NexPoint Launches $18.8M Energy DST Holding Haynesville, Permian Royalties

NexPoint has launched NexPoint Energy DST, an $18.8 million Delaware statutory trust that holds oil and natural gas mineral rights in the Haynesville Shale and the Permian Basin. It is the Dallas-based alternative investment firm's first energy DST. The offering comes a little more than three months after NexPoint formed NexEnergy, an oil and gas investment division focused on mineral and royalty interests, with Luke Blackwell named president.

The portfolio includes approximately 1,277 net royalty acres, with interests in more than 200 producing oil and natural gas wells and more than 300 undrilled locations. About 90% of the portfolio is tied to natural gas production in the Haynesville Shale, and the remaining 10% to oil from the Permian Basin. The offering has a $100,000 minimum investment, is open only to accredited investors, and the DST structure allows investors to use it for 1031 exchanges. Interests are offered through NexPoint Securities, an affiliate of NexPoint.

NexPoint said it acquired the mineral interests from a third party. A NexPoint spokesperson said the purchase was driven by current production, undrilled inventory locations, and operator quality, with third-party engineering and market comps used to value the portfolio. The trust owns the mineral rights and receives royalty income, while third-party operators handle drilling, field operations, production, and marketing. Investors carry no direct responsibility for drilling costs or day-to-day operations. NexPoint said it has brought 36 DST programs to market since 2016, totaling more than $3.2 billion in gross real estate.

Returns are sensitive to commodity prices, particularly natural gas given the portfolio's Haynesville weighting. A NexPoint spokesperson said underwriting applies modest commodity price estimates to conservative type-curves, providing cushion to projected future cash flows. What remains unknown is the specific purchase price paid to the third party, the identity of the operators, and the projected cash flow or yield figures for the DST.