Oil Investing FAQ: Distributions and K‑1s

Short Answer

Distributions begin after first sales and net back lease operating expenses, taxes, and any hedging settlements. Partnerships issue Schedule K‑1s annually so investors can claim IDCs, depreciation, and depletion as applicable.

What It Means to an Investor

Distribution cadence follows purchaser pay schedules and field accounting. K‑1s report your share of income and deductions, including IDC elections, MACRS depreciation, and percentage depletion. Maintain basis records to support filings.

Our website is not an offer to sell, nor the solicitation of an offer to buy any security.

Nothing herein is intended to constitute an offer, or the solicitation of an offer, to buy or subscribe for any securities to any person in any jurisdiction unless otherwise stated. Offers or solicitations which are made to buy or sell any securities are only be made pursuant to the Disclosure Memorandum, which contains important information about risks, fees, expenses, and details. Further, no offer is made in any jurisdiction where such securities are not registered or appropriately exempted. Unless otherwise stated, any securities listed herein will not be registered under the US Securities Act of 1933 as amended, or any other act, and only qualified Investors as defined in 17 CFR 230.501(a) and persons residing abroad in jurisdictions where securities registration exemptions apply may purchase them.

Call 405-832-1777

How do distributions and K‑1s work?

This is your opportunity to invest in oil directly.