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FinFlow Webflow theme is insanely flexible and amazingly easy to use. This alone would be enough for a 5 star rating. On top of a great tool is even better customer support.

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FAQ's

We've got answers to your questions on the oil & gas industry.

How Do I Invest?

What am I investing in?
You are subscribing to a general partnership that shares in the profits from the production of oil and gas assets. The assets included in our funds are located in Texas and Colorado with a soon-to-be-acquired asset in Wyoming and our team acquires and manages the operations, ongoing production, and sale of these assets on your behalf.

Who can invest?
Per SEC regulations, only accredited investors may participate in a partnership associated with one of our funds. An accredited investor is someone who has a net worth of over $1 million (not including their primary residence) or has made $200,000 the last two years and expects to make the same this year; or $300,000 if filing jointly.

Do I have to prove that I am an accredited investor?
Yes- you can establish your accreditation by consulting with your accountant or tax professional who can provide you with verification of your status.

How do I earn returns from this investment?
As a general partner, the returns you receive in the form of Monthly Passive Income (MPI) consist of 80% of distributable revenue generated from the production of all working assets associated with the fund you invest in. At the end of the Fund life, we may liquidate the remaining investments and distribute proceeds back to investors, net of expenses and fees.

When can I expect a return?
Newly subscribed partners can expect to receive returns in the form of Monthly Passive Income (MPI) in the month following the completion of their subscription agreement and the wiring of their funds. On the backend, King and its partners require two calendar months to process and distribute funds from production accordingly, meaning that the MPI you receive as an investor in the calendar month of December comes from the profit generated by fund assets in the calendar month of October, and so on.

How long will my money be in this investment fund?
Our Funds have a target life of three to five years. As the fund begins nearing the end of its life, we will begin liquidating the remaining investments and distributing proceeds back to investors, net of expenses and fees.

What is the difference between being a Limited Partner and a General Partner?
King offers the unique opportunity of investing either as a General or Limited Partner. As a General Partner, you can earn deductions against your active income, including regular wages. If you invest as a limited partner, you can only deduct your investment against passive income (i.e. stock dividends or bond interest payments).

Can I invest through a family office, trust, IRA, or financial advisor account?
Yes, you can invest via whatever entity type best suits your needs. We also welcome investments via IRAs.

Can international investors invest?
Yes, we accept international investors.

How do I join?
You can get started with your investment today! Reach out to us via our contact page, and a Senior Vice President will contact you directly to discuss how a King Fund fits your portfolio.

Tax Benefits

What are the tax benefits of investing in Oil and Gas?
In the United States, the tax code is very favorable for investors who take part in Oil and Gas investments. Investors have the potential to write off 75% of their investment in year one and may write off the remaining 25% in 2-7 years for a 100% tax write-off on their investment.

What tax documents will I receive?
Investors will be provided with federal and state Schedule K-1 tax documents.

What is a Schedule K-1?
A Schedule K-1 shows your allotted portion of income, gains/losses, and associated deductions for a chosen investment fund.

When will I receive my tax documents?
We will provide your Schedule K-1 tax information by March 31st following each taxable year.

About King Operating Corporation

How long has King Operating Corporation been in business?
King Operating Corporation was founded in 1994 by our current CEO, Jay R. Young.

In 2015, CEO Jay R. Young restructured the investment model to offer investors lower-risk opportunities that are designed to generate steadily increasing returns in the form of Monthly Passive Income (MPI), a multiple on invested capital, and significant tax savings. King Operating Corporation has successfully raised and deployed over $50 million in capital since its inception.

Who is on the leadership team for King?
The King leadership team includes:

Chief Executive Officer Jay R. Young
Chief Financial Officer Rex Gifford
Chief Growth Officer Peter Snell
Director of Operations Chandler Hays Knox
Petroleum Engineer Jay Evans
Geologist Tom Shaw
Geoscientist Paul Gerome

Together, the team has decades of combined experience in oil and gas production and managing funds.

CEO Jay R. Young is a 4th generation Oilman and expert prospector. He is the author of the ForbesBooks published title ‘The Upside of Oil and Gas Investing’ which details the central mission and model at King. Download a copy here.

Learn more about Our Team.

How can I contact you if I have questions?
If you are considering making an investment with King and have questions, please use the Contact Us page to fill out this short form and we will get back to you with answers. If you are already an investor, you may also email us at any time at info@kingoperating.com.

Glossary of Terms

Terms common to the oil & gas investment industry

Exit Strategy

An exit strategy is a contingency plan that is executed by an investor, trader, venture capitalist, or business owner to liquidate a position in a financial asset or dispose of tangible business assets once predetermined criteria for either has been met or exceeded.

Pump

Industrial pumps are essential devices required in every phase of oil and gas operations. Basically, they help transfer process fluids from one point to another.

Proveup

Act of grinding a narrow notch across a surface-breaking indication until the bottom of the indication is located and then measuring the depth of the indication with a depth gauge for comparison to acceptance criteria.

Vertical Market

A vertical market is a market encompassing a group of companies and customers that are all interconnected around a specific niche. Companies in a vertical market are attuned to that market’s specialized needs and generally do not serve a broader market. As such, vertical markets typically have their own set of business standards. They may also have high barriers to entry for new companies.

Basin

A depression in the crust of the Earth, caused by plate tectonic activity and subsidence, in which sediments accumulate.Basins are formed by forces above the ground (like erosion) or below the ground (like earthquakes). They can be created over thousands of years or almost overnight. The major types of basins are river drainage basins, structural basins, and ocean basins.

Flowback

Flowback refers to process fluids that are collected at the surface after hydraulic fracturing operations are completed. The fluids contain both the hydraulic fracturing fluids, and volatile hydrocarbons.

Spud

Spudding is the process of beginning to drill a well in the oil and gas industry. A larger drill bit is initially used to clear a surface hole, which is then lined with casing and cement to protect groundwater. After the surface hole is completed, the main drill bit—which performs the task of drilling to the total depth—is inserted and this process can also be referred to as "spudding in."

Rig

A rig is a drilling platform in the ocean used in the search for natural gas and crude oil in order to sink bore holes. Drilling rigs can sample subsurface mineral deposits, test rock, soil and groundwater physical properties, and also can be used to install sub-surface fabrications, such as underground utilities, instrumentation, tunnels or wells.

Barrel

barrel (bbl) is a unit of volume, almost always used for crude oil and petroleum products. It is equivalent to 42 US gallons or 159 liters. It is used very commonly by the oil and gas sector to report their production, and in the media it is also common to hear talk about the "price of the barrel". This is closely related to the energy unit: barrels of oil equivalent.

Royalties

A royalty is a legally binding payment made to an individual or company for the ongoing use of their assets, including copyrighted works, franchises, and natural resources. In most cases, royalties are revenue generators specifically designed to compensate the owners of property when they license out their assets for another party's use.

Lateral

Lateral means a pipe, chamber or other conveyance used to carry and distribute effluent

Drilling

The term drilling indicates the whole complex of operations necessary to construct wells of circular section applying excavation techniques.

To drill a well it is necessary to simultaneously carry out the following actions (drilling process):

- to overcome the resistance of the rock, crushing it into small particles measuring just a few
- to remove the rock particles, while still acting on fresh material
- to maintain the stability of the walls of the hole
- to prevent the fluids contained in the drilled formations from entering the well.

Proven Reserves

Proven reserves (sometimes called "proved reserves") refer to the quantity of natural resources that a company reasonably expects to extract from a given formation. Proven reserves are established using geological and engineering data gathered through seismic testing and exploratory drilling.

In oil and gas extraction, once the physical shape of a formation is understood, the reservoir is estimated by fluid contacts. Fluid contacts refer to the natural layering of gas, oil, and water in a formation.

Greener

The word “greener” in the oil and gas industry refers to new ways and efficient methods to produce green energy that has a significantly less or no carbon footprint. 

Proved Undeveloped Reserves or PUDs

Proved reserves that are expected to be recovered from new wells on undrilled acreage, or from existing wells where a relatively major expenditure is required for recompletion.

Intangible Drilling Costs (IDC)

Intangible drilling costs (IDC) are expenses related to developing an oil or gas well that are not a part of the final operating well. They include costs that are necessary in the drilling and preparation of wells for the production of oil and gas, such as survey work, ground clearing, drainage, wages, fuel, repairs, and supplies.

Environmental, Social, and Governance (ESG) Criteria

Environmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. Environmental criteria consider how a company performs as a steward of nature. Social criteria examine how it manages relationships with employees, suppliers, customers, and the communities where it operates. Governance deals with a company’s leadership, executive pay, audits, internal controls, and shareholder rights.

Pits

Reserve pits are storage pits that are used in oil and gas drilling operations. They hold mud and wastewater pulled up from the drilling site to keep it from contaminating the groundwater. They are dug next to a drilling rig and are commonly used to hold drilling muds and fluids in natural gas or oil fields.

Casing

Casing is a series of steel pipes that are run into a drilled oil well to stabilize the well, keep contaminants and water out of the oil stream, and prevent oil from leaching into the groundwater. Casing is installed in layers, in sections of decreasing diameter that are joined together to form casing strings. The five types of casing string are conductor casing, surface casing, intermediate casing, casing liner, and production casing.

Casing is typically made from carbon steel, but as the primary structural component of the well the grade of steel used to make the casing, and the specifications of the finished material, are very important.

Tangible Drilling Costs

Tangible drilling costs are the actual direct costs of drilling equipment, such as rigs and machinery. When drilling a new well, about 30% of the drilling costs are tangible. These costs are 100% tax-deductible but must be depreciated over 7 years. 

Fuel

fuel is any material that can be made to react with other substances so that it releases energy as thermal energy or to be used for work. The concept was originally applied solely to those materials capable of releasing chemical energy but has since also been applied to other sources of heat energy such as nuclear energy (via nuclear fission and nuclear fusion).

PDP

Proved Developed Producing (PDP) reserves are defined by the OJFG as “the estimated remaining quantities of oil and gas anticipated to be economically producible, as of a given date, by application of development projects to known accumulations under existing economic and operating conditions.

MCF

MCF is an abbreviation derived from the Roman numeral M for one thousand, put together with cubic feet (CF) to measure a quantity of natural gas. In terms of energy output, one thousand cubic feet (MCF) of gas is equal to approximately 1,000,000 BTU (British Thermal Units). For example, a natural gas well that produces 400 MCF of gas per day operates with a daily production rate of 400,000 cubic feet.

Natural Gas

Natural gas, also called methane gas or natural methane gas, colourless highly flammable gaseous hydrocarbon consisting primarily of methane and ethane. It is a type of petroleum that commonly occurs in association with crude oil.

Petroleum

Petroleum, also called crude oil, is a fossil fuel. Like coal and natural gas, petroleum was formed from the remains of ancient marine organisms, such as plants, algae, and bacteria.

Wellbore

A wellbore is a hole that is drilled to aid in the exploration and recovery of natural resources, including oil, gas, or water. A wellbore is the actual hole that forms the well. A wellbore can be encased by materials such as steel and cement, or it may be uncased.

Frac

Hydraulic fracturing, or “fracking” as it is more commonly known, is just one small method of the broader process of unconventional development of oil and natural gas. Fracking is a proven drilling technology used for extracting oil, natural gas, geothermal energy, or water from deep underground.

Payzone

The pay zone is a term used to describe the reservoir that is producing oil or gas within a particular wellbore. A pay zone is a reservoir or part of a reservoir that contains hydrocarbons that can be extracted economically.

Fields

An oil field is a piece of land beneath which fossil fuels can be extracted for economic value. Most of the world's oil is concentrated in oil fields located in the Middle East, along with other large deposits discovered beneath the ocean's surface.

Formation

Oil and gas are formed from organic material mainly deposited as sediments on the seabed and then broken down and transformed over millions of years. If there is a suitable combination of source rock, reservoir rock, cap rock and a trap in an area, recoverable oil and gas deposits may be discovered there.

Working Interest

Working Interest — a percentage of ownership in a mineral lease granting its owner the right to explore, drill, and produce oil and gas from the leased property.

Landowner

A person who owns land, especially a large amount of land. In the oil and gas industry, the landowner is a person an entity that leases out the land for drilling of oil and gas.

Mineral Rights

Mineral rights are the ownership rights to underground resources such as fossil fuels (oil, natural gas, coal, etc.), metals and ores, and mineable rocks such as limestone and salt. In the United States, mineral rights are legally distinct from surface rights. Surface rights give the owner the right to use the surface of the land for residential, agricultural, commercial, and other purposes. Mineral rights entitle the owner to own and exploit any natural resources found beneath the land.

Three Simple
Steps to Invest

1

Fill out a contact form

2

A Senior Vice President will schedule a 15-min discovery call with you

3

Secure your spot in the current fund if available, or reserve your spot in a future fund

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