This presentation is prepared by EPUS Global Energy, LLC (the “Company”) and is solely for the purpose of corporate communication and general reference only. The information contained herein, including forecasts, reflects the views and opinions of management, does not purport to be definitive or contain all of the information a prospective investor may require. All information contained herein has been furnished by the management of the Company.
We are all familiar with the stock market, the bond market, the Real Estate market, the gold market… and the oil and gas market.
It wasn’t too long ago that oil prices reached $140 dollars a barrel and the oil industry was booming. That was followed with a crash down to $26 dollars then back up again, followed by another crash. Now the price of oil is rising again.
This boom and bust cycle is a real challenge for the industry, and coupled with the ever present “drilling risk” can send a profitable deal into a bust. But let’s suppose you could be in the oil and gas business, never drill for oil and limiting your exposure to the boom and bust price cycle, would that be interesting to you?
You see to be in the oil and gas business, you don’t necessarily need to be in the “oil” business. You also need to understand that oil and water really do mix, just probably not the way you are thinking.
We are all familiar with the idea of a barrel of oil, but did you know that every barrel of oil comes with several barrels of water. That water needs to be separated from the oil and put back into the ground for the oil to be sold.
Most oil companies rely on contractors to provide disposal wells where that water will be returned to the earth, they rely on contractors to provide transportation for the water from the oil well to the water disposal site and they rely on contractors to pick up that water no matter what price they receive for the oil. And the contractor gets paid for every barrel of water they handle. In short, without water disposal, no oil will be sold.
Now imagine a place like the STACK/SCOOP play in Oklahoma, oil prices are rising so drilling rigs are going back to work. With every drilling adventure comes the need for water and with every successful well, water will be produced carrying the oil to the surface. Some of these companies will be successful and make a lot of money, some will become over leveraged and lose everything when the price ultimately comes down.
However, the company that provides the water, picks up the water, and puts it back into the earth will be employed as long as the well is productive…no matter what the price of oil does in the market.
At EPUS Global Energy we invest in water transportation and disposal, our unit holders make money on the water that is being produced, not the oil and gas, thereby eliminating risks associated with drilling oil wells.
So imagine investing in the oil and gas industry, avoiding the risk of drilling oil wells, earning a 9% plus annualized distribution rate, get a 3-5 year exit strategy, and it is backed by real assets. (do this line again promising a 10%)
If that is something that looks interesting to you, let’s chat.
Give us a call at 682-316-8777, visit our website at www.EPUSEnergy.com
Or stop by our office at
500 Main Street, Suite 820 in Fort Worth Texas.".