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Matt Badiali: Freedom Check Revenue Is Only Subject To Capital Gains Tax

Freedom Checks is a term referred to the payments that are paid to investors in Master Limited Partnerships on a monthly or quarterly basis that was made popular by investment advice expert Matt Badiali. Matt Badiali is a member of Banyan Hill Publishing Company who is best known for his popular investment advice column Real Wealth Strategist.

Matt Badiali began his career in academia and was working as a professor of geology at the University of North Carolina whenever he was contacted by a member of the financial industry who is in the process of constructing a team to help create investment advice the natural resource in commodities markets. This financial expert offered Matt Badiali a position that would involve him traveling the world reading firsthand members of the natural resource commodity industries. Matt Badiali took this opportunity and soon was traveling the world meeting with the leaders of the various corporations in the natural resource industries. It was during a project involving research in the oil and gas industries that Matt Badiali was informed of the existence of Master Limited Partnerships. Read this article at Affiliate Dork.

Master Limited partnerships are a tax classification for corporations in the oil and natural gas industries. In the 1980s Congress enacted Statute 26-F in an effort to drive America’s quest for energy independence forward. Statute 26-F specifies that if a corporation generates 90% of its income through the processing, distribution, production, and transportation of oil and natural gas domestically within the borders of the United States of America and if the corporation pays out a portion of these earnings to its investors on either a monthly or quarterly basis in the corporation qualified to operate tax-free.

It is these monthly and quarterly payments that Matt Badiali is referring to whenever he speaks of Freedom Checks. Any income that is generated as a part of these Freedom Checks is treated as a return of capital and not as personal income. As a result, the income that is generated from Freedom Checks is subject only to capital gains rate of tax which is significantly lower than personal income tax rate. Additionally, if an investor were to sell his shares in a Master Limited Partnership the proceeds generated from the sale would also only be subject to the lower capital gains rate of tax. Investment in a Master Limited Partnership’s represents a good way for the investor who desires to increase their revenue streams without increasing their personal income tax liability. Read more: https://moneymorning.com/2018/03/08/the-truth-about-freedom-checks-not-a-scam/

 

Talos Energy Partners with Two Others in Zama-1 Project

The decision by Mexico to nationalize its oil industry in 1938 irked many countries including the United States. However, Mexico failed to achieve the economic benefits it thought it would gain by nationalizing the sector. Apparently, the Mexico’s oil industry is weak, and she recently voted to invite foreign investors to rescue her ailing oil sector. The oil sector is expected to accommodate other players than the state-owned Petroleos Mexicanos known to many as Pemex.

Many foreign companies were keen to join Mexico’s oil industry. Notable foreign companies such as Talos Energy and Premier Oil won rights to explore oil in Mexico’s waters. The two companies and Mexico’s Sierra Oil & Gas joined hands to mobilize resources and expertise that will enable them to drill an offshore oil well. The oil well will be the first non-Pemex well in an extended period of time.

The well will be located in the Sureste Basin off the state of Tabasco. It will be referred to as Zama-1 well. Recently, Premier Oil issued a statement about its involvement with the project. The project will cost Premier Oil a whopping $16 million. However, Premier Oil notes that Zama is a promising well, and it estimates that it holds over 500 million barrels of crude oil. Premier Oil owns 25% stake in the project.

The news about the Zama excited pundits in the business world. Elaine Reynolds of Edison Investment Research recently addressed clients about Zama. According to Reynolds, Zama will be under the scrutiny of players in the Oil industry, but he adds that the well is likely to be a success as evidenced by the structure of the Sureste Basin. Charlie Sharp of Canaccord Genuity noted that Zama well was the most interesting well to be dug in 2017.

Talos, a partner in the venture, owns 35% stake of Zama-1, and it also operates the well. Talos Energy was established in 2012; it is a privately held company based in Houston, Texas. Talos Energy is currently under the stewardship of Tim Duncan.

Talos prides itself in providing the best work environment for its employees. Mr. Duncan states that the company may not be the best paying in the sector, but it enables its employees to become part of the enterprise. Recently one of Talos employee, Ash Shepherd, was Thirty Under 40 honoree.

Facebook: https://www.facebook.com/talos.energy/