Courtney MoellerIron Horse Energy Funds Manager

Making 20-60% annualized returns from oil wells isn't the crazy part... #oilandgas

Name: Making 20-60% annualized returns from oil wells isn't the crazy part... #oilandgas
Uploaded: 2025-05-14T16:30:11+00:00
Duration: 37 s
Channel: Courtney Moeller
Description: Courtney Moeller explains how investors in oil/gas wells receive monthly cash flow once wells begin producing and that early-year annualized returns can…

14 May 2025 · 1 min

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Courtney Moeller explains how investors in oil/gas wells receive monthly cash flow once wells begin producing and that early-year annualized returns can be roughly 20–60% depending on oil price and output. She also highlights a major tax benefit: intangible drilling costs (IDCs) let investors deduct a significant portion of their investment in the first year against any type of income.

Questions this video answers

20–60% annualized returns

Monthly

Intangible drilling costs (IDCs) — allow deduction of a significant portion of the investment in the first year, usable against any type of income.

Chapters

Once the wells are online, they're producing oil or gas, or a combination of the two. Now, every month, oil and gas is sold, and investors receive monthly cash flow based on their ownership percentage of the well. This is where returns start rolling in. And depending on the price of oil and how much oil is actually coming out of the ground, you could see anywhere from 20 to 60% annualized returns in those first few years. And this is also where you're going to see that first big tax benefit. Intangible drilling costs, or IDCs, allow you to deduct a significant portion of your investment in the first year, good against any type of income.