Individual Investors

The development of domestic energy resources is so vital to America’s national security and growing energy independence, that since 1913 the US government has encouraged new investments by providing unique tax incentives.  For investors in a U.S. Energy partnership, this includes the potential for both upfront tax deductions and long-term tax benefits.

While the specific projects a U.S. Energy investor owns varies to align with your specific income and tax planning needs, typical assets owned by investors include: new drilling projects, pipelines, royalties, leaseholds and existing production.

Currently, the Permian Basin, Eagle Ford and Powder River Basins are presenting the best opportunities for U.S. Energy and its investor partners. As a result of the COVID-19 pandemic, and the resulting decline in the price of oil, several opportunities have opened up in the core of these plays that have attractive rates of returns for our investors.

U.S. Energy provides direct investments, typically structured as limited partnerships, and is not listed on a financial exchange.  The advantage of a Limited Partnership is that for federal income tax purposes it is not a taxable entity. Thus, investors receive and report on their own tax return their share of partnership income, gain, loss, deductions, credits and tax preferences from the partnership’s operations based on the information provided annually in your Schedule K-1 tax document.  This structure creates the flow-through of favorable oil and gas tax benefits to investors.

Following the acceptance of your investment, new investors will receive an Investment Certificate in the mail along with access to their Online Portal Account.  Through the online account, important information relating to quarterly project updates, annual tax documents and distribution information is available. 

For additional support, you can access U.S. Energy’s Investor Relations department by calling 800-636-7606.

An accredited investor includes “any person who comes within any of the following categories, or who the issuer reasonably believes comes within any of the following categories, at the time of the sale of the securities to that person:

(a)   I am a corporation, partnership, trust or other entity with total assets in excess of $5,000,000.  Additionally, I was not formed for the purpose of investing in the partnership.

 (b)   I have an individual “net worth” (the fair market value of my total assets, excluding my principal residence, minus my total liabilities), or joint net worth with my spouse, in excess of $1,000,000.

(c)   I had an individual annual income in excess of $200,000, or a joint annual income with my spouse in excess of $300,000, in each of 2018 and 2019 and reasonably expect to have the same income level in 2020.

(d)   I am an entity (including a corporation or partnership) in which all the equity owners individually are accredited investors as described in either subparagraph (b) or (c) above.  If this statement is marked, then each equity owner must also complete the Purchaser Questionnaire.

(e)  I am a private business development company as defined in section 202(a)(22) of the Investment Advisors Act of 1940

 (f)  I am a director, executive officer, or general partner of the issuer of the securities being offered or sold, or a director, executive officer, or general partner of a general partner of that issuer.

 (g)  I am a natural person holding one or more of the following certifications in good standing, (a) licensed General Securities Representative (Series 7), (b) licensed Investment Adviser Representative (Series 65), or (c) licensed Private Securities Offerings Representative (Series 82).

(h)  I am one of the following entities, (a) SEC and state-registered investment adviser, (b) investment adviser exempt from registration under Section 203(l) or (m) of the Advisers Act, (c) a rural business investment company, (d) limited liability company with assets in excess of $5,000,000 and that were not formed for the specific purpose of acquiring the securities being offered, or (e) any other type of entity that owns investments as defined in Rule 2a51-1(b) under the Investment Company Act in excess of $5,000,000 that was not formed for the specific purpose of acquiring the securities being offered.

 (i)  I am a Family officer or family client, as those terms are defined in Rule 202(a)(ii)(G)-1 under the Advisers Act, meeting the conditions of new Rules 501(a)(12) and (a)(13) respectively.

 (j)  I am a bank as defined in section 3(a)(2) of the Securities Act of 1933 (the “Act”), or a savings and loan association or other institution as defined in section 3(a)(5)(A) of the Act whether acting in its individual or fiduciary capacity; a broker or dealer registered pursuant to section 15 of the Securities Exchange Act of 1934; an insurance company as defined in section 2(13) of the Act; an investment company registered under the Investment Company Act of 1940 or a business development company as defined in section 2(a)(48) of that Act; Small Business Investment Company licensed by the U.S. Small Business Administration under section 301(c) or (d) of the Small Business Investment Act of 1958; a plan established and maintained by a state, its political subdivisions, or an agency or instrumentality of a state or its political subdivisions for the benefit of its employees, if such plan has total assets in excess of $5,000,000; employee benefit plan within the meaning of the Employee Retirement Income Security Act of 1974 if the investment decision is made by a plan fiduciary, as defined in section 3(21) of such Act, which is either a bank, savings and loan association, insurance company, or registered investment adviser, or if the employee benefit plan has total assets in excess of $5,000,000 or, if a self-directed plan, with investment decisions made solely by persons that are accredited investors.

(k) I am a “knowledgeable employee” of a private fund, as defined in Rule 3c-5(a)(4) under the Investment Company Act, qualifies as an accredited investor for the purpose of investing in the fund.