Non-Correlated Alts & Tax-Advantaged Energy Investments, With Alternative Wealth Partners

Alternative Wealth Partners was a presenting partner at Alts Expo 2022, a one-day virtual event hosted by AltsDb on December 8, 2022. In this webinar, Kelly Ann Winget presents AWP Diversity Fund I LP and AWP Energy Fund I LP.

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Click here to visit the Official AltsDb Partner Page for Alternative Wealth Partners. On this page, you can learn key details about this opportunity, as well as request more information from the sponsor.

Webinar Presenters

Webinar Highlights

  • An overview of AWP Diversity Fund I, which is deployed into 25 portfolio companies and has already initiated distributions.
  • Kelly’s focus on bringing a unique perspective to the alternatives industry, with an emphasis on American-Made products and traditional asset classes such as energy and manufacturing.
  • An overview of the fee structures, portfolio allocation, and composition of returns for AWP Diversity Fund I.
  • Details on AWP Energy Fund I, which invests in energy assets (plus the tax benefits associated with this asset class).
  • A breakdown of the energy fund’s portfolio, and how it is allocated to new drillings, reworks, DUCs, and more.
  • Live Q&A with webinar attendees.

Connect With Alternative Wealth Partners

Webinar Transcript

Jimmy: Kelly, there you are. How are you doing this morning?

Kelly: I’m doing fine. You’ll have to bear with me because I have a little bit of whatever’s going around.

Jimmy: I think we all have it, so no worries.

Kelly: We’re gonna go through two presentations this morning, actually. We’re gonna try to anyways. Because we have two offerings because we’re closing out the year, we have a lot of things going on. We’ll just dive right in because I wanna leave a lot of time for Q&A, because that’s everybody’s favorite part, especially when you’re dealing with somebody you’ve never heard of and, you know, where did this person come from? So, we’ll jump right into it. I’m Kelly Ann Winget, the founder of Alternative Wealth Partners. It’s a private equity firm that I started in 2020 after basically a series of experience in the institutional family office space that wasn’t the best as a young female person. So, I got my start in oil and gas a little over a decade ago. I’m five generations in oil and gas, so I was gonna find my way there one way or another.

We started our private equity firm in the summer of 2020, right in the middle of the pandemic. It took us about eight months to put together our first offering, which is this one, the AWP Diversity Fund I. In the last 12 months, we’ve raised $15 million. We’ve deployed that in over 25 different portfolio companies. We’ve been able to pay out three rounds of dividends so far. Some of those investors have seen a 2% return in the first 30 days of their investment. So, we’ve been pretty aggressive. But the whole point of why we started what we did was because I didn’t see a lot of diversity in the investor base of these alternative investments. I’ve been exclusively raising capital in the alternative private placement space since 2012. We’ve raised almost a billion dollars in private capital, and that’s from retail investors, Main Street investors, a hundred thousand dollars at a time. We started our firm in 2020, we launched our first fund in 2021, and we’ve raised $15 million, and we’ve launched a second fund, which is our energy fund which we’ll go over next. We launched that last month. So, the goal here really is to kind of amplify your portfolio. A lot of retail investors don’t have access to the type of deals that us and the family office and institutional space have access to. And I wanted Main Street investors to be able to diversify their portfolio into privately-owned assets in the alternative space.

So, my experience has been really in the old boys club, and I’m sure this makes up a majority of your audience today, but there’s been kind of a need for a different perspective when it comes to fund management and that’s why I decided to step into my role as a fund manager and launch Alternative Wealth Partners. We just have a different perspective when it comes to the type of investments that we wanna participate in. And this includes things that I like to support, which is American-made. I like the traditional asset classes, energy, manufacturing, infrastructure, real estate. But I wanted to package all of those things into one place to give investors access and returns that they weren’t experiencing from other traditional fund managers.

So, this is kind of an overview of the diversity fund. We’ve created a completely blended portfolio of alternatives. So, we have in the future slides, we’ll kind of go out over the breakdown, but we’re raising $50 million. We’ve raised 15 so far. We’re actually closing this fund in January, the end of January, because we’ve bought 25 different portfolio companies. We are already seeing cash flow on those assets, and we actually have assets that are getting ready to exit about two years early. So, we’re kind of ahead of schedule. So, we’re just gonna close the fund because the most important thing is I don’t charge any management fees. So, this is unusual, but the point of this is because this is the first fund that I’ve managed on my own. And in order to establish the trust in our interest to be the same, I didn’t charge a management fee. I don’t think it’s right for managers to charge fees when their assets don’t do what they’re supposed to do. So, I only benefit if the assets do what we say we’re gonna do. So, if we hit our projections, then I make money. If we don’t, then only you make money. So, this is how we’ve set up our fund. It’s a traditional 80-20 split after a 10% preferred return. That’s the reason why we’re closing in January because we’re already starting to see these returns. And if I let new investors come in late next year, they’ll dilute the fund for no reason and just be walking into a cash cow basically.

Last year, we really focused on tax deductions. We were able to give investors a 47% deduction, and this is because of our investments in oil and gas. So, this is one of my favorite things to talk about. And if you’ve seen me on Andy’s podcast, I’ve talked about this several times. My background’s in oil and gas. It’s what I like to invest in. And it’s because you can really leverage those tax benefits while staying diversified and mitigating a lot of risk that comes with oil and gas, investing by staying diversified. So, when I say we got a 47% tax deduction when you invest in oil and gas, you could deduct that from your active income. So, the partners that came into the fund and were active partners in those drilling projects, some investors invested a million dollars and saw a $470,000 loss that they were able to offset their active income with, which was significantly over a $100,000 tax savings for them. Now, they won’t have that this year because we didn’t do as much drilling as we did last year. They will see some sort of tax deduction for this year, and that’ll just show up on their K1.

This is me in Jamaica. So, one of our portfolio companies is a Jamaican coffee company. We own a thousand acres in the Jamaican Blue Mountains. We work with partners that have been growing coffee up there for generations. Basically, we’ve partnered with them to give them irrigation technology and fertilizer, and then they co-op with our commercial grow property, and I’ll talk about that here in just a second. But we’ve really diversified this package of assets. And I’m young, I’m 32 years old, but all of my partners in this fund have about as much experience as I’ve been alive in their industry, so I make sure that I partner with the right people. I might not be the expert in that industry, but I definitely know where the expert is and we get to do lots of really fun deals together, whether they’re in this diversified fund or we help structure deals outside of our portfolio.

So, this is kind of an overview of what our breakup is. We’re pretty evenly split across energy, real estate, manufacturing, what I call private equity and commodities, things that fall into our private equity sector like FinTech, summable retail companies, any type of small business that we’ve either done private lending on or we’re helping with equity partnerships. So, we stay diversified. This helps mitigate a lot of risk. It also helps boost our overall returns. The way that we negotiate our deals gets a lot of the overhead fees and also preferred equity in these companies, which, in a traditional investment for investors, they might see an 8% to 10% return. And because we’ve been able to negotiate better deals as an experienced fund manager, we’re able to get those returns up to 15% and 20%. Again, we’ve already been generating cash flows since Q4 of last year. So, we raised a majority of our money in 2022. We had about $5 million deployed by the end of 2021. Those investors that came in in January last year saw a 2% return in less than 30 days. So far, we’ve hit an annualized return of over 10% and we’re on track to hit our first double-digit quarterly return in Q1 of next year.

So, the return makeup is pretty split between a small tax benefit for those that invest with a cash investment. We do have several investors that come in through a retirement account. A portion of that will be a dividend returned. So, part of that projected 3X return is going to come from your dividends. And since we’re already in pay status, the investors are receiving quarterly dividends as of today. So, this is just kind of an example of some of our portfolio companies that we can disclose. Combined, there’s hundreds of years of experience in these industries. We’re really heavily focused in our partnerships in oil and gas just because we have a second fund that is focused in oil and gas. So, these are the majority of the people that we can share with you guys. Another really kind of a cool unique investment that we’ve been able to make is through Ellevest. It’s a robo-advisor type company. They’re providing financial services specifically for female investors. So, it’s a really unique opportunity. We get to partner with Sallie Krawcheck on things. So, it’s really opened up a lot of doors for us as far as the access to deals we have.

So, we’re just gonna do a little partner spotlight. Pontem Energy Group is a subsidiary of Pontem Energy, which if you pay any attention to oil and gas, they just did, like, a $1.9 billion deal with Devon Energy. So, you know, we get access to these family office institutional-type private deals that we’ll never see the light of day, but I give access to those deals through my relationships and my network that I’ve built over the last decade.

Another partner spotlight is our Blue Mountain Best. This is our coffee company down in Jamaica. We actually have an exit coming up in this company, which is really cool because we’ve been able to really monetize this group of individuals. We’ve been able to do a lot with our capital down there. We’ve built roads, bridges, infrastructure. It’s really been game-changing and life-changing for the individuals down in Jamaica. We’ll see probably a 2.5X return in less than 10 months on that investment alone. So, that’s just an overview of Diversity Fund I.

This is how you can contact us. If you have any interest in the diversity fund before we close it out in January, you can reach out to [email protected] or info@ and somebody will be able to reach out to you. We will have our decks available. I’ll send those over to Jimmy and Andy so that they can send ’em out to everybody that’s kind of participated. Do you wanna take a break and do questions on the diversity fund before we go into the energy fund?

Interviewer: Let’s hold the questions for now. I think you should go into the energy fund and then we’ll get to the questions at the end.

Kelly: Okay, great.

Jimmy: Thanks, Kelly.

Kelly: So, since I’ve already told you what I’m all about, we’ll go right into what the energy fund is going to do. So, we’ve done a lot of drilling in our diversity fund, but because that is a diversified portfolio, we do not want to expose our current partners to any more drilling risk. So, any additional drilling, we’ve all piled into our energy fund. This is specifically designed for tax benefits. So, if you’re not familiar with the tax benefits of oil and gas, when you invest in an oil and gas development deal drilling, you get to deduct 100% of your intangible drilling cost, and for 2022, 100% of your tangible. Now, that gets scaled back over the next five years. So, I think next year it’s 80% and then it goes down from there.

So, 2022 is really kind of your opportunity to maximize that tax benefit. However, it will go on for the next few years that you can take advantage of that. The IDC deductions are really powerful, especially if you’ve had a high-income year or a large capital gain or something. So, this is how it kind of competes with real estate tax benefits. This is stuff that you can actually deduct and have a realistic tax savings against what you’re experiencing in your regular income or gain situation. So, it’s a smaller $25 million fund. We’re gonna be focusing on new development and reworks in several different basins. The minimum is $100,000. There is a fee on this. It’s a 1.5% fee within an 80-20 split. There is no preferred return. This is just because there is already a lot of income that’ll come in on this fund by year three. We’re expecting return of capital by the end of 2024.

So, we’re expecting 50% plus IRRs, and this is pretty normal and standard in oil and gas. If you’ve ever experienced a good oil and gas project, I know some of you have probably invested in oil and gas just for the tax deduction and that’s about all you saw. We’ve gotten really good at actually knowing where the oil is and going back into those productive fields. I also work with owners and operators and industry professionals who have been doing this for decades and have done multiple billions of dollars worth of transactions in oil and gas deals.

So, we’re gonna target a 75% tax deduction. There will be tax benefits every single year of this fund, probably up until the third or fourth year when the revenue will start offsetting those deductions, meaning that we’ll start making too much income to take the deductions anymore. They basically wipe each other out. So, AWP currently has over a hundred different wells. I personally am invested in four different basins. We are gonna be in Oklahoma, Texas, North Dakota, Wyoming, and Oklahoma. We’re going to split our allocation. We’re gonna have a little bit of production and that’s just to kind of give us a cushion of cash flow and to protect a lot of our capital. I don’t like to lose money. Other people don’t like to lose money. So we try to make sure that we’re investing the right way to protect our capital at all costs. We’ll do a little bit of reworks. And we’ll invest in drilled and completed wells. This means proven production and then doing a lot of new drill and that’s just to maximize our tax benefit.

So, we’re gonna focus in the middle of the country. These are these most productive, profitable basins in the country. We’re gonna be working with both small owner-operators and buying working interests under large oil majors, Exxon, Devon Energy, Occidental, etc. So, if you don’t know anything about oil and gas and you have the question of what about Teslas, I don’t care about how many Teslas are on the road. They have to charge themselves, and natural gas powers them. So, everybody can buy an electric car for all I care because all it does is increase the price of oil. So, you can see there’s a large deficit of what we are producing today and what we use as consumers. So, just in the oil space alone, I mean, we’re talking about a 10 million barrel a day, per day, deficit, and natural gas, it’s absolutely insane. It’s 2.6 trillion. Okay? It’s significant.

We have the capacity to drill and meet these demands here domestically. And I think that we’re gonna see, just like an oil industry opinion, is that we’re gonna see more domestic production over the next five years. We’re gonna be battling the administration on, you know, what that cost is gonna look like to the consumer. But I think that we’re gonna see high oil prices at least for the next foreseeable future, unless there’s some significant change. So, the way that this is gonna work as far as returns and tax benefit is that the first two years are gonna be focused on development. This is where you’re gonna receive your highest tax benefit, and then the third, fourth, fifth, and so on years, you’re gonna be seeing that high income.

Now, there’s no planned exit strategy because oil is a income-producing asset. You can own it in perpetuity. This is a generational asset, so I am literally the physical embodiment of that. I have assets that are over 100 years old. So, it will, realistically, keep these assets in the fund with the investors looking for long-term cash flow. If an investor does want to sell their interest, then, you know, I’m personally interested in it, in that interest, and then also the other partners will be given the option to buy more interest in the fund.

So, these are some of our larger oil and gas partners. Pontem and Labrador Energy are both doing over $100 million worth of drilling projects next year. We’re gonna be partnering with them on a majority of our deals. And this is, primarily they have, Labrador Energy specifically has about $250 million worth of drilling to do. Up in the Wilson Basin, we’re gonna come in as an equity partner. We’re gonna have a lot of leverage there, which means we have a significant tax benefit. You get a 2X return on your capital just from your tax benefit alone in their project. So, it’s a very unique deal. It is much higher risk than what we’re doing with our other partners. However, the return potential is, you know, very, very significant. Again, here’s our contact information. If you reach out to [email protected], we’ll be happy to send you over a deck.

Jimmy: Fantastic. Well, thank you, Kelly. We have a ton of questions to get to.

Kelly: Great.

Jimmy: So, I’m glad you saved a lot of time toward the end. We’ll take questions for about 10 or 15 minutes here. I’m counting 12 questions from the audience, so a really engaged audience this morning. And if you do have questions, and in case you missed this remark from me earlier, please use the Q&A tool in your Zoom toolbar to submit questions. We’ll be having live Q&A sessions with most of our presenters throughout the course of the day. But Kelly, to get back to you now, the first question that came in asks, “Are most of the investments made by the fund about 500,000? Have you made any outsized bets that make up a significant chunk of the portfolio?”

Kelly: Yes. So, we’ve made two considerable bets that kind of basically protect our entire assets. One of ’em is an oil and gas deal that was out in West Texas, both split between the Permian Basin and the Delaware Basin. And that project alone is worth more than the entire fund under management now and we have a $2 million investment there. So, that helps me sleep at night because the entire portfolio could go to zero except for that and we’ll be fine. And that one is we’ve been able to hedge 10% of our production outta that field to cover 111% of our debt. So, it’s one of the most conservative high… I mean, it is what protects our entire fund.

Jimmy: Terrific. What’s the lifecycle/exit plan for Diversified Fund I? I think this person meant Diversity Fund I, right?

Kelly: Yes. And so, that one is a five-year fund. We’ll exit it completely by the end of 2026. We operate on a weird fiscal year, so February is our fiscal year. So, we’re one-off from the typical quarter. So, January 31st, 2027 is the end of our fund. By that time, we expect to be fully exited from those assets, whether we’ve sold it to individual partners, myself, or we’ve sold it to the market. We already have exits for three of our assets that are coming up in the next quarter. They’re about two years early on that. So, there’s a lot of movement, there’s a lot of interest in these types of projects and that’s just because I’ve been putting these deals together for five years.

Jimmy: It sounds good. Patrick asks, “Kelly, will AWP Energy Fund engage in any enhanced recovery operations from existing producing wells?”

Kelly: Yes. So, we’ll do some reworks and go into producing fields, yeah. It’s not all new development, so it’s gonna be a blend.

Jimmy: Gotcha. Richard asks, “Is the energy fund focused on oil or natural gas, and what is the break-even per barrel?”

Kelly: Both and most of the partners we work with have a break-even somewhere between $7 and $15 barrel of oil.

Jimmy: And then a related question came in a short time after that. “What’s the split between oil and gas?”

Kelly: I would probably say 60% oil and 40% gas. We have some partners that really like the gas and it’s at $7 or something today. I haven’t looked this morning. But most of the people have gotten really good at drilling at $2 gas, so, you know, we’re pretty excited about $7 gas.

Jimmy: Good. Let’s see. Several more questions just coming in here. We’ll try to get to as many of these as we can. And Kelly, thanks again for saving so much time for some Q&A at the end.

Kelly: There’s always some questions.

Jimmy: Yeah. And do you anticipate ever doing more drilling in the diversity fund?

Kelly: So, we’ve done about 30% of our portfolio in oil and gas, and we have opportunities to do offsets in our successful wells. And just because of the way that I have this fund structured and the exit strategy, we’re just moving those offset developments into the energy fund. There’s just no point. The investors that are in the diversity fund are more concerned about capital preservation and return than they are the tax benefit. So, if we’re going to have a tax-advantaged asset, it’s gonna be drilling in the energy fund.

Jimmy: Yeah. And then a related question, “Do the new drills come with a lot of risk?” How would you characterize the risk there?

Kelly: So, there is risk in oil and gas always. Some of these projects, the risk is mitigated by the fact that we’ve already taken the risk in the diversified fund by drilling these wells. Those that were successful, we’re drilling offset, so we’re just literally poking a hole right next to it. The other one is, is that we have, you know, 40 years of experience with the larger partners. They’re developing fields that are already in production and their operators are like EOG and Exxon. And so, I think we feel pretty good about their success rate. So, we’ve mitigated a lot of risk by staying diversified in the basins and the drilling strategy. Again, I don’t like to lose money, so we try to mitigate as much risk as possible.

Jimmy: Yeah. Who does like to lose money? Yeah.

Kelly: Yeah.

Jimmy: Right? Me neither.

Kelly: It’s part of some people’s strategy.

Jimmy: Well, it’s a tax write-off at least, I guess, but…

Kelly: Yeah.

Jimmy: But you try to avoid it. “What’s the estimated life of the energy fund?” We had that question come up.

Kelly: We’re projecting return of capital in the third year from oil revenues. So, we should have our capital off the table by the end of the third year. Then it’s really up to the investor how long they wanna stay on that cash flow train. I’m happy to buy back interest at that point. It’s really gonna be up to the investor, what their interest is. They’ll just be paid at whatever the market value of that asset is because remember you get your…especially in these larger oil and gas deals, you’re gonna see a majority of your production in that first 36 months. So, when you sell your interest, you’re gonna be selling at a discount because you received the first three years of cash flow.

Jimmy: What type of tax documents will investors in this fund or in both the funds be receiving?

Kelly: A K1. It doesn’t have a choice. The energy fund, you do actually have the choice of being an active partner or not. So, if you’re invested in the energy fund, you will select if you’re gonna be an LP or a GP, or an active LP or a passive LP. And that just exposes you to unlimited risk if you take the GP route and that’s why you get your tax benefit. Now, we’re keeping reserved to make sure that your cash calls aren’t ridiculous or at all. So, we’ll be keeping about 15% in just sitting around to make sure that we can cover our drilling expenses without having to go back to the investors.

Jimmy: Very good. “Is there any time benefit for investors in the energy fund investing now in 2022 versus investing six months later aside from the tax benefit?”

Kelly: Not really. I mean, we have literally, like, 15 days for you to fund for you to get the tax benefit for 2022. You’re just gonna get closer to that dollar-for-dollar deduction today than you are gonna be in January.

Jimmy: Got it. Let’s see, a couple questions…

Kelly: We get to drill faster, which means that we get a term production online faster, which means you get a check faster.

Jimmy: Yep.

Kelly: You know, we can only drill as fast as we have the money.

Jimmy: That’s a good point there. A couple questions relating to politics here I’ll ask you. The first one is, “Given the political landscape and the current administration’s focus on climate initiatives, do you have any concerns about negative impact of regulation on the energy sector as a whole and on your fund’s strategy?”

Kelly: Regulation just makes oil and gas more expensive, so we just make more money.

Jimmy: Great answer. Second question kind of along…

Kelly: We can’t stop drilling that’s already started. So, all it does is hurt people when you turn off production, which there’s a lot of mixed messaging happening, like don’t drill but also drill. And basically, the administration said that they were buying all of the reserves back at $70 and $75 oil. So that just kind of gave a flag to the industry that they have a guaranteed buyback price at $70 on oil and they’ve been drilling at 45 for the last 10 years, so…

Jimmy: Got it. Very good. We need oil one way or another, and if the supply gets restricted, the price goes up, which makes it more profitable for you. I get that. What about the new Congress? Is there any concern that they’ll take away the tax benefits of IDC and other related drilling tax credits?

Kelly: Well, we can see that in the tangible drilling where it’s getting phased out over the next few years. So, we’re trying to take advantage of that now. You’re gonna get the most tangible write-offs up-front this year and next year. The intangible drilling cost deductions have been around since the beginning of time and they tried to do it last year and it was completely shot down. So, there’s no reason to get rid of it at this point. If you would have, like, a mass exodus of people supporting oil and gas and it would just be really, really bad all around.

Jimmy: True. A question from Bob. Bob, great to see you here, by the way. I’ve known Bob for several years. He asks, “Are you looking at solar or hydrogen investments?”

Kelly: Not in this energy fund, but yes, there is significant renewable projects on in the pipeline. It’s for a much larger fund, which, you know, a sneak preview is next year. We’re gonna be focused on, you know, basically energy from waste projects.

Jimmy: A great question, Bob. And yeah, a nice sneak peek to what may be ahead for Alternative Wealth Partners there. Bill asks, let’s see, “So you can invest $100,000 and will get a tax deduction of 100% in 2022. Can you clarify that?”

Kelly: Yeah. You’re gonna get pretty much dollar-for-dollar deduction in 2022, but, I mean, you’re cutting it close. I do like to have a Christmas break. And I was sending wires out to oil companies at a wedding on New Year’s Eve last year, so I don’t want to do that again. So, if you’re interested in doing oil and gas investing this year, you do have all year to invest like this. You don’t have to wait ’til December. But if you are ready to make a decision, like, I need to know like in a week and so that I can get those into the hands of the oil company so that they can start their drilling process because they’re allowed to, as long as they spud so start their well by March 31st, 2023, you get that tax incentive for 2022, but you have to fund December 31st, preferably within the next two weeks.

Jimmy: Right, right. You don’t have to wait until December or even the last week or the last day of the year, but I know a lot of times investors do.

Kelly: Yes.

Jimmy: They tend to be procrastinators for good reasons and bad, I suppose.

Kelly: Yes.

Interviewer: Bo asks, “Do you hedge the oil and gas production, and if so, by how much?”

Kelly: So, it really depends on which partner we’re using. So, I’m the money person and I partner with people who know a lot more about oil and gas projects than I do, both operators and my bank nerds I call them because they have years of experience from the financial financing side of oil and gas. Our largest partner in the oil and gas space has significant… They’ve done over $20 billion worth of financial deals in the oil and gas space, and they’re my hedging experts. But yes, everybody hedges in one way or another, and typically it’s to protect our capital.

Jimmy: So, we mentioned renewables a moment ago in one of those other answers. Alan asks, “If you can compare and contrast returns on energy funds focused on oil and gas versus on renewables, how does that break down for you?”

Kelly: So, renewable investments are fine. You’re just gonna be waiting a lot longer to see that return of capital and then return, right? So, you’re looking at 7, 10 years. In oil and gas, it takes somewhere… Well, it takes longer to drill now because those schedules are so hard. It’s very hard to get rigs and people out into the field right now. But typically, you’re seeing return within six months of a completed well, and then, typically you’ll see a return of capital in the first two years. So, you’re seeing return a lot faster than renewables. It just depends on your investment strategy. You’re gonna see a higher, quicker return in oil and gas, but you might see a longer-term higher return in renewables. It’ll just take 10 years.

Jimmy: Very good considerations to keep in mind if you’re looking at those two types of investment products. Another question from Richard here. He asks, “Are investors in the energy fund coming in as general partners? How are investors protected?”

Kelly: So, that’s up to the investor. If they want to see the 100% tax benefit, they have to be an active LP or a GP election, and that’s because you don’t get the deduction if you’re not taking the risk. So, you will be exposed to cash calls if the fund cannot cover those cash calls. Now, we pre-fund AFEs, which is our bill to drill. And that’s because one, we wanna maximize our upfront tax benefit, but also it kind of saves us from, you know, a bill down the road, whether that be a surprise amount or not. We dealt with that a little bit because prices in the field went up 30% this year. So, some of the AFEs that we funded in December of last year, we did have a cash call on throughout the year. Again, we’re gonna keep a reserve to help protect the GP interest by having that cushion to cover those cash calls. But you can come in as an LP that doesn’t expose you to that risk. You’ll get a passive loss and you’ll just get income. So, you won’t get the tax benefit really, but you will benefit from the income of those oil and gas projects.

Jimmy: Very good. Alvin asked a question that was directed to me, but I did want to just address it. He asked if I could provide the link to the cheat sheet for the individual funds being presented. So, we did create a table that has all of the funds listed throughout the course of the day. I will post a link to that in the chat in just a moment, Alvin, so sit tight for a minute. We’ve got time for one or two more questions here. We’re almost out of time. Kelly, I really appreciate you being here with us today. Last question here, I think we’ll get to, maybe we’ll get to a couple of them. “Kelly, you mentioned that you think U.S. energy production will be ramping up in coming years. There seems to be a lot of political opposition to that idea. Do you think the economic reality will force an easing of the restrictions, or do you know something that we don’t?” Or maybe you just reiterate the question you gave before, which is restrictions lead to higher profits for folks like you oftentimes.

Kelly: Yeah. I mean, there’s this huge kind of mixed messaging happening of, you know, we need to back off drilling but also need to drill more because we don’t have any oil and the prices are all high and this is what’s happening with inflation. The reason why we have economic growth is because of cheap oil. If we don’t have cheap oil, we can’t rebuild. You know, companies can’t ship product. It’s gonna be really interesting to see what the numbers are out of December of the shopping season and how much money was actually being spent and moved around because, you know, cost of moving goods is, like, way up. You know, I know that I go into a wild wormhole of inflation and crazy thoughts about this. So, if you are interested in my feedback on that, there are two podcasts with Andy that go into this. And then I do see another question. I wanna make sure that everybody understands. The diversified fund is closing in January. You have until January 31st to get involved in that fund.

Jimmy: Good. I was just about to ask you that. So, that’s the deadline there. And I think we actually got through all the questions. Thanks for saving so much time at the end. I will also link in the chat to those two podcast interviews that you did with Andy Hagans, the co-founder of AltsDb, who by the way, will be joining us in a mere 25-minute series moderating the first panel of the day. But until then, Kelly, thanks so much for joining us today. Could you tell us one more time how folks can reach out to you if they’re interested in learning more? I did post a link to your website, Is there any other way you’d like them to get in touch with you?

Kelly: So, you guys can email IR, so Industrial Relations, [email protected]. You can also find me on LinkedIn. I am the only Kelly Ann Winget, I’m pretty sure, on LinkedIn. You can also visit my personal site, which is if you wanna learn more about what I’ve done and all the things that I’ve published all over the place. So, there’s lots of many different ways that you can get ahold of me. I manage my own LinkedIn. So if you message me through there, I am the one that messages back, but all the other social medias are run by somebody else. So, eventually, it’ll get to me, but emailing [email protected] or contact me through LinkedIn is the best way to get ahold.

Jimmy: Perfect. I’ve just posted that email address in the chat as well. Kelly, I’m gonna have to let you go, but I really thank you for participating with us today. I really appreciate it.

Andy Hagans
Andy Hagans

Andy Hagans is co-founder and CEO at AltsDb, and host of The Alternative Investment Podcast. He resides in Michigan.