For Investors

Investment Opportunities

Learn how our investing partners are booking active tax deductions and making 12%-40% cash on cash returns

Tax advantages of oil & gas investing

When it comes to tax-advantaged investments for wealthy or sophisticated investors, one investment class continues to stand alone above all others: oil.

100% IDC Deduction

Intangible Drilling Costs (65-80% of investment) are 100% deductible in the year incurred against ordinary income.

100% TDC Deduction

Tangible Drilling Costs are 100% deductible over 7 years through depreciation, win or lose.

15% Depletion Allowance

Generally, 15% of gross income from a producing well is tax-free, making a portion of returns tax-exempt.

Key tax benefits under current law

Intangible Drilling Costs (IDC)

Labor, chemicals, mud, grease and other items necessary for drilling. These generally constitute 65-80% of total drilling costs and are 100% deductible in the year incurred.

Tangible Drilling Costs (TDC)

The actual drilling equipment. These costs are fully depreciated over 5 to 7 years depending on equipment type.

Depletion Allowance

Generally, 15% of the gross income from a producing well is tax-free subject to certain limitations, providing long-term tax benefits.

Lease Operating Expenses

Once a well is in production, operating expenses are netted against production revenue and are 100% deductible.

Active Income Treatment

Net revenue from a producing well is treated as operating income, not passive activity, providing more flexibility for tax planning.

Small Producer Tax Exemptions

Additional benefits and exemptions are available for small producers under current tax code.

Important: Please consult with a tax professional for information specific to your tax situation before making any investment decisions. Tax considerations vary depending on your personal tax situation.

Structured participation process

Capital participation follows a defined procedural framework — deliberate, structured, and accountable

Review materials and evaluate the opportunity

Consult with our team on alignment with your capital strategy

Execute participation documentation

Fund participation

Receive operational and drilling updates

Receive production-based distributions

Receive annual tax documentation

Due diligence & transparency

Transparency is embedded within our operating structure — not added after the fact

Flowtex maintains structured documentation and reporting protocols designed to keep partners fully informed. We provide extensive information on each partnership so partners may conduct appropriate due diligence before doing business with us.

SEC Compliance

For your protection, we recommend reviewing the U.S. Securities and Exchange Commission investor publication: "Oil and Gas Scams: Common Red Flags and Steps You Can Take to Protect Yourself"

If you believe that any Flowtex Energy personnel has communicated with you in a manner inconsistent with our policies, please notify management immediately by emailing contact@flowtexenergy.com.