Oil and Gas Investments
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Nearly 98% of everything you do is in some way related to crude oil. Heat for your home, gas for your car, plastic bottles and cosmetics are just a few examples of the thousands of petroleum-based products you use every day.
Some things you should know about oil & gas in the US:
- Growth in U.S. oil & gas production = new opportunity to invest capital.
- An estimated $8 billion per year in new oil & gas infrastructure alone will be needed for the next 20 years, simply to handle the growth in expected production.
- Significant low risk/high return oil and gas development is now available in the US.
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What is a Master Limited Partnership and Why is it a good investment opportunity?
A Master Limited Partnership (MLP) is a type of limited partnership that is publicly traded. The advantages of an MLP are that it combines the tax benefits of a limited partnership (the partnership does not pay taxes from the profit – the money is only taxed when unitholders receive distributions) with the liquidity of a publicly traded company as well as a comparatively high yield, compared to other investment vehicles.
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Features of this Master Limited Partnership (MLP) Opportunity:
- You must be an accredited investor to participate in this investment opportunity. (Click here to learn more)
- The Partner will use the funds to acquire proved undeveloped acreage and drill developmental oil and gas wells
- The Distribute a 7% annual cash distribution (paid quarterly) that is tax deferred
- Grow the Partnership’s assets through reinvestment of cash after the 7% distribution into additional acreage and the drilling of additional wells.
- Provide investors a liquidity event within five years through a listing on a national securities exchange (MLP), a merger into another public MLP, or sale of the MLP.
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Risk Factors can include but are not limited to:
(Please note: Before making an investment decision you must obtain and read the offering materials in their entirety)
- This investment may not be suitable for all investors.
- This investment is illiquid and investors should be able to bear the loss of their investment.
- There is no guarantee of return of investment or rate of return on investment because of the speculative nature of drilling oil and natural gas wells.
- The Partnership has no significant operating history upon which you may base an evaluation, and the Partnership may not be able to identify suitable oil and gas properties to acquire.
- The Partnership depends on the General Partner and its Affiliates to provide personnel and facilities to conduct its operations. Also, the fiduciary duties of the General Partner’s officers and directors may conflict with those of the parent company and its Affiliates.
- The Partnership may not have results similar to the results obtained by the General Partner’s Affiliates in their prior activities, and may incur losses.
- The Partnership’s operations involve the possibility of a total or partial loss of your investment because of the speculative, high-risk nature of drilling natural gas and oil wells.
- The oil and gas business is subject to environmental hazards, which could expose the Partnership to material liabilities for property damage, personal injury or other environmental harm, as well as substantial fines and remediation expenses.
- Quarterly cash distributions to you and the other investors are not guaranteed, and may be reduced if natural gas and oil production from the wells the Partnership drills is less than the Partnership expects, the Partnership drills one or more dry holes, or there is a decrease in the price of natural gas and oil. Also, compensation and fees to the General Partner will reduce cash distributions to you and the other investors.
- There is currently no public market for the Common Units or Warrants, which makes it extremely difficult for you to sell them. You may be required to hold your Common Units and Warrants for an indefinite period of time, and the Warrants may expire worthless if a Liquidity Event does not occur or if, at the time of the Liquidity Event, the value of a Common Unit is $10.00 or less.
- You and the other investors and the General Partner will share in the Partnership’s costs disproportionately to the sharing of its revenues.
- Federal and state legislation and regulatory initiatives relating to hydraulic fracturing could result in increased costs, operation restrictions or delays, or make proposed Projects uneconomic./
- The Partnership may issue an unlimited amount of Common Units and other equity securities, including interests that are senior to the Common Units, which would dilute your ownership interest in the Partnership.
- If the Partnership were to become subject to entity-level taxation for federal or state income tax purposes, taxes paid would reduce the amount of cash available for distribution. Also, changes in the law may reduce your tax benefits from and investment in the Partnership, and taxable income may be allocated by the Partnership to you and the other investors in excess of your respective cash distributions from the Partnership.