ALPHASCEND CAPITAL — Year 1 Deduction Illustration · For accredited investors only, Reg D 506(c)
ALPHASCEND CAPITAL

See your estimated Year 1 deduction

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ALPHASCEND CAPITAL

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.

What this is

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.

Your situation
Most of my income this year is
Filing
Annual taxable income
Investment amount
Federal marginal bracket 37%
State (select your state) 0%
Year 1 Deduction% of your investment 85%
Intangible drilling costs and equipment depreciation typically produce a Year 1 deduction of 75–90% of capital invested, depending on the mix of drilling, equipment, and lease costs.
Year 1 deduction
You invest
$1M
capital deployed
Year 1 Deduction
$850K
deducted from income
Estimated Year 1 tax savings
$296K
$800K deduction × 37% combined marginal rate
Estimated tax at your marginal rate — before & after
Without investment
$740,000
37.00% of $2,000,000
With investment
$444,000
on $1,200,000 taxable income
Illustration at a flat marginal rate; actual results depend on your full return.
Return scenarios — targeted, not guaranteed
Pre-tax MOIC (targeted)
--
Pre-tax IRR (targeted)
--
After-tax MOIC (illustrative)
--
After-tax IRR (illustrative)
--
Tax-equivalent IRR — what a fully taxable investment would need to earn to match, at your marginal rate
--
Pre-tax payback
--
This investment, after tax
--
after-tax multiple on capital
Same pre-tax return, fully taxable
--
e.g. a taxable stock or real-estate gain
Show the year-by-year detail
YearCash in / outDistributionTax effectAfter-tax cashCumulative

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.
About the Fund

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)

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