The Energy Strategist
U.S. oil and gas trusts are BACK and paying us huge yields up to 15%. Not since T. Boone Pickens started the oil trusts in the 1970s have we seen such a resurgence of quality trusts offering juicy yields up to 15%. Below, I offer up my two favorite oil and gas trusts right now—one is mostly liquids-levered and the second is mostly oil.Both pay you yields that surpass the legendary, millionaire-making Prudhoe Bay Royalty Trust. Below, you’ll find the best bets from the all-new crop of oil and gas trusts.

U.S. Oil and Gas Trusts Are Back: What’s the Next Millionaire-
Making Prudhoe Bay?

My first pick hides 13,000 feet below Western Oklahoma.

It’s yielding 13.0% today and set to pay out
even more tomorrow.

On the Osage Plains, the wind carries whispers of a supersized 13% dividend yield—a stunning income bonanza gushing from a bizarre geological formation.

Better yet: This U.S. royalty trust is so new, many brokers and websites still list its yield as zero—giving you a rare opportunity to scoop up high-yielding units before the investing public catches on.

In tiny Washita County, in Oklahoma’s remote far west, the wind still comes “sweeping down the plains”—but now it’s about to carry oversized 13% distribution checks into your mailbox.

Thanks to a strange geological formation—a massive underground “beach” 160 miles long and 30 miles wide—you’ll be able to count on whale-sized quarterly royalty payments pumping up your cash flow for years to come.

If you haven’t heard what’s happening in Oklahoma’s sandy “Subterranean Riviera,” keep on reading, please!

To carry the theme one more beat, this is an opportunity you’ll want to pounce on “Sooner” rather than later! Here’s the full story...


Meander down the blacktops crisscrossing Washita County like a checkerboard, and you’d never guess the tiny farm towns of Corn, Foss, Bessie and Burns Flat even exist.

For generations, the land surrounding these sleepy towns has been devoted to the twin staples of the Great Plains—farming and ranching.

But a new “bumper crop” is sprouting from the rich sedimentary plain almost as fast as sweet corn in a rainy June... horizontal drilling rigs.

For investors who act quickly, the “harvest” from these busy rigs will be monster quarterly distribution payments nearly twice the size of the legendary Prudhoe Bay royalty trust payouts.

You know about Prudhoe Bay Oil Trust,
don’t you?

If not, permit me to jog your memory...

Prudhoe Bay, on the famed Alaska North Slope, is the largest oil field in North America, producing in excess of 11 billion barrels of oil to date. Since this royalty trust began trading in 1989, it’s delivered (with reinvested distributions) an astounding 5,000% return to investors.

But let’s say you bought Prudhoe Bay in 2001, little over a decade ago. You’d still have been rewarded—thanks to the trust’s 8%-plus yield—to the tune of a 2,440% return.

That’s an annualized gain in a market that has gone nowhere over the past stagnant decade.

The high-yielding Prudhoe Bay royalty trust has generated enormous wealth for investors since it began trading.

Now, take a deep breath...

Consider this: The brand-new royalty trust I’m about to reveal is primed to pay investors distributions TWICE AS LARGE as Prudhoe Bay.

My name is Robert Rapier, Editor of The Energy Strategist.

I want to stress that my new top-secret investing recommendation is one of the most impressive royalty trust opportunities I’ve encountered in all the years I’ve been helping investors safely build income and wealth in the energy field.

If you’re not familiar with U.S. royalty trusts, they were invented by world-famous oilman T. Boone Pickens back in 1979.

These trusts allow investors to own a stake and collect royalties from some of the most productive oil and gas fields in the U.S.—Prudhoe Bay being Exhibit A.

Royalty trusts have unusual qualities different from other investments.

First and foremost, they aren’t subject to corporate taxes. Yes, you read that correctly. No corporate taxes.

The trusts pass earned income and profits directly to individual unit holders (that’s you) who pay tax on their share of the income. This eliminates the double taxation occurring when the IRS taxes dividends at both the corporate and individual level.

There’s even more upside to these trusts.

Royalty trusts almost always boast high-dividend yields—often much higher than typical corporate yields. I consider these unique investments (only 15 such trusts exist) a superb tool for those who desire to invest directly in top wells, oil fields and mines—such as my new top-secret pick in Washita County, Oklahoma.

It’s my favorite royalty trust today—paying gigantic yields due to a distinctive sandy formation created 350 million years ago when the middle of the North American continent lay submerged beneath a warm, tropical sea.

Think of it as cashing in Oklahoma’s last vestige
of “oceanfront”... underground beach property
that pays you handsomely!

The unusual geological formation in question is actually a gigantic sand bar created in the Mississippian Period of the Paleozoic Era when this ancient inland ocean—the Western Interior Seaway—flooded over a mountain range.

To make a multi-million-year story short, the eroding process washed granite materials from the land and deposited them onto the ocean floor. The deposits are made up of sands with low permeability, meaning they’re thick and nonporous.

As it happens, Washita County sits directly atop this massive ridge of sand—this “Subterranean Riviera.”

For eons the sands lay buried.

And then...

Jump to the twenty-first century.

The oilmen cometh. These new pioneers have been drilling in Washita County for several decades—and for most of that time it hasn’t been easy. Here’s why.

Drillers soon discovered that the nonporous sands in the formation tend to “put up a fight,” refusing to surrender oil and gas easily. So they called it, dismissively, a “tight-sands” play. Production was difficult and often disappointing.

But that was before...

The “big change”

Suddenly, Oklahoma’s tight-sands region is prime drilling territory again. Three historic developments have boosted the allure of the tight sands. You can probably guess two of them:

  1. Horizontal drilling
  2. Hydraulic fracturing (fracking)
  3. The skyrocketing value of natural gas liquids (NGLs) as an oil proxy by the petrochemical industry.

You’re aware that advances in horizontal drilling and fracking have unlocked the massive natural gas potential of shale and other unconventional energy plays in the U.S.

Across the region today, horizontal wells drill miles beneath the earth and then reach out thousands of feet laterally to suck up gas and oil trapped in the thick sands.

Fracking further enhances productivity, releasing gas and oil from their prison of tight sand.

The third development to benefit the tight sands has special importance...

The era of NGLs: almost replacing oil
in the petrochemical industry

I’m referring to the dramatic appreciation in value of a valuable but little-known family of fluids known as natural gas liquids (NGLs).

NGLs are liquids produced during the manufacturing, purification and stabilization of natural gas—principally ethane, propane, butane, isobutane and natural gasoline. Hard to believe, but true—natural gas is “cheap,” but when split into its liquid parts, it’s a high-value product.

NGLs receive minimal coverage in the media compared to oil and natural gas. But they’re vital energy commodities—and becoming more vital every year.

Indeed, petrochemical companies consider NGLs a cheaper substitute for oil and are buying the precious liquids hand over fist.

As it happens, the gas produced in Oklahoma’s tight sands is exceptionally rich in NGLs.

The key point to remember about NGLs is that they tend to trade at prices which track crude oil more closely than natural gas.

The higher the price of oil, the richer the profits made from NGLs.

I don’t have to tell you, despite daily oil price fluctuations, the age of easily-recovered, inexpensive oil is over and done.

Bottom line: NGLs are valuable petroleum substitutes found in vast abundance right here in the U.S.—just as the era of cheap foreign oil has ended. And just as the “Subterranean Riviera” of Oklahoma has become regarded as prime NGL-producing territory.

Seemingly overnight, production in the tight sands is booming. Actually, it’s only just begun. That’s because of...

Historic oil and gas profits

The global energy map is being redrawn. Energy companies are looking away from the Middle East and toward the West.

According to a major report just published in the Wall Street Journal...

“Driving the change is the boom in unconventionals—the tough kinds of hydrocarbons like shale gas and oil sands that were once considered too difficult and expensive to extract and are now being exploited on an unprecedented scale... The U.S. is at the forefront of the unconventionals revolution.”

My top-secret royalty trust pick is in the thick of this action... with a strong list of positives on its side.

Powerful, highly-experienced backing...

The trust is sponsored by the most active and experienced producer in the entire Oklahoma tight sands.

This outfit is the undisputed “boss” of the neighborhood: an energy powerhouse that’s drilled 133 of the 173 existing wells in the region.

The company’s area of operation in the sands is second to none, spanning 45,400 gross acres located in the heart of a broader oil- and gas-producing region known as the Anadarko Basin.

What impresses most is the sheer know-how of this strong partner in the trust. A true heavy-hitter in the business, they’ve amassed unrivaled proprietary data on well production history and understand how and where new wells should be drilled.

This is vital because, in addition to operational wells, the company plans to drill 118 new development wells in the area. These will be completed by 2015. Once completed, trust unit-holders will be entitled to receive 50% of the net proceeds from these wells.

Strong track record of producing the “right stuff”...

Investors are just now catching on to the profit-generating potential of “wet gas”—or “liquids rich gas”—which is natural gas loaded with highly profitable NGLs.

This bodes well for our investment since, you’ll recall, NGL prices tend to follow the price of crude oil, which is destined to remain high over the long term.

Given the field’s high liquids content and low production costs (thanks to the incredibly strong and efficient sponsoring company), this formation is one of the most economically attractive drilling targets I’ve seen in years.

Superb payout for investors—already 13.0%...

My high-yielding, top-secret recommendation looks to be one of the best of the new oil and gas trusts. Unlike regular stocks, the trust will pay out virtually all of the income it receives to investors as regularly quarterly distributions.

As I write, the current yield has already topped an eye-popping 16%. But that’s just the beginning.

If, in its first four quarters as a public company, the trust generates cash flow that exceeds the incentive threshold, the yield jumps all the way to 17%... possibly 18%.

Traditionally, the company sponsoring the trust has been conservative in setting distribution targets.

However, my sources tell me the company—strikingly out of character—is speaking excitedly about this play, yet another indication of the extraordinary potential for investors.

Carpe diem alert...

You don’t want to delay: This royalty trust is so new, most brokers and financial websites still list its yield as zero... giving you an excellent opportunity to seize the day and pick up units before the general investing public catches on to this trust’s supersize distribution potential.

This could well be the beginning of an historic Prudhoe Bay-style dividend run—one for the investing history books.

Now, here’s where you come in: My team and I have exhaustively researched this company and will be delighted to send you our complete report—including the stellar dividends you can expect.

All I ask is that you give my investing newsletter, The Energy Strategist, a test run. Put it to your own personal test—the tougher, the better.

My second pick: a new oil trust
yielding 11%

Also located in Oklahoma, this trust went public last year and owns royalty interests in 37 horizontal wells producing oil and natural gas—with a stake in 123 additional wells to be drilled over the next few years.

Already paying out an 11.1% yield, the potential returns ahead are impressive. I realistically expect yields as high as 14%.

In addition, continued high oil prices and rapid distribution growth could drive up the price of the common shares, further enhancing our investment.

And as I mentioned above, I expect oil prices to hit $150/bl over the coming years due to rapidly increasing global demand.

I sincerely believe income investing in proven energy sources is the way to go in this edgy, up-and-down market.

And the two royalty trusts I’ll fill you in on are among the highest-yielders anywhere. Think of them as the bankrollers of your dream retirement—or just the peace of mind that comes from a supersized nest egg.

The Energy Strategist puts your money squarely
in the path of the greatest global need for power generation in the history of the planet

We all know we’ve said goodbye to cheap energy. The world is locked in an economic battle royal over ALL proven energy resources for the foreseeable future.

In The Energy Strategist, you’ll find scores of mouthwatering energy stocks in a wide variety of energy sectors.

We profile them for you in our three portfolios—Wildcatters (for growth investors), Proven Reserves (for income investors) and Gushers (for more aggressive growth investors).

With your first issue, you’ll know that my newsletter gives you access to some of the most extraordinary investments you’ll ever come across.

For example...

  • Global genius. This international outfit is renowned as an expert provider of services related to mature oil fields. It boasts a strong presence in North America where its genius has been in offering state-of-the-art technologies that squeeze gas and oil from older fields, as well as unconventional fields, such as the Marcellus Shale in Appalachia. And what’s your projected upside? 87% profits in 18 months or less.
  • Gushing profits. The world’s leading land drilling contractor and one of the largest land well-servicing and work-over contractors in the U.S. and Canada. Frenzied drilling in liquids-rich U.S. shale plays continues to support robust demand for newly built units. 75 percent of the firm’s current income in the U.S. and Canada comes from oil and liquids—commodities that still command elevated prices. And what’s your projected upside? 56% profits in 18 months or less.
  • A “must-own” oil services winner. This brilliant outfit has earned a deserved reputation for developing and commercializing some of the most advanced technologies out there. One example is their breakthrough, high-tech seismic equipment for mapping deepwater oil fields. Another innovation is advancing the production efficiency of horizontal wells making history in the Bakken Shale play and elsewhere. And what’s your projected upside? 35% profits in 18 months or less.

My job is to make money for investors who subscribe to The Energy Strategist—as much money as possible in this frantic scramble for proven energy.

How are we doing lately? You be the judge.

Recently we’ve posted some truly eye-opening gains:

  • 246% in pipelines
  • 169% in contract drilling
  • 163% in petroleum services
  • 134% in independent oil and gas
  • 81% in energy transport

Please note: These are all current portfolio positions—with room to grow even more profits for us.

It’s amazing how quickly you’ll become accustomed to such gains—compared to the frustrating performance of the U.S. markets over the past decade.

Did you know the S&P 500 is about where it was
on January 1, 1999? Can you afford another
13 years of your money going nowhere?

I don’t think so.

Consider this fact alone...

In order to sustain an average-length retirement, you’ll need a nest egg of at least $1 million just to preserve your present standard of living.

Obviously, it’s a whole new ballgame. The prudent old way of saving diligently and relying on a generous pension—the life plan that served our parents and grandparents—simply no longer applies.

I think you’ll quickly see that investments linked to one of the most powerful growth engines in history—the global quest for energy—will put you in a completely different category of nest-egg holder...

... someone who can sit back and relax, assured that their holdings are growing steadily week by week, month by month, year by year.

That’s why I cannot emphasize enough that The Energy Strategist is perfect for your life and times. You do not have to be a finance buff or a stock-market wizard to profit from it.

In fact, many of my subscribers are retirees. The last thing they want is to subject their hard-earned savings and nest-egg money to the nerve-jangling lurches of today’s markets.

But if you are concerned (as you should be) about being left behind by the new, sweeping financial realities, then you can be certain The Energy Strategist will help you like no other source in existence.

Build your millionaire retirement portfolio
with The Energy Strategist

Here’s what you can look forward to as a subscriber:

In-Depth Analysis: Twice a month you’ll receive my investment newsletter chock full of research and picks in up-and-coming energy sectors and investments. We’ve done our homework, be assured. You’ll see it all in clear and easy-to-read graphs and charts pointing the way to profits!

Flash-Alert Emails: Today’s world and the markets change on a dime—we’ll keep you on top of it all with up-to-the-second alerts on shifting markets, fluctuating earnings and developing political storms that could affect your holdings. You’ll be primed to seize new opportunities with the latest flash direct from me to your inbox—no waiting for website updates!

Special Reports: With our “White Papers,” you’ll have all the tools you need to interpret company reports or understand complex taxes like a pro! At a click, we put the highest-quality advice and instruction in your hands.

Exclusive Member Online Chats: My online chats give you the opportunity to “fire away” and ask specific questions about energy companies and investments.

Unlimited Website Access: You’ll gain hands-on access to every single story we’ve ever published. This is the mother lode of information. Our unsurpassed library is as easy as see it, click it, find it. What should you expect of the dollar when the price of oil spikes? Which oil stocks held on when the gulf rigs washed out? Research the history and be ready for the next big blow.

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In addition, you’ll gain personal access to me whenever I speak at investment events! I love talking to my loyal subscribers, so consider my brain and my time yours.

Or shoot me an email! I’ll answer urgent questions ASAP, and respond quickly to less time-sensitive inquiries. My subscribers can even ring me direct and I’ll pick up the phone! That’s how committed I am to meeting all your investing needs.

Step one: Try a 3-month
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I sincerely believe the bare-knuckles, trillion-dollar global brawl over proven energy resources is a true, unstoppable trend.

I’m also convinced the U.S. is about to launch a new era in aggressive domestic energy production the likes of which hasn’t been seen in generations.

These are the two 100% take-them-to-the-bank megatrends of our time.
And like the great leap of the U.S. in the 19th century to industrialized-superpower status, these megatrends will create great fortunes.

I want your fortune to be counted among them—and The Energy Strategist is the best way to get started.

Normally, a package of investor services like ours costs $1,000 to $3,000 a year.
With this special introductory invitation, you can try The Energy Strategist for the next three months on a $147 “give-it-a-fair-shot” quarterly subscription basis.

Remember, the risk of trying The Energy Strategist is... zero.

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Robert Rapier
Robert Rapier
Editor, The Energy Strategist

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