$72/bbl is the underwriting baseline. Distributions scale up or down from here.
24%
32%
35%
37%
Most accredited investors fall in the 32%–37% range.
0%13%
Check your state's treatment before using this input.
70%100%
Share of your investment treated as deductible in year one. Varies by well and deal structure.
First-year tax savings
Assuming 90% of your investment is deductible as intangible drilling costs in year one
$0
Estimated first-year tax savings
$0
Year-one deduction (90% of investment)
37%
Combined tax rate (federal + state)
$0
Net investment after tax savings
Your total return
What this investment is projected to pay you back over its life.
1. Capital invested
$0
2. Time to return of capital
0.0 yrs
$0
3. Total return over the hold period (7-10 years)
$0
0.0x total return
Capital returned
$0
Profit
$0
Total
$0
Disclaimer: Actual results may differ materially, and this calculator does not constitute tax, legal, or investment advice. It's a simplified illustration for educational purposes only. The distribution schedule is modeled at $72/bbl oil, $3.50/mcf gas, and 650,000 bbl oil EUR and 8,000 MMcf gas EUR per well, with distributions scaled up or down from that $72/bbl baseline using the oil price you select. Cash flow is estimated to start about six months after capital is deployed, once wells are drilled, completed, and turned to sales. Stabilization across the full set of wells can take longer, with later distributions catching up as remaining wells come online. The tax savings figures assume the intangible drilling cost percentage you select is deductible in year one, and that deductions offset income taxed at your combined federal and state marginal rate. Some states, including California, don't allow the IDC deduction at the state level, so confirm your state's treatment separately. Actual results depend on well performance, realized oil and gas prices, operating costs, and individual tax circumstances, including how the interest is held and passive-activity rules. Consult your tax advisor. Investment in oil and gas involves risk, including possible loss of principal, and is available to accredited investors only.