How is well production reported to investors?
Investor Reporting
Working interest owners receive detailed production and revenue reports to track their investment performance.
What You Receive
| Report | Frequency | Contents |
|---|---|---|
| Revenue Statement | Monthly | Production volumes, prices, costs, net revenue |
| Production Report | Monthly | Daily production data, decline tracking |
| Schedule K-1 | Annual | Tax information: income, deductions, depletion |
| State Filings | Public Record | Official production records filed with state |
Sample Monthly Statement Breakdown
Gross Production: 2,450 BBL
Less: 20% Royalty (490) BBL
Net Production: 1,960 BBL
Price Received: $74.50/BBL
Gross Revenue: $146,020
Less: LOE ($18,500)
Less: Severance Tax ($6,726)
Net Revenue: $120,794
Your 2.5% Share: $3,020
Do not take our word for it — look the wells up yourself.
We publish the actual state regulator filings for 2.24 million wells across Texas, Oklahoma, Kansas, New Mexico, Colorado and New York — what each county produces, how deep the wells run, who operates them, and what they have made to date. Free, no signup, sources documented.
In Simple Terms
As a working interest owner, you receive regular production reports showing exactly how much oil and gas your well produces. Most operators provide monthly reports that include daily production volumes, oil vs. gas breakdown, prices received, operating costs, and your net revenue.
You'll also receive annual K-1 tax documents showing your share of income, deductions, and any depletion allowance for tax filing.
Legal / Technical Details
Production reporting follows industry standards: (1) Monthly revenue statements showing gross production, net production after royalties, commodity prices, severance taxes, LOE, and net revenue; (2) State regulatory filings (Texas Railroad Commission, Oklahoma Corporation Commission, etc.) are public record; (3) Division Orders establish decimal interest ownership; (4) Schedule K-1 (Form 1065) for partnership tax reporting including Box 1 ordinary income, Box 13 deductions, and depletion calculations under IRC §613/613A.
Real-World Example
Example: An investor receives their March 2026 report: Gross production 2,450 barrels, net after 20% royalty = 1,960 barrels, sold at $74.50/barrel = $146,020 gross revenue. After $18,500 LOE and 4.6% severance tax, net revenue = $120,794. The investor's 2.5% working interest = $3,020 net revenue check. The report breaks down every cost so the investor understands exactly where money goes.
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Investment Disclaimer
Past performance is not indicative of future results. All investments involve risk, including the potential loss of principal. The projections, examples, and estimates presented are for illustrative purposes only and are not guarantees of future performance.
Oil and gas investments are speculative and involve significant risks including but not limited to: commodity price volatility, drilling and completion risk, regulatory changes, and geological uncertainty. Returns may vary substantially from projections based on actual well performance, oil prices, and operating costs.
This content is for educational purposes only and does not constitute investment advice. Consult with a qualified financial advisor, CPA, and attorney before making any investment decisions. Kingdom Exploration offerings are available only to accredited investors as defined by SEC regulations.
