New Mexico held its latest monthly auction of oil and gas leases, generating a total of $5.5 million in high bids, according to data released by the State Land Office. Although this amount is lower than those recorded in October ($6 million) and September ($8.3 million), it surpasses several sales held earlier in 2024.
The auction featured 14 parcels, with a record single bid of $2.4 million placed by Dudley Land Co., a company based in Katy, Texas. This amount represented nearly 44% of the total bids and marked Dudley Land Co.’s sole participation in the auction.
The second-highest bid, at $1.24 million, came from Federal Abstract Co., a company specializing in managing land titles on federal, state, and Indigenous lands. Together, these two bids accounted for roughly two-thirds of the total auction revenue.
Dominance of Regular Bidders
Federal Abstract Co. stood out with the highest number of winning bids, securing six parcels for a total of $1.5 million. Magnum Producing, a company based in Corpus Christi, Texas, also emerged as a major player with five successful bids totaling $700,750.
Other notable bidders included Martin Oil & Gas, a Colorado-based company, which secured one parcel for $400,529, and Marshall & Winston, a privately held company based in Midland, Texas, which acquired one lease for $480,080.
Economic Context and State Strategy
The November results reflect a fluctuating trend in state auctions. Although the revenue is lower than in previous months, this decline is partly attributed to the state’s strategic decision to withhold premium land offerings.
Stephanie Garcia Richard, director of the State Land Office, announced earlier this year that certain strategic parcels would be withheld until the legislature approves a higher royalty rate. Currently set at 20%, this rate could increase to 25%, aligning with other major oil-producing states.
This strategy aims to maximize future revenues for public agencies reliant on oil and gas income. However, it also highlights the delicate balance between meeting immediate budgetary needs and ensuring long-term benefits through better resource management.
