Offset Your W2 Taxes with Oil and Gas Partnerships

Courtney's Journey and Tax Benefits of Oil Investments

Courtney shared her personal journey of inheriting her father's oil and gas company and her subsequent evolution into syndication. She highlighted the tax benefits of investing in oil and gas and the importance of diversifying one's portfolio. Courtney also discussed the ongoing demand for oil despite the rise of renewable energy, and the significant role it plays in various aspects of daily life. Additionally, she explained the tax benefits associated with investing in a working interest in oil and gas deals, which can offset any kind of income, including passive and capital gains.

Tax Benefits and Risks of Oil Investments

Courtney discussed the tax benefits of investing in oil and gas, highlighting that there's no limit to the offset of capital gains and that depletion allowances offer a 15% discount on income produced from these investments. She also provided a detailed breakdown of how these tax benefits work using an example of a $500,000 income. Courtney then outlined the various risks involved in investing in oil and gas, including the uncertainty of returns, the risk of drilling a dry well, and potential expenses associated with maintaining wells. She recommended only investing with major oil and gas companies in proven areas, and stressed the importance of due diligence.

Discussing Mineral Interests and Returns

Courtney and Daniel discussed the verification of information regarding acquired and working mineral interests, emphasizing the importance of transparency in the oil and gas industry. They also reviewed the recent acquisition of an 11.44% interest in four wells located in Campbell County, Wyoming, which were expected to produce about 3.2 million barrels by the end of July. Courtney clarified the returns on an investment in oil and gas wells, noting that the majority of the return is received in the first 10 years, with 80% of it coming in the first five years. She also discussed the calculated expected net revenue income on a $1,000 investment, which yielded an estimated $304,000, and the expected returns at each stage of the oil production pipeline. Daniel expressed further interest in the project and indicated he had more questions to be addressed.

Purchasing Mineral Rights for Oil Production

Daniel and Courtney discussed the specifics of purchasing mineral and drilling rights for oil production. Courtney explained that they purchased a working interest, not the rights to a large area, in four wells that were not yet brought online. She clarified that they did not buy the rights to 2,000 acres, but rather a specific interest in each of the four wells. Courtney also mentioned that they acquired this interest through a landman, who had acquired the mineral rights at a low cost and then sold a portion to them. The landman had knowledge of investors looking for interest with major oil and gas companies. Courtney emphasized that this approach allowed them to bypass potential delays and risks associated with drilling and exploration, making it a safer investment option.

Oil Industry Investment and Environmental Impact Discussion

Daniel, Courtney, and Glenn discussed the investment implications of economic tax income benefits for oil companies and their environmental impact. Courtney confirmed many companies are trying to reduce their carbon footprint, but investing in them can be challenging due to negative environmental impacts. The continued demand for oil in the US was highlighted, along with the need to incentivize exploration and drilling. Daniel proposed creating an educational course with Courtney on the industry and investment opportunities. Courtney's QR code for investing in oil and gas partnerships was mentioned. They discussed exit strategies for their oil well investments once no longer economically feasible. The minimum investment for their operation was typically $100, but could vary. Daniel mentioned the Alternative Investing Club fund would be ready in two weeks with a $25,000 minimum investment, presenting an opportunity to invest as a general partner. Courtney hinted at a contingency plan if costs exceeded their break-even point. Daniel agreed to gather questions for Courtney to answer in a video recording for club members.