Choose indirect exposure through public markets or direct participation in specific wells. Direct participation gives you working‑interest ownership, cash flow from sales, and access to tax benefits.
Public options include energy stocks and ETFs. Direct programs are private placements where you fund drilling and completion and receive your share of revenues and deductions.
Indirect routes offer liquidity and lower minimums but no pass‑through of IDCs, depreciation, or depletion. Direct participation programs (often LPs or LLCs) pass through revenues and deductions to investors, with economics governed by an AFE, a Joint Operating Agreement, and your ownership fractions (WI and NRI). Review structure, risks, and tax treatment before committing capital.
