2018 Year in ReviewFebruary 14, 2019
2018 was our best year yet from the amount raised to fund natural gas and crude investing projects ($2,129,000) to the production distributions ($130,000 and counting as many wells are still in progress and producing). Another highlight: the Theall Project began producing at the end of 2018, and projections say it could be our best one to date, with an estimated 2.5x multiple on invested capital (MOIC).
By the Numbers
Capital Raised for Projects IncreasedFrom a deals perspective, 2018 became our largest fundraising year and saw a growth of 80% from 2017. We attribute this success to:
- Improvements in our due diligence and project generation processes, allowing us to post more oil and gas investments quickly and efficiently
- Partnering with operators who offer better opportunities for our investors
- Optimization of our education and communication with investors
Production Revenue Distribution IncreasedLast year was a huge year for many things regarding our process of distributing production revenue. Previously, we sent revenue by check or direct deposited (or ACH), but in 2018 we converted 100% of payments by directly linked bank accounts. This not only simplified distributions but eliminated challenges associated with mailing checks (address changes, people being out of town, etc). We distributed nearly three times the amount of production revenue in 2018 versus 2017. It's a testament to the high quality of operators who are using our platform. This shows revenue distributed to our funds from oil and gas production. Since switching our focus to high-end conventional drilling prospects in 2017, we've learned much more about the amount of time it takes to go from funding a project on the platform to drilling the well, putting in production facilities (and pipeline), and receiving revenue distribution checks from the gas purchaser and oil haulers. Even the most organized projects take a minimum of six months to see production, and our current average is nearly 12 months from fundraise to distributions.
More Projects Produced OilWe fundraised five projects in 2017. The Theall Project began producing in Q3 2018, and we just received our first oil revenue checks (distributed to investors last week). This crude investing project is forecasted to be our best one to date, with an estimated 2.5X ROI. But it's taken a lot of patience and many months of drilling and construction to get there. This shows the current development status of our 21 funds from the last four years. "Dry hole" refers to projects that are finished producing or plugged (P&A). "In process" refers to projects in development. For instance, five of the eight projects funded in 2018 are either waiting to be drilled or waiting for facilities/pipeline installation. These projects are expected to begin soon, but the pace of development can be many months. "Producing" refers to projects that are producing and yield monthly distribution revenue for investors.
A Transparent Platform for Natural Gas and Crude InvestingOur goal with disclosing these figures is to help you understand how our oil and gas investments work and why we're so excited about 2019. As we raise larger amounts of money, drill more wells and distribute more revenue to investors, EnergyFunders is committed to being the most transparent and easy-to-use platform for natural gas and crude investing.
What's Next for EnergyFunders?EnergyFunders raised funds for eight new projects in 2018. Our goal in 2019 is to have at least one quality project per month. We are committed to maintaining highly vetted projects from operators and will never add projects just to have oil and gas investments on the platform. Our company mantra is: "Investor First." We only win if our investors win, so rest assured that we will continue to source exclusive deals.