See your estimated Year 1 deduction
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All fields required · For accredited investors only · Confidential · We never sell your information.
For accredited investors only · Confidential
This material is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any security. For accredited investors only as defined under SEC Rule 501.
Direct ownership in producing oil & gas wells, with the tax treatment Congress gives independent producers
See what it could mean for you.
Alphascend Energy Fund LLC gives accredited investors direct ownership in a portfolio of producing oil and gas wells alongside experienced operators. You share in the production revenue, and because the Fund holds working interests, you share in the drilling costs — most of which the tax code lets you deduct in the year they are spent.
Enter your situation below. The page shows the estimated Year 1 deduction, what it does to this year's tax, and how targeted distributions could look over the life of the wells — tailored to your situation from what you enter.
Show the year-by-year detail
| Year | Cash in / out | Distribution | Tax effect | After-tax cash | Cumulative |
|---|
Illustrative only. Targeted returns are estimates and not guaranteed. Cash flows shown per the Manager's current model; distribution timing depends on drilling schedule and commodity prices.
Assumptions behind these numbers
- Capital calls. Capital is called as wells are drilled, per the Manager's schedule (currently ). IRR is computed on called capital. The Year 1 deduction is claimed on capital deployed in that tax year; the calculator applies the slider percentage to the full investment for simplicity.
- Year 1 deduction. The slider percentage of capital invested (intangible drilling costs plus equipment depreciation). The remainder is lease and land cost recovered over time.
- Price cases. Underwriting $55 (approximate breakeven per the Manager's model), Base $75, Upside $90. The Manager underwrites to $55.
- Distributions. Per-dollar schedules for each price scenario from the Manager's projection model, held to depletion with a residual value in the final year.
- Tax on distributions. Ordinary income at your combined marginal rate, after a percentage-depletion shelter assumed at of each distribution. Nonpassive working-interest income is excluded from the 3.8% net investment income tax.
- Life of the wells. Wells are held to depletion. After the modeled years, remaining production value is shown as continued distributions over five further years, taxed as income. The Manager retains the option to sell wells; a sale is not modeled here.
- Deduction timing. For salary and capital-gain income, the current-year deduction is limited to under the excess business loss rules; the remainder is shown carried forward and used the following year. Capital-gain income is taxed at 23.8% federal plus state for the savings estimate.
- Comparison. "Fully taxable" assumes the same pre-tax multiple with the gain taxed once at 23.8% federal plus state.
- Not modeled. Alternative minimum tax, state conformity differences, the 80% NOL limitation, fees inside the distribution schedule.
Alphascend Energy Fund LLC acquires non-operated working interests in development wells in proven U.S. onshore basins, partnering with experienced operators. The Fund's objective is a diversified portfolio across multiple operators and basins; it does not participate in exploratory drilling. Investors own a direct share of the wells through the Fund.
The Year 1 deduction is an acceleration of cost recovery, not a permanent exclusion. Later distributions are taxable income, partially sheltered by depletion, and prior deductions may be recaptured if the Fund sells wells at a gain. Fund economics, underwriting, and operator selection are covered in the Confidential Information Memorandum.
See if you qualify — talk to Matt directly
Alphascend Energy Fund LLC is open to accredited investors.
Minimum investment $250,000 · Reg D 506(c)
No offer. This page is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any security. Any offer is made only to accredited investors by means of the Confidential Private Placement Memorandum of Alphascend Energy Fund LLC (the "Fund") pursuant to Rule 506(c) of Regulation D, which controls over anything on this page. Accredited status will be verified before any subscription is accepted.
Hypothetical and targeted figures. Returns, multiples, IRRs, payback periods, distributions, and tax figures shown are hypothetical illustrations derived from the Manager's projection model and the inputs you enter. They are targets and estimates, not forecasts or guarantees, and actual results will differ, possibly materially. Distributions depend on drilling results, production, commodity prices, operating costs, and timing, none of which is assured. Past performance of the Manager, its affiliates, or any operator is not indicative of future results.
Tax. Tax information is general and illustrative and is not tax, legal, or investment advice. The availability and timing of deductions depend on each investor's circumstances, including the passive activity and at-risk rules, the excess business loss limitation, the alternative minimum tax, state conformity, and the character of other income. Deductions previously taken may be recaptured as ordinary income on a disposition. Distributions from producing wells are taxable income. Consult your own independent tax and legal advisors before investing.
Risk. Oil and gas investments are speculative, illiquid, and involve a high degree of risk, including the loss of your entire investment. Working interests bear a share of drilling and operating costs. There is no public market for Fund interests and transfer is restricted. The Fund is newly formed and has no operating history. Fees of 4% in Year 1 and 2% thereafter, a preferred return, and carried interest apply as described in the PPM and reduce investor returns. Conflicts of interest exist and are described in the PPM.
Information you enter. Figures you enter are used only to generate this illustration and, if you choose, to send it to you, your CPA, or a contact. See our Privacy Policy.
(804) 215-6072 · matt.hoffman@alphascendcapital.com
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