Oil & Gas Tax Savings Calculator — Alphascend Capital

For accredited investors only  ·  Confidential

matt.hoffman@alphascendcapital.com

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.

How much are you paying the IRS
that you don’t have to?

Run your own numbers. See exactly what a qualifying oil & gas investment could save you in Year 1 — and what it could return over the life of the fund.

Your situation
Annual income $25,000,000
Investment amount $25,000,000
Federal tax bracket 37%
State of residence 0%
Year 1 write-off
% of your investment
85%
Reflects potential treatment of tangible drilling costs as immediately deductible under current legislation. Highly advantageous if your situation qualifies — confirm with your independent tax advisor before relying on this figure.
Year 1 tax impact
You invest
$25M
capital deployed
Year 1 write-off
$21.25M
deducted from your income
Tax saved
$7.86M
back in your pocket
Return scenarios
Fund underwrites to this level. Conservative baseline with proven Eagle Ford production data.
Net IRR (targeted)
23%
After-tax IRR (est.)
~38%
Return multiple (MOIC)
1.4x
Payback period
~4.75 yrs
Total estimated outcome over 4–6 years — fund return + Year 1 tax savings combined
$42.86M
$35M estimated return + $7.86M saved in Year 1
$25M
Capital
deployed
$7.86M
Tax saved
Year 1
$35M
Fund return
(estimated)
$42.86M
Total
outcome
5-year cumulative picture
Year Tax benefit Est. distribution Cumulative benefit
Year 1 write-off year$7,862,500—$7.86M
Year 2$1,387,500$1,500,000$10.75M
Year 3$1,387,500$2,500,000$14.64M
Year 4$1,387,500$3,000,000$19.02M
Year 5$1,387,500$3,500,000$23.91M
5-year total$13.41M$10.5M$23.91M

Illustrative only — based on selected scenario and base case production assumptions. Targeted returns are estimates and are not guaranteed. Distributions begin once wells produce (typically months 6–12). Actual results will vary based on commodity pricing, well performance, and other factors.

Ready to see if this is right for you?

Alphascend Energy Fund LLC is open to accredited investors.
Minimum investment $250,000 · Reg D 506(c)

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Important Disclosures

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. Interests in Alphascend Energy Fund LLC are offered solely to accredited investors pursuant to Rule 506(c) of Regulation D and only by means of the Fund’s Private Placement Memorandum (PPM) and governing documents, which describe significant risks and should be read in their entirety before making any investment decision.

Target returns, IRR projections, MOIC figures, and tax benefit estimates presented in this calculator are estimates only, are not guaranteed, and are based on assumptions that may not materialize. Past performance of any investment, operator, or market does not guarantee future results. Oil and gas investments involve significant risks, including but not limited to commodity price volatility, operational risks, regulatory changes, and the possible loss of the entire principal amount invested.

Tax information presented is for general illustrative purposes only and does not constitute tax advice. The tax benefits described — including intangible drilling cost (IDC) deductions, tangible drilling cost (TDC) deductions, depletion allowances, and passive activity loss treatment — are subject to individual circumstances, IRS rules, and applicable law, which may change. Prospective investors should consult their own independent tax advisors regarding the tax implications of any investment.

All figures shown are pre-fee estimates unless otherwise stated. Management fees of 4% Year 1 and 2% thereafter apply. Waterfall: 100% return of capital → 5% preferred return → 80/20 profit split. See the PPM for full fee disclosure.


ALPHASCEND CAPITAL MANAGEMENT CORP.
4870 Sadler Rd Suite 300 · Richmond, VA 23060
(804) 215-6072  ·  matt.hoffman@alphascendcapital.com  ·  alphascendcapital.com

© 2025 Alphascend Capital LLC. All Rights Reserved. · Custody: Pershing LLC / BNY Mellon · FINRA · Audit: PCAOB (Hogan Taylor) · Reg D 506(c) · Section 3(c)(1) Exemption