Oil and Gas Investment Company Opportunities
Oil and gas continue to be an extremely lucrative sector for investment. The need for reliable energy sources has only continued to grow, and hydrocarbon fuel sources like oil and gas remain among the most popular. This means finding a good investment company for oil and gas is paramount. Once you’ve identified that company, however, how will you be investing in oil and gas in a way that will benefit your company or investment group the most?
Oil and Gas Investment Products
Possible options for investors interested in being involved in oil and gas include:
- Leases: A lease is a document giving the owner the right to drill wells on a specific piece of land to extract the oil and gas that may be located in that land.
- Mineral Rights, Working and Royalty Interests: A working interest is an ownership interest in the operations of a particular well. A working interest allows the owner greater participation in the revenue that the well generates as well as tax benefits, but also includes participation in the expenses of maintaining and running the well. Royalty interests refer to income to the owner of the mineral rights in the area and are based on the gross production of that well, with no responsibility to the actual drilling operations and no tax benefits.
- Mutual Funds: A lower risk interest in oil and gas drilling operations with lower returns and without tax benefits.
- ETFs and Traded Funds: Funds similar to mutual funds but purchased on exchanges and traded in a similar fashion as to the way stocks are traded. These are considered medium-risk with some tax benefits, and each may be structured differently. Be sure to understand how yours will be structured before you invest.
- Stocks: Oil and gas stocks work just like any other commodity, with more volatility and greater returns coming with greater risk.
- Partnerships: Partnership investments can be structured in a variety of different ways and can be based on all of the oil and gas company operations or only on specific projects. Investors buy a certain number of agreed-upon units from the partnership and share revenue accordingly. A variety of possible tax advantages can come with a partnership investment arrangement.
Contact Viper Capital Partners for Quality, Informed Oil and Gas Investing Today
Now that you have a solid understanding of the different ways you can invest in oil and gas, you may be wondering about the best oil and gas companies to invest in. Among Texas oil and gas investment companies, consider Viper Capital Partners. We are a Houston-based oil and gas investment company with a variety of methods for generating profitable revenue streams with oil and gas. To learn more about the various investment options, request investment information today.