Historically, oil and gas operators only give investors the cashflow from wells and keep the land value for themselves.
But King Operating Corporation does things differently, structuring their deals very much like a multifamily syndication.
So, what are the benefits of investing in oil and gas with King Operating? Why is Nighthawk Equity partnering with King to raise money for an energy fund?
Eric Rice is Chief Growth Officer for King Operating, where he oversees investor communications and studies the macro-economic environment and its impact on energy.
On this episode of Financial Freedom with Real Estate Investing, Eric joins Garrett Lynch and Drew Kniffin to explain how his team finds the right locations to drill and why they pick up deals that are overlooked by other operators.
Eric walks us through the tax benefits of investing in energy and describes why investing with King Operating is safer than other oil and gas investments.
Listen in for insight on the returns you might expect from investing in Eric’s fund and learn why NOW is the right time to put your money in an oil and gas portfolio like King Operating.
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Key Takeaways
How Eric got makes money in oil and gas
- Draw hydrocarbons out of ground, sell through pipeline or truck out
- Look for deals with 35% ROI (spend $10M, make $15M back)
How Eric’s team finds the right locations to drill
- Geology team analyzes 3D seismic heat maps for prospective deals
- Determines where hydrocarbons located and how much available
Why King Operating picks up deals overlooked by others
- Property not adjacent to existing infrastructure
- Land too small for larger players
The tax benefits of investing in oil and gas
- Allows investors 100% write off against contribution to fund
- Tax advantages on monthly income from sale of hydrocarbons
How investing in King Operating deals parallels multifamily
- Earn cashflow from selling off hydrocarbons
- Land worth more once prove out available reserves
Why investing with Eric’s team is safer than other oil and gas deals
- Build portfolio of wells vs. high-risk ‘wild catting’
- 200 provable drilling locations (volume overcomes pricing)
Why Eric predicts a boom cycle for oil and gas in the next 5 years
- OPEC Plus continues to reduce production
- Demand will exceed supply for first time in 50 years
How oil is used to make a number of products we use every day
- Tablets and clothing contain petroleum
- Used in manufacturing facilities and to produce EVs
What kind of returns King Operating investors can expect
- $100K investment = $87K removed from gross income
- 14% to 21% annual return ($15K on $100K investment)
What differentiates King Operating from other oil and gas investments
- Inclusive—investors own rights to lease
- Growing company drilling while others sit on sidelines
Related Articles
Investing in Oil & Gas vs. Real Estate Syndications
Opportunities in Oil for Passive Investors
Earn Big Returns With a Portfolio of Commercial Assets
Connect with Eric Rice
Invest in Nighthawk Equity’s Partnership with King Operating
Connect with Michael Blank
Apartment Investor Network Facebook Group
Email [email protected]
Resources
Join the Nighthawk Equity Investor Club
Explore Michael’s Mentoring Program
Access Michael’s Free Resources in the Freedom Vault
Review the Podcast on Apple Podcasts
Financial Freedom with Real Estate Investing by Michael Blank
