the DASCO Cattle Company Ranch should strongly be considered.

Call Sam Middleton today at (817) 304.0504 for more information or to schedule a tour.