PE Style Oil and Gas Returns, Now for the Individual Investor
TEP Fund 2026 LP is now open! A non-operated oil and gas fund built for accredited investors, it focuses on direct working interests in development wells across U.S. basins.
Highlights
Targeting a 2x return over 5 years, with distributions starting in 2028 and a planned asset sale and full exit between 2030 and 2033
Targeting 75% IDC deductions in year 1, with deductions extending across multiple years through recycled cash flows
Minimum investment of $50,000 - access that was previously reserved for institutional capital
How the Fund Works.
TEP Fund 2026 LP acquires direct working interests in development wells alongside top-tier U.S. operators, diversified across basins and product mix. Cash flows generated during the investment period are recycled back into additional wells rather than distributed immediately.
This serves three purposes: it increases overall returns, extends tax benefits across multiple years, and cost averages into the price of oil and gas over time. When the portfolio has matured, assets are sold and capital is returned to investors.
This is not a buy-and-hold structure. There is a plan, a timeline, and a defined exit.
*These terms are subject to the fund's offering documents. This is not an offer to sell interests or a solicitation of an offer to buy interests in the fund. An offer is made only by the delivery of an offering memorandum and subscription documents. There can be no assurance that the preferred return can be met.
The Terms.
The Tax Advantage.
Oil and gas investing carries a structural tax benefit that most asset classes simply do not offer. Intangible Drilling Costs, the expenses associated with drilling and completing a well, are 100% deductible in the year they are incurred. In a typical well, IDCs represent 80% to 90% of total capital expenditure. TEP Fund 2026 LP targets 75% IDCs in year one, with deductions extending across multiple years through the recycled cash flow structure.
Investors also benefit from depletion, an annual deduction of 15% of revenue that functions similarly to depreciation on a physical asset.
The fund allows investors to participate as either a GP, with the ability to offset active income, or as an LP, offsetting passive income. Mechanics are available to convert from GP to LP status.
K-1s are delivered by March 31st each year.
These tax benefits are a structural feature of the fund and while they matter, they are not the reason to invest. The real opportunity is the total returns.
You should consult with your tax advisor prior to making any investment decisions based on tax considerations.
Invest With Those You Trust.
Current incentives are available for qualifying investors. Contact us for current incentive details and eligibility requirements.
*Incentives subject to offering document terms.
**Maximum incentive of 10% available to qualifying investors due to previous incentives.
Ready to Take the Next Step?
TEP Fund 2026 LP is open now to accredited investors. Offering documents, due diligence reports, and the investor portal are available upon request. If you would like to speak with Jake or Brayden directly, reach out through the form here.
This page contains forward-looking statements. Actual results may differ materially from projections. Investing in oil and gas funds is highly speculative. Investors may lose all or part of their investment. Securities offered through Crescent Securities Group, Inc., member FINRA/SIPC. Please review all offering documents carefully before investing.