Winter has arrived and for anyone thinking of a vacation, it probably includes sun, sand, and palm trees. Just like winter, oil and gas partnerships convey thoughts of three to many of us; IDCs, Depletion, and Depreciation.
If you have never evaluated an Oil & Gas offering, you are probably wondering “what?”
Don’t fret, The DI Wire and Ledger Petroleum, LLC have teamed up to provide you a convenient list of definitions for terms like these and more in the Glossary section of DI University.
So what is an IDC?
Simply put, it’s an acronym for Intangible Drilling Costs which are all of the costs to drill a well other than the cost of the equipment or lease.
Why ask about IDCs when considering an oil and gas partnership? Because there could be tax benefits available to investors depending upon the partnership agreement and the activities of the fund.
Advisors, want to learn more about IDCs? Contact your regional Oil & Gas Wholesaler; they are your best bet to explain how intangible drilling costs may benefit your clients.