Who is King Royalty Corporation?
King Royalty Corporation, a division of King Operating Corporation, has over 23 years experience in the oil & gas industry. Utilizing this experience and a vast network of industry contacts, King is able to discover high quality hydrocarbon producing acreage which provides stable returns for investors based on proven production. This acreage also provides the potential for continued long-term growth in income via the future development of new wells.
Our Mission Statement
King Operating Corporation has revolutionized oil and gas investing by creating a unique business model for our sponsored programs offered to clients. With targeted investment timelines, scalability, income tax advantages, and most importantly, multiple possible exit strategies, the structure of our sponsored programs may provide a multiple profit potential on invested capital in comparison to other traditional oil and gas industry sponsors.
King’s innovative transaction structure returns invested capital to investors first. King ensures that the investors are returned all of their original investment dollars before we share in the profits. We accept only a minimum of investor equity and then leverage the value of the asset to develop approximately a third of the drilling locations. We work to optimize the value when we divest to a public company in oil and gas investment.
The Company prides itself on prudent operations, capital efficiencies in field and well development, and the ability to fully execute on any selected project. Using state-of-the-art drilling and fracturing technologies, King identifies specific rock formations that ideally have multiple target zones, favorable analogous production histories and ample running room to grow.
We welcome the opportunity to tell you more about oil and gas investments and what we are doing at King.
King Royalty Corporation identifies Royalty producing properties in the most prolific oil producing regions in the United States such as, The Permian Basin, The Eagleford Shale, The Bakken Formation, The Denver Julesberg Basin, and others.
Petroleum Engineers perform a thorough analysis on the decline curves of existing wells to establish baseline income yields
Reservoir Engineers determine the Estimated Ultimate Recovery (EUR) of hydrocarbons in the lease to establish long-term economic benefits
Veteran Land Men verify clear title to the Over-Riding Royalty Interests (ORRI)
Industry Experts perform thorough due diligence on the Drilling Operator to ensure continued development and production of the field
Royalty Investing Benefits
Predictable and stable investment returns
Qualifies for 15% deduction of gross income for depletion allowance
Investment in Royalty properties allows investors to defer capital gains tax on the profits from the sale of like-kind real estate via Section 1031 of the Internal Revenue Code
Royalty producing properties are considered investments in real estate and thus deemed a “like-kind exchange” of any other type of real estate that has been held for investment purposes (Ex: commercial real estate, apartment buildings, storage units, etc.)
Royalty Interests and Overriding Royalty Interests (ORRI) in producing properties do not generate Unrelated Business Taxable Income (UBTI) and thus are eligible to be held in IRA and other qualified accounts
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