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For accredited investors exploring oil and gas, the jargon can be intimidating. Drilling programs, depletion allowances, working interests—where do you begin?
Fortunately, you don’t need to be an engineer or operator to benefit from energy investing. In fact, one of the most effective—and investor-friendly—structures is something called a Non-Operated Working Interest, or NOWI.
In this post, we’ll break down exactly what a NOWI is, how it works, and why many sophisticated investors are adding them to their portfolios.
A Non-Operated Working Interest is a direct ownership stake in an oil and gas well or lease, where the investor shares in the costs and revenue—but doesn’t participate in daily operations.
Think of it like this:
You’re a partial owner of an apartment building. You share in the rent income and some maintenance costs—but someone else handles the property management, leasing, repairs, and tenant issues.
In the energy world, the “property manager” is the operator—a licensed and experienced company responsible for drilling, completing, and managing the well. As a non-operator, you’re a capital partner. You get a proportionate share of the profits from oil and gas production, but the operator takes care of the technical and regulatory side.
Oil and gas projects are capital intensive. Even large operators often bring in financial partners to help fund drilling and completion costs. This allows them to spread risk across multiple investors and focus their capital on additional projects.
This model opens the door for accredited investors—like you—to participate directly in domestic energy production, rather than through public energy stocks or ETFs.
Here’s a quick breakdown of what makes a non-operated working interest unique:
With a NOWI, you’re positioned to earn cash flow from oil and gas sales, typically on a monthly or quarterly basis, without having to manage the day-to-day operations.
The operator handles:
You simply participate in the economics—and the upside.
One of the most attractive aspects of energy investing through NOWIs is the tax efficiency.
Here are a few of the tax benefits:
Compared to traditional equities or even real estate, few asset classes offer this blend of immediate and long-term tax advantages.
At Basin, we believe execution is everything. That’s why we only partner with top-tier operators—companies with proven technical teams, capital discipline, and experience in key basins.
We handle:
As the investor, you benefit from our network, our experience, and our selective approach—all without needing to navigate the complexities of the industry on your own.
Non-operated working interests are common in the major U.S. basins:
At Basin, we maintain a basin-agnostic strategy, which means we prioritize project quality over geography. If the geology is strong, the operator is proven, and the economics make sense—we pursue it.
Let’s say Basin offers you a 5% working interest in a new well in the Permian Basin.
Here’s a simplified look at what might happen:
And unlike stock dividends, this income may be partially tax-shielded thanks to the depletion allowance.
Yes. You’re not involved in decision-making or operations. Basin and the operator handle everything. You receive documentation, reports, and distributions based on your interest.
It depends on the offering structure. Most NOWIs are offered through Regulation D exemptions and are limited to accredited investors. Basin structures each deal or fund to ensure compliance, reporting, and clarity.
Like all investments, NOWIs carry risk. These include:
Basin mitigates these risks by:
Most projects distribute cash flow monthly or quarterly once production begins. Timing depends on operator reporting and revenue cycles.
A Non-Operated Working Interest may be a great fit if you:
Energy investing doesn’t have to be overwhelming—and it doesn’t require operating a rig. Through Non-Operated Working Interests, accredited investors can tap into one of the most powerful asset classes in the market: U.S. oil and gas production.
At Basin Ventures, we specialize in sourcing, vetting, and managing these opportunities with integrity, vision, and precision—so you can invest with clarity and confidence.
For accredited investors exploring oil and gas, the jargon can be intimidating. Drilling programs, depletion allowances, working interests—where do you begin?
Fortunately, you don’t need to be an engineer or operator to benefit from energy investing. In fact, one of the most effective—and investor-friendly—structures is something called a Non-Operated Working Interest, or NOWI.
In this post, we’ll break down exactly what a NOWI is, how it works, and why many sophisticated investors are adding them to their portfolios.
A Non-Operated Working Interest is a direct ownership stake in an oil and gas well or lease, where the investor shares in the costs and revenue—but doesn’t participate in daily operations.
Think of it like this:
You’re a partial owner of an apartment building. You share in the rent income and some maintenance costs—but someone else handles the property management, leasing, repairs, and tenant issues.
In the energy world, the “property manager” is the operator—a licensed and experienced company responsible for drilling, completing, and managing the well. As a non-operator, you’re a capital partner. You get a proportionate share of the profits from oil and gas production, but the operator takes care of the technical and regulatory side.
Oil and gas projects are capital intensive. Even large operators often bring in financial partners to help fund drilling and completion costs. This allows them to spread risk across multiple investors and focus their capital on additional projects.
This model opens the door for accredited investors—like you—to participate directly in domestic energy production, rather than through public energy stocks or ETFs.
Here’s a quick breakdown of what makes a non-operated working interest unique:
With a NOWI, you’re positioned to earn cash flow from oil and gas sales, typically on a monthly or quarterly basis, without having to manage the day-to-day operations.
The operator handles:
You simply participate in the economics—and the upside.
One of the most attractive aspects of energy investing through NOWIs is the tax efficiency.
Here are a few of the tax benefits:
Compared to traditional equities or even real estate, few asset classes offer this blend of immediate and long-term tax advantages.
At Basin, we believe execution is everything. That’s why we only partner with top-tier operators—companies with proven technical teams, capital discipline, and experience in key basins.
We handle:
As the investor, you benefit from our network, our experience, and our selective approach—all without needing to navigate the complexities of the industry on your own.
Non-operated working interests are common in the major U.S. basins:
At Basin, we maintain a basin-agnostic strategy, which means we prioritize project quality over geography. If the geology is strong, the operator is proven, and the economics make sense—we pursue it.
Let’s say Basin offers you a 5% working interest in a new well in the Permian Basin.
Here’s a simplified look at what might happen:
And unlike stock dividends, this income may be partially tax-shielded thanks to the depletion allowance.
Yes. You’re not involved in decision-making or operations. Basin and the operator handle everything. You receive documentation, reports, and distributions based on your interest.
It depends on the offering structure. Most NOWIs are offered through Regulation D exemptions and are limited to accredited investors. Basin structures each deal or fund to ensure compliance, reporting, and clarity.
Like all investments, NOWIs carry risk. These include:
Basin mitigates these risks by:
Most projects distribute cash flow monthly or quarterly once production begins. Timing depends on operator reporting and revenue cycles.
A Non-Operated Working Interest may be a great fit if you:
Energy investing doesn’t have to be overwhelming—and it doesn’t require operating a rig. Through Non-Operated Working Interests, accredited investors can tap into one of the most powerful asset classes in the market: U.S. oil and gas production.
At Basin Ventures, we specialize in sourcing, vetting, and managing these opportunities with integrity, vision, and precision—so you can invest with clarity and confidence.
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