An oil and gas industry joint venture involves an oft-repeated sequence of events. For Gulf Coast Western, the process begins with an initial site evaluation. When the company’s expert site analysts identify a promising location, the production team gears up for further exploration and possible development work.
Concurrently, Gulf Coast Western investor relations associates inform the joint venture’s investment partners of relevant developments. The associates continue to keep investors informed throughout the duration of the project. A well-chosen site can generate extended income for Gulf Coast Western and its investment partners alike.
At Gulf Coast Western, CEO Matthew Fleeger places a high value on investor communication. This practice commands respect from the company’s partners and other industry professionals. Over time, mutually beneficial relationships often lead to subsequent investment opportunities. A full 70% of Gulf Coast Western’s partners have been involved in multiple joint ventures.
Onboarding Joint Ventures Partners
Gulf Coast Western serves as the managing venturer for its numerous oil and gas partnership ventures. Bringing investors into the company’s development process involves two important steps. By completing them in sequence, the company can verify that each investor is a good fit. In addition, Gulf Coast Western can ensure that each partner understands the workings of the oil and gas industry.
Entering into an oil and gas partnership does involve some risk. Therefore, Gulf Coast Western limits its joint venture opportunities to “accredited investors.” Each accredited investor must meet one or more of the following criteria:
- Must be an individual who has a net worth (not including their primary residence’s value) and personal property, over total liabilities, individually or in addition to that of their spouse at the present time, of more than $1 million.
- Must be an individual who has assets over $200,000 in each of the two most recent years. Alternatively, the person has had joint income (with their spouse) of at least $300,000 in each of the two most recent years. In either case, the individual reasonably expects to achieve the same income level during the current year.
- Must be a legal entity in which every equity owner is an accredited investor.
- Must be an individual or legal entity that may otherwise qualify as an accredited investor. The U.S. Securities and Exchange Commission (SEC) defines this term in Rule 501(a) of its Regulation D.
Partner Due Diligence
Each potential Gulf Coast Western joint venture partner receives a complete information package for each partnership opportunity. This enables each partner to conduct thorough due diligence before making an investment decision.
Gulf Coast Western also provides investors with oil and gas scam information from the SEC’s investor publication. Although Gulf Coast Western does not offer or sell securities, it believes that the SEC recommendations provide excellent guidelines for investors considering any oil or gas financial investment.
Gulf Coast Western Partnership Benefits
A Gulf Coast Western joint venture partnership delivers multiple benefits. The Company’s joint venture partners become valued members of their project’s team. Besides becoming fully informed about the opportunity, investors understand that they are participating alongside a well-capitalized business with the resources to execute the project to completion.
Solid, Stable Joint Venture Partnerships
For any business opportunity, a potential investor wants to ensure that they are dealing with a reputable company. Stated another way, the investor wants to know that the firm possesses the infrastructure and resources to follow through on its promises. Gulf Coast Western meets both of these criteria.
Gulf Coast Western’s Evolution
Established in 1970, Gulf Coast Western originally began as a small-scale venture on the United States’ Gulf Coast. Today, this Dallas-based firm has expanded its operations within this highly productive region, with thousands of acres available for upcoming development.
Gulf Coast Western facilities are currently found in Texas, Louisiana, Alabama, and Mississippi. Other installations are located in Oklahoma, Kansas, and Colorado. The company continues to analyze other promising opportunities throughout the Gulf Coast and southwestern United States.
During Gulf Coast Western’s extended oil and gas industry history, the company has periodically encountered challenging economic conditions. When necessary, Gulf Coast Western has streamlined its operations and improved efficiencies. These strategies enabled Gulf Coast Western to thrive when many competitors were forced to drastically reduce operations or shut down entirely.
CEO Matthew Fleeger’s Proven Leadership
Gulf Coast Western CEO, president, and director Matthew Fleeger has been a key player in the company’s growth and expansion. He began his oil and gas industry career in the mid-1980s, shortly after graduating from Southern Methodist University with a business administration degree.
During eight informative years at Gulf Coast Western, which was founded by his father, Matthew Fleeger gained expertise in management, financial operations, sales, and marketing functions. His knowledge of corporate structures, mergers and acquisitions, and joint ventures proved to be invaluable in his subsequent endeavors.
Next, Matthew Fleeger took several years’ hiatus from the oil and gas industry, during which time he founded a medical-waste management company. After selling the business to Stericycle, Fleeger resumed his Gulf Coast Western career.
In 2009, Matthew Fleeger stepped into the Gulf Coast Western CEO office upon his father’s retirement. This dynamic new chief executive officer immediately implemented plans for the company’s strategic growth. Today, Matthew Fleeger continues to expand Gulf Coast Western’s operations via a combination of acquisitions and partnerships.
Focus on Partner Education and Satisfaction
Maintaining good investor communications is essential for building mutually beneficial business relationships. In the oil and gas industry, Gulf Coast Western is known for its consistent focus on partner education. In turn, well-informed investors are more likely to have a satisfying investment experience.
Gulf Coast Western CEO Matthew Fleeger knows that well-informed investors are well positioned to make smart partnership decisions. To that end, he equips the company’s investor-facing associates with the knowledge and tools to thoroughly explain joint venture opportunities to prospective partners.
Fleeger insists on total transparency, ensuring that investors are provided with the pros and cons of every venture. He also insists on full disclosure in the areas of risk management, financial decision parameters, and engineering operations.
Further, CEO Fleeger often personally assists partners in making investment decisions. He ensures that investors are fully cognizant of the risks and potential rewards involved in each oil and gas industry opportunity. Should an investor come aboard, a Gulf Coast Western associate will provide them with regular progress updates through the duration of the project.
Fleeger clearly and succinctly explains why it’s important to equip Gulf Coast Western’s partners with relevant industry and project knowledge. “Education and awareness are always an investor’s first line of defense against potential fraud,” he emphasizes. “We work hard to make sure our partners understand the risks and benefits of investing in oil and gas exploration.”
Gulf Coast Western has gained an industry reputation for focusing on its partners’ needs first. The company’s commitment to transparency, and its cultivation of long-term partner collaborations, set it apart from its competitors.
This positive, constructive approach has led to Gulf Coast Western’s excellent Better Business Bureau standing. The company’s A+ rating, and its five-star customer review results, demonstrate that the firm actively responds to its partners’ feedback. With this information in hand, Gulf Coast Western often makes changes that will help to deliver a better partnership experience.
These positive interactions help to cultivate mutually beneficial long-term business relationships. Many partners have invested in multiple joint ventures. In addition, these satisfied investors often recommend Gulf Coast Western’s investment opportunities to their colleagues, friends, and family members.
Significant Tax Advantages
Qualified joint venture partnership investors can benefit from several notable tax advantages. To illustrate, current law allows most partners to write off 100% of drilling expenses and production income against the investor’s ordinary income. Other currently allowable tax benefits include:
- Organizational Costs
- Prospect Costs
- Syndication Costs
- Depletion Allowance
- Intangible Drilling Costs
- Intangible Completion Costs
- Lease Operating Expenses
- Lease and Well Equipment Depreciation
- Net Revenue from a Producing Well
An Important Caveat About Tax Advantages
Note that current tax laws can change at any time. In addition, specific tax rules may impact a partner’s ability to take tax deductions from a Gulf Coast Western joint venture partnership. Before making an investment decision, each potential partner should obtain tax advice from a qualified tax adviser with prior oil and gas taxation and investment experience.
Making an Informed Partnership Decision
Potential Gulf Coast Western joint venture partners should thoroughly familiarize themselves with an endeavor’s risks and potential benefits. If they decide to proceed, they will have ongoing support from an oil and gas industry leader with a proven track record.