OIL & GAS
INVESTMENTS

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Reduce Taxes and Generate Steady Income

Why Oil and Gas Investing Works for 1031 Exchange Investors

Oil and gas programs provide a unique blend of tax efficiency, cash flow potential, and ownership of real assets. These investments are especially attractive to high-income earners seeking energy-related deductions and diversification outside traditional markets.

For nearly 40 years, many wealthy individuals have discovered the benefits of using oil and gas into their 1031 exchange investments and growing their financial portfolio by investing directly into these direct participation programs.  With the passage of the Tax Reform Act of 1986, Oil and Gas ventures today remains one of the few tax-advantaged investments available to American taxpayers. 

Now, today’s investor also has access in finding that adding oil and gas investments to their portfolio is a smart move.  Especially with the current political and economic environment and inflationary challenges in recent years,  more people realize that now may be a particularly good time to invest in this sector.

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What may be the advantages of oil and gas investments?

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DEFER TAXES

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POTENTIALLY HIGHER RETURNS

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TAX DEDUCTIONS

  • A portion of investment may be deductible in the first year—often up to 70–80%, depending on the structure

  • Certain capital equipment and development costs may qualify for accelerated depreciation

  • Investors may benefit from a percentage of tax-advantaged income on extracted resources

  • When material participation requirements under IRC §469 are met, deductions may apply to active income

  • These investments may allow for a step-up in basis and provide flexible options for generational wealth transfer

Want to Learn More About Energy-Based Tax Strategies

All offerings are subject to availability. Please read the full Private Placement Memorandum for a complete discussion of the business plan and risk factors of each offering prior to investing. We are unable to provide tax or legal advice. Please speak with your CPA, attorney or financial professional for advice and guidance regarding your specific situation before investing.

Some investments such as Alternative investments and DSTs involve significant risks and may be illiquid, speculative, and suitable only for accredited investors.*

*Accredited investors are defined under SEC Rule 506 of Regulation D. Generally, an investor is deemed accredited if their net worth is greater than $1,000,000 exclusive of their primary residence and/or their annual income exceeds $200,000 for the current and past two years.

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An investment in the Partnership may provide certain tax benefits; however, these tax benefits are not guaranteed. Changes in federal and state tax laws could eliminate these. For example, the Biden Administration's fiscal 2025 budget proposal would eliminate tax preferences for fossil fuels.

Also, if the IRS successfully challenges the timing or allocation of the deduction of Intangible Drilling Costs, such deductions could be required to be taken into account in later tax years, including tax years that are after your investor general partner Units are converted to limited partner Units, which could adversely affect the characterization of at least a portion of the deductions as active for purposes of the passive activity rules.

An investment in the Partnership involves a high degree of risk. An investor should only invest if he or she can afford the total loss of the investment. Attainment of the Partnership's investment objective to provide cash distributions to you and tax benefits will depend on many factors including the ability of the Managing General Partner to select suitable wells that will be productive and produce enough revenue to return the investment made. The success of the Partnership depends largely on future economic conditions, especially the future prices of natural gas and oil, which are volatile and may be low or decrease during the well's most productive period.

There can be no guarantee that the foregoing objective or tax benefits will be attained. Before the drilling of a well, the Managing General Partner cannot predict either the volume of natural gas or oil from the well or the time it will take to recover the natural gas or oil, if at all. The quantity of natural gas or oil (i.e., reserves) decreases over time as the natural gas or oil is produced until the well is no longer economical to update.