Project updates, market intelligence, and strategic perspectives from LegacyCrest Capital.
New drilling vs. producing wells: how the tax picture changes, and where Legacy Gus-EFG II fits.
Read Article →Brent crude settled at $107.63 as the Iran war squeezes global supply, and the Fed raised rates for the first time since 2023. Here's what matters for investors weighing energy before year-end.
Read Article →All four horizontal wells are online and producing at 1,027 BOPD oil and 17,479 MCFD gas. Wells operating at 42/64 choke — production volumes expected to increase as choke opens toward full capacity.
Read Article →The Permian continues to lead U.S. oil production, with the Delaware Basin emerging as its most prolific sub-region. AI-driven energy demand adds further tailwinds.
Read Article →Rising production drives unprecedented demand for disposal capacity, with the oilfield water management sector projected to exceed $22 billion by 2028.
Read Article →Oil is back above $100 a barrel. For investors weighing an energy position before year-end, the backdrop has changed fast.
On September 10, Brent crude settled at $107.63, up 6.34% on the day — its highest close since May 19. U.S. crude settled at $102.48, its biggest one-day jump in two months. Both benchmarks are up more than 75% since the start of the year.
Traders are bracing for a longer supply shock from the Iran war, as fighting in the Strait of Hormuz and Red Sea has intensified. The national average diesel price hit a record $5.98 a gallon, according to AAA.
The energy shock is now driving policy. In its September 16 statement, the Federal Reserve said inflation remains elevated.
Forecasts are split. NBC News reported that commodities experts see Brent potentially reaching $120, or as high as $150, if the standoff continues. Goldman Sachs sees higher odds of Brent topping $120, but its base case is a gradual recovery in Persian Gulf exports.
The takeaway: nobody knows where prices land. Investors should plan for both outcomes.
Producing vs. drilling matters more now. A well that's already online sells into today's market. A new drilling program can take months before first production — and prices may look very different by then.
Location matters. Oil from the Permian and Delaware Basins moves through U.S. pipelines and refineries, not through the Strait of Hormuz or the Red Sea.
Rates are rising too. On September 16, the Federal Reserve raised its benchmark rate by a quarter point to a range of 3.75%–4%, its first hike since 2023. Officials signaled at least one more increase this year. Fed Chair Kevin Warsh acknowledged the Fed can't do much about the main source of inflation: higher energy prices. The 10-year Treasury yield had already climbed to 4.97% on September 10, its highest since October 2023. Higher borrowing costs affect every asset class, including energy.
Year-end tax planning. Fall is when many investors review their tax picture. Tax treatment varies widely by program — some oil and gas structures carry deductions, others don't. Ask your tax advisor what applies before you commit. See how drilling and producing wells compare →
Volatility cuts both ways. Prices driven by headlines can drop just as fast as they rose. Know what you own, who operates it, and whether it's already producing.
For investors who want exposure to today's market without waiting months for wells to come online, already-producing assets are worth a look. The drilling risk is behind them, and production is already flowing.
LegacyCrest Capital offers accredited investors direct participation in oil and gas opportunities across the Permian and Delaware Basins. Our current offering, Legacy Gus-EFG II, LP, is in wells that are already online and producing.
View the Legacy Gus-EFG II, LP Offering →
Sources: CNN Business, NBC News, CNBC, AAA. Market data as of the dates noted. Forecasts cited are those of third parties and are not LegacyCrest Capital projections. This article is for informational purposes only and is not an offer to sell or a solicitation of an offer to buy any security. Offers are made only to verified accredited investors through the offering's private placement memorandum.
All four horizontal wells in the Legacy Gus-EFG LP project are now online and producing, marking a significant milestone for the partnership and its investors.
The wells, located in Reeves County in the heart of the Delaware Basin, are currently producing 1,027 barrels per day of oil and 17,479 thousand cubic feet per day of natural gas. Wells are operating at a 42/64 inch choke — approximately 66% of full capacity — with production volumes expected to increase materially as the operator continues opening the choke toward full capacity.
The Legacy Gus-EFG LP program targeted the prolific Wolfcamp C formation — one of the most proven and productive intervals in the Permian Basin. All four wells were drilled to their target depths, completed on schedule, and have been brought online with strong initial production numbers that are tracking to underwriting expectations.
With drilling and completion risk now fully eliminated, the Legacy Gus-EFG LP has transitioned from a Proved Undeveloped Reserve (PUD) to a fully producing asset — generating active oil and gas revenue with first distributions to investors pending.
The successful transition to production represents the most significant de-risking event in the life of an oil and gas project. Geological risk, drilling risk, and completion risk have all been removed. What remains is a producing asset with known well performance, active revenue, and a long production tail.
Investors in the Legacy Gus-EFG LP benefit from direct participation in these wells, meaning they participate proportionally in production revenue. Additionally, the tax benefits associated with oil and gas investments — including intangible drilling cost deductions, 100% bonus depreciation, and depletion allowances — may be available depending on individual investor circumstances and the timing of their capital contributions.
The Permian Basin continues to reinforce its position as the undisputed leader in U.S. oil production, reaching new record output levels at the start of 2026.
Spanning West Texas and southeastern New Mexico, the basin now accounts for approximately 45% of total U.S. crude oil production — a share that continues to grow year over year.
This sustained growth is driven by a combination of factors: continued advancements in horizontal drilling and completion techniques, improved water management infrastructure, and the basin's unrivaled geological endowment. The Permian's stacked pay zones — multiple productive formations sitting on top of one another — give operators the ability to extract hydrocarbons from multiple intervals on a single well pad, dramatically improving capital efficiency.
Within the broader Permian, the Delaware Basin has emerged as the most prolific sub-basin, attracting significant capital from both major operators and independent producers. The Delaware's deeper formations, higher initial production rates, and substantial gas-to-oil ratios make it particularly attractive in the current commodity price environment, where both oil and natural gas contribute meaningfully to well economics.
LegacyCrest Capital's focus on the Delaware Basin positions our investors in the most economically attractive region of America's most productive oil field — a strategic advantage that compounds over the life of every well we develop.
Beyond traditional energy demand, the explosive growth of artificial intelligence and data center infrastructure is creating an unprecedented need for reliable baseload power. Natural gas is emerging as the fuel of choice for data center developers, who require consistent, high-capacity electricity that intermittent renewable sources alone cannot provide.
This structural demand shift makes gas-producing assets in the Permian Basin increasingly valuable — and further strengthens the economic thesis behind multi-lateral wells like those in the Legacy Gus-EFG LP project, which produce both oil and significant volumes of natural gas.
For investors considering energy exposure, the Permian Basin's combination of proven geology, improving technology, and expanding demand drivers presents a compelling opportunity. LegacyCrest Capital continues to identify and structure high-quality investment opportunities that allow accredited investors to participate directly in this growth.
As Permian Basin production continues to set records, so too does the volume of produced water that must be managed — creating compelling investment opportunities in midstream infrastructure.
Every barrel of oil extracted from the basin brings with it multiple barrels of salt water — a natural byproduct of hydrocarbon production that must be safely and efficiently disposed of. The oilfield water management sector is projected to exceed $22 billion by 2028, driven primarily by the Permian's relentless production growth.
Salt water disposal (SWD) wells are the backbone of this critical infrastructure. These facilities collect produced water from surrounding oil and gas operations and inject it into deep, permitted disposal zones — a process that is essential to the continued operation of every well in the basin.
SWD facilities operate on a fee-based model — operators pay disposal fees per barrel of water processed, creating a predictable, recurring revenue stream that is less sensitive to oil and gas commodity price fluctuations. As long as wells in the surrounding area are producing, the disposal facility generates revenue.
Additionally, SWD operations often recover skim oil from the produced water stream — oil that separates naturally during the disposal process. This recovered oil provides an additional revenue source on top of disposal fees, further enhancing the economic profile of well-run facilities.
LegacyCrest Capital's founder, Jason Pickard, recognized the opportunity in midstream water infrastructure early. In 2017, he formed Alpha SWD to begin acquiring and developing salt water disposal assets — a strategic expansion that gives LegacyCrest investors access to both upstream production and midstream infrastructure returns.
Our SWD investments are structured as LLCs, giving investors direct economic participation in facility revenue. Key advantages of the SWD model include fee-based revenue that is less dependent on commodity prices, long-term contracts with area operators, additional income from recovered skim oil, growing demand as Permian production continues to increase, and essential infrastructure that is required regardless of the price of oil.
For investors seeking energy exposure with lower commodity price risk, salt water disposal facilities represent a compelling complement to traditional drilling programs. LegacyCrest Capital continues to evaluate and acquire SWD opportunities that meet our investment criteria, and we invite accredited investors to learn more about how these assets can fit within a diversified energy portfolio.
Schedule a call with our team to discuss current investment opportunities and determine if they're right for your portfolio.