There are many benefits of owning oil and
gas royalty interests. Royalties generally lack the risks inherent
with owning a working interest in an oil or gas well because
owners are not responsible for the expenses or liability associated
with drilling and operating a well.
- Ownership of Energy Production without Drilling
Risk or Operational Liability.
- No Potential Capital Calls
- Income - Oriented Investment with Potential
for Decades of 7%+ Cash-on-cash Yield (Yield Range 7% - 17+%)
- Serendipity - If additional wells are drilled
on the lease, the owners of oil and gas royalty interests
receive their share of the proceeds from the sales of production
from that point forward at no additional cost to them.
- Monthly or quarterly cash distributions
- A passive investment – no management
or active participation
- Good Tax deductions. (15-20% of the annual
income is tax free)
- No Self Employment Tax
- Traditionally owned
by some of the Wealthiest Families (Rockefeller, Hunt) and
Institutions
