what's a working interest and how does it affect your oil and gas investment returns and tax treatment?
A working interest is an ownership stake in an oil and gas lease that entitles the holder to a share of production revenue while bearing a proportional share of operating costs.
DPP vs. Royalty Interest
Compare direct participation programs against royalty interests to understand the differences in risk, return, and tax treatment.
DPP vs. Royalty CalculatorWritten by
Preston Bass
CEO
Preston Bass is the founder of Bass Energy & Exploration (BassEXP) and a third-generation oil and gas operator. He helps qualified investors evaluate working-interest energy projects with a focus on disciplined execution, cost control, and transparent reporting. Preston also hosts the ONG Report (Oil & Natural Gas Report), where he breaks down complex oil and gas investing topics—including tax considerations and deal structure—into clear, practical insights.
Read Full Bio →Disclaimer: The information provided in this article is for informational purposes only and should not be considered legal or tax advice. We are not licensed CPAs, and readers should consult a qualified CPA or tax professional to address their specific tax situations and ensure compliance with applicable laws.
