Benefits of Revenue Derived from a Partnership
Member FINRA, SIPC
Red River Securities, LLC, Oil & Gas Exploration & Development, Plano, TX

What You Need to Know

Who Should Invest

Investment Benefits

Partner Services

 
 
 
 

  • The benefits of an oil and gas investment may be two-fold: Revenue from reserves can create a monthly distribution income, and income taxes may be reduced resulting from well development expenses.

    Monthly Distribution of Revenue

    Owning interest in a drilling program may generate monthly cash distributions based on your level of ownership and what production rates are achieved as well as what prices the production may be sold for. Historically, the estimated productive lives of wells in Shale plays have extended to 30 years or more with estimates of 80 to 100 years of productivity. By owning interests in a drilling projects structured by Regal Energy, monthly cash distributions for your ownership may continue for the entire productive life of the well.

    Tax Advantages for Accredited Investors

    Congress has established tax advantages to stimulate exploration and development of oil and natural gas reserves for the individual investor. While these advantages are still available, individual investors need to consult with their tax advisor on how these items may apply to their own tax situation. Some of the tax advantages include:

    • Intangible Drilling and Development Costs – May be 100% deductible during the year paid.
    • Tangible Drilling Tax Deduction – Recovery period for equipment used in the exploration of petroleum and natural gas is 5-7 years.
    • Depletion – Income received from oil or gas production may be offset by the greater of cost or percentage depletion you invest.

     

    • Red River Securities, LLC is a registered broker/dealer and member of the Financial Industry Regulatory Authority (FINRA).

      Become an energy partner for the future – 888.608.8898

  • Disclaimer: This content is provided for informational purposes only. Information herein is not intended to be a solicitation of any kind. Nothing herein shall be construed as tax, legal or accounting advice. Investing in oil and gas is highly speculative and could result in substantial losses. Potential investors should consult their attorney, accountant and financial advisors before investing in oil and gas. Past performance is not a guarantee of future performance or returns.