EnergyNet
B2B marketplace for oil & gas asset sales via continuous auctions and sealed bids—48K+ registered buyers, ~84% transaction success rate, $1K-$250M+ deal range. Industry participants only; not a retail investment platform.
Platform Overview
B2B marketplace platform connecting oil & gas asset sellers (E&P companies, mineral owners, government agencies, institutions) with qualified buyers (operators, private equity, royalty aggregators, HNW individuals) through continuous online auctions, sealed bid processes, and negotiated sales. Platform operates 24/7/365 with weekly closes across all major US basins, providing transaction advisory services including engineering analysis, data room preparation, buyer marketing, and deal structuring. Founded 1999; operates as registered broker-dealer (FINRA member) earning success-based commissions only on completed transactions—no upfront fees or penalties if reserve not met. Scale per company materials (as of Jan 2026): 48K+ registered buyers with 8,200+ monthly participants, $11B+ cumulative transactions, ~84% success rate, 1,250+ annual closes, 45,000+ properties transacted since inception. Not a retail investment platform—facilitates direct asset purchases between industry participants requiring substantial expertise and capital.
Platform operates 24/7/365 with weekly closes, facilitating transactions from $1,000 to $250M+ across all major US producing basins. Business model: Transaction advisory service providing technical due diligence (engineering, geology, land), data room preparation, buyer outreach, and structured sales process—earns success-based commissions only on completed deals with no upfront fees or penalties if reserve not met. Per company materials as of January 2026: 48,000+ registered buyers, nearly $11B in completed transactions since founding, 45,000+ properties sold, 84% deal close rate, 1,250+ annual transactions closings. Platform founded in Amarillo, Texas; now part of Efficient Markets holding company with subsidiaries including Indigo Energy Advisors (complex deals $20M-$250M+), Government Resources (federal/state lease sales), Alternative Energy (renewables), and Land & Real Estate. Asset types: Producing working interests (operated and non-operated), overriding royalty interests (ORRI), royalty interests, mineral rights, non-producing leasehold, full field packages. Geographic focus: Lower 48 United States across all major basins—Permian, Eagle Ford, SCOOP/STACK, DJ Basin, Bakken, Appalachia, Gulf Coast, others. Typical transaction process: ~35 days (company statement) from seller data package submission to proceeds distribution; includes data room creation, buyer marketing, bidding period, high bidder verification, title review, closing coordination. Platform provides: Property valuation guidance, engineering analysis, reserve reports, production forecasting, competitive market intelligence, structured bidding mechanics, escrow coordination, document preparation. Buyer network includes: Publicly-traded E&P companies (majors and independents), private equity-backed operators, upstream MLPs, regional operators, royalty aggregators, institutional investors, family offices, high-net-worth individuals. Notable sellers (per platform materials): Chevron, ExxonMobil, Apache, Shell, Total, Devon, Marathon, FDIC, State of North Dakota, Bank of America, Wells Fargo, Harvard University, Stanford University. Government services: Bureau of Land Management (BLM) oil & gas lease auctions, state land office sales (Texas GLO, New Mexico, Utah, Colorado, North Dakota), federal real estate disposition. Platform's operational structure: 45+ full-time A&D professionals including petroleum engineers, geologists, landmen, financial analysts; offices in Houston, Amarillo, Dallas, Midland, Denver, Oklahoma City. Technology infrastructure: Proprietary online bidding platform with real-time auction dynamics, comprehensive data room access, secure document exchange, automated buyer verification, escrow integration. Regulatory framework: Operates through EnergyNet Securities LLC registered broker-dealer (FINRA member, SEC oversight); subject to securities regulations for offerings that constitute securities, though many mineral/royalty transactions may not be securities. Risk considerations: Commodity price volatility affecting asset values, reserve risk (actual production may differ from projections), operator performance risk for non-operated interests, title defects, regulatory changes, decline curves steeper than forecasted. Not for: Retail investors seeking passive income investments, individuals without oil & gas industry expertise, buyers unable to conduct independent technical due diligence, parties requiring extensive deal customization or seller financing. Market context: US upstream A&D market highly cyclical with transaction activity driven by commodity prices, capital availability, and strategic considerations—strong markets see robust deal flow and aggressive bidding while downturns produce material activity decline. Competitive positioning: Platform competes with traditional A&D brokers (Opportune, Petrie Partners, Enverus), bilateral negotiations between industry participants, and increasingly with direct company-to-company outreach through industry networks—differentiates through continuous marketplace model, buyer network scale, and technology infrastructure versus episodic brokered deals. Key considerations for users: Platform facilitates transactions but does not guarantee outcomes; sellers must set realistic reserves considering market conditions; buyers responsible for own due diligence despite data room materials; auction mechanics favor sellers through competitive bidding but may disadvantage buyers through compressed timelines and limited negotiation flexibility; success-based fee structure aligns platform with transaction completion but could create pressure to close deals even when waiting might yield better seller outcomes.
Founded & Structure
1999 in Amarillo, Texas by founders developing first server-based real-time internet oil & gas auction service; now operates as subsidiary of Efficient Markets holding company alongside Indigo Energy Advisors, Government Resources, Alternative Energy, and Land & Real Estate divisions; registered broker-dealer (EnergyNet Securities LLC, FINRA member).
Platform Scale
Per company materials as of January 2026: 48,000+ registered buyers with 8,200+ participating monthly and over $6 billion in aggregate registered funds ready to bid, $11B+ cumulative closed transactions across 25+ year history, ~84% transaction success rate, 1,250+ transactions closing annually. Note: Property count figures vary across platform pages—some state 45,000+ properties transacted since inception while others reference higher figures; discrepancy may reflect different definitions of 'property' (individual parcels vs bundled interests).
Transaction Range
Individual assets from $1,000 (small mineral interests) to $250M+ (large field packages or portfolio deals); platform historically focused on $1K-$20M range but expanded through Indigo Energy Advisors subsidiary to serve complex transactions $20M-$250M+ requiring enhanced technical advisory and structured sale processes.
Asset Types Facilitated
Producing working interests (operated and non-operated positions), overriding royalty interests (ORRI), royalty interests (landowner royalties), mineral rights (undivided interests in minerals), non-producing leasehold (acreage under lease but not yet producing), full field packages (entire field acquisitions), government lease sales (federal BLM and state land office offerings).
Geographic Coverage
Lower 48 United States across all major producing basins: Permian (Texas/New Mexico), Eagle Ford (South Texas), SCOOP/STACK (Oklahoma), DJ Basin (Colorado/Wyoming), Bakken (North Dakota), Appalachia (Marcellus/Utica), Haynesville (Louisiana/Texas), Anadarko (Oklahoma/Texas), Powder River (Wyoming), San Juan (New Mexico), Gulf Coast, California, others.
Transaction Structures
Continuous online auctions (24/7/365 bidding, weekly closes with transparent competitive bidding), sealed bid processes (confidential bids submitted by deadline, highest bidder wins), negotiated sales (bilateral discussions with pre-qualified buyers for strategic or complex assets), government lease sales (public auctions for federal/state mineral leases following agency-specific procedures).
Typical Timeline
Platform describes typically ~35 days from seller data package submission to proceeds distribution (company statement); includes data room preparation, buyer marketing campaign, bidding period (typically 2-3 weeks), high bidder verification (2 business days), title review, purchase agreement execution, escrow funding, closing coordination—timeline may extend for larger or more complex transactions requiring additional due diligence or curative work.
Buyer Network Composition
Industry participants per platform materials: publicly-traded E&P companies (majors and large independents), privately-held E&P operators (regional and multi-basin), private equity-backed portfolio companies, upstream MLPs and publicly-traded partnerships, royalty aggregators and mineral funds, institutional investors and family offices, banks and trust departments, foundations and universities, high-net-worth individuals with industry expertise.
Seller Services
Transaction advisory including: property valuation and pricing guidance, petroleum engineering analysis (reserve estimates, decline curves, type curves), geological assessment and upside identification, production data compilation and forecasting, data room creation with comprehensive documentation, buyer marketing campaign and outreach, competitive bidding process management, title review coordination, closing logistics and document preparation, escrow services.
Buyer Qualification Process
Platform verifies buyers through: registration and account creation, financial institution verification (bank contact to confirm requested bid allowance is sufficient and liquid), confidentiality agreement execution, accreditation status confirmation for applicable offerings, ongoing monitoring of buyer performance and transaction completion rates—pre-qualification designed to ensure serious bidders with available capital.
Fee Structure
Success-based commission model per platform description: sellers pay commission only on completed transactions (no payment if property does not sell or fails to meet reserve), no promotional fees to list properties, no penalty fees if reserve not achieved, commission rates not publicly disclosed but described as competitive with traditional A&D brokerage—commission structure aligns platform revenue with seller outcomes but specific percentages and sliding scales by deal size not transparent.
Reserve Price Mechanics
Sellers set minimum reserve price (floor below which property will not sell); reserve can be set at any level on any size property; platform does not publicly disclose reserve prices to bidders (bidding starts at undisclosed level); if bidding does not reach reserve, property does not sell and seller owes no commission; 84% close rate implies 16% of listings fail to meet reserve—unsuccessful auctions may indicate reserve set too high relative to market or asset quality concerns.
Due Diligence Materials
Platform prepares data rooms including: production history and decline curve analysis, reserve reports and type curves, well files and completion data, lease and title information, operating agreements and division orders, revenue and expense statements, area maps and well locations, regulatory filings and permits, development plans and upside cases—buyers access materials online but responsible for own technical, legal, and financial review.
Notable Milestones
Per company materials: 1999 founded as first internet oil & gas auction platform; 2008 awarded BLM contract for Oil and Gas Lease Internet Auction Pilot program; 2012 exceeded $1B cumulative sales; 2014 set annual record $283M; 2016 Forbes declares 75%+ online oil field auction market share; 2017 MPK Equity Partners investment; 2018 sold 142 parcels for BLM New Mexico exceeding $987M; 2021 launched Indigo Energy Advisors for $20M-$250M+ deals; 2024 celebrating 25+ years.
🔄Critical Context for B2B Marketplace Evaluation
- Nearly $11B in aggregate transactions across 25+ years represents substantial volume but lacks granularity—year-over-year breakdown, commodity cycle performance, and deal size distribution not disclosed; volume likely concentrated in high oil price periods (2005-2008, 2010-2014, 2017-2019, 2021-2022) with material declines during downturns (2015-2016, 2020).
- 84% close rate marketed as execution strength but implies 16% of listings fail to sell—unsuccessful auctions consume seller time/resources and may signal adverse selection where lower-quality or overpriced assets disproportionately fail; platforms that attract distressed sellers or unrealistic reserves could show lower close rates.
- Success-based commission model eliminates seller upfront risk but creates platform revenue dependence on closings—potential misalignment where platform incentivized to encourage sellers to reduce reserves or accept bids even when waiting for better market conditions might yield superior outcomes; no payment if reserve not met reduces pressure but platform still benefits from transaction velocity.
- 48K+ registered buyers provides impressive scale but registration does not equal active participation—likely power law distribution where small percentage of buyers account for majority of winning bids; actual competitive bidding on specific properties may involve much smaller number of active participants depending on asset type, location, and size.
Key Gaps & Non-Disclosures
- Commission rate structure and comparison to alternatives—platform describes success-based fees but does not disclose percentage rates, whether fees decline with transaction size, or how costs compare to traditional A&D brokerage (typically 1-3% for larger deals) or bilateral negotiations (no brokerage fee).
- Buyer concentration and repeat purchaser analysis—whether transaction volume comes from broad buyer base or concentrated among small number of active acquirers; high concentration could reduce competitive dynamics and effective market pricing.
- Reserve achievement statistics—84% close rate disclosed but not what percentage of closed deals meet, exceed, or fall short of seller target pricing; properties consistently trading below reserve would indicate systematic overvaluation.
- Performance during commodity downturns—25+ year history spans 2008-2009 financial crisis, 2014-2016 oil crash (prices from $100+ to $26), and 2020 COVID collapse (briefly negative WTI pricing), but disclosure does not address execution, close rates, or pricing premiums/discounts during severe market stress.
- Time on platform before closing—whether ~35 days (company statement) timeline represents typical case or best case; properties taking longer to sell may indicate market reception issues or pricing challenges not captured in aggregate statistics.
Investment Structures
EnergyNet is NOT an investment platform for retail investors. It is a B2B marketplace facilitating direct purchases of oil & gas assets (working interests, royalties, mineral rights) between industry participants. The platform does not offer investment products, securities, or pooled vehicles accessible to typical investors. Buyers acquire direct ownership of energy assets and assume all operational, financial, and regulatory responsibilities. Participation requires industry expertise, substantial capital, and often accredited investor status for applicable securities transactions.
- Direct asset purchases only—buyers acquire legal ownership of working interests, royalties, or minerals with direct exposure to commodity prices, production decline, and operational risks
- No investment products or securities offered—platform facilitates asset sales between parties but does not structure, manage, or sponsor investment vehicles for retail investors
- Industry participant marketplace—buyers typically E&P companies, operators, institutions, or high-net-worth individuals with oil & gas expertise; not suitable for passive investors seeking diversified exposure
- Substantial capital requirements—transaction range from $1K (small mineral interests) to $250M+ (field packages), with most meaningful positions requiring $100K-$10M+ commitments depending on asset type and location
- Ongoing operational involvement—working interest buyers must manage operations, regulatory compliance, revenue distribution, and tax reporting; royalty/mineral buyers have more passive exposure but still require industry knowledge for valuation and risk assessment
- Limited liquidity post-purchase—acquired assets are illiquid with no guaranteed resale market; sellers often return to platform for subsequent divestitures but transaction timing and pricing dependent on market conditions and buyer interest
Risk Structure
B2B marketplace, not investment manager
Platform facilitates transactions between buyers and sellers but does not hold assets, provide fiduciary advice, or guarantee outcomes—buyers assume all acquisition risks and responsible for own due diligence despite data room materials provided; platform's role limited to marketing, process structuring, and coordination.
Success-based commission model
Platform earns fees only on completed transactions (no payment if reserve not met), aligning interests with closing deals but potentially creating pressure to encourage sellers to accept bids even when waiting for better market conditions might yield superior outcomes—revenue model depends on transaction velocity.
Auction format with compressed timelines
Typical ~35 days (company statement) process from listing to closing enables fast execution but limits due diligence time versus bilateral negotiations—compressed schedules may inadequately serve complex properties with title issues, non-operated interests requiring extensive operator review, or assets requiring detailed engineering analysis.
Buyer registration vs active participation
48K+ registered buyers provides scale but registration does not equal active bidding—likely power law distribution where small percentage of buyers account for majority of transactions; individual property auctions may attract only handful of serious bidders depending on asset characteristics.
Reserve price and close rate dynamics
Sellers set reserve prices determining minimum acceptable bid; 84% close rate indicates strong execution but 16% of listings fail to sell—unsuccessful auctions may reflect unrealistic reserves, asset quality concerns, or adverse market conditions; properties that fail to sell consume seller time without proceeds.
Commodity price exposure and cyclicality
Oil & gas asset values highly sensitive to commodity prices which are volatile and unpredictable—platform's transaction volume and pricing premiums likely cyclical with concentration in strong markets and material declines during downturns; nearly $11B aggregate volume across 25+ years potentially concentrated in boom periods.
Commodity price volatility and asset value fluctuation
Risk Summary
Oil & gas asset values directly tied to crude oil and natural gas prices which exhibit extreme volatility—WTI crude has ranged from negative $37 (April 2020) to $140+ (2008, 2022) within recent history; natural gas similarly volatile. Acquired assets may experience material value declines if commodity prices fall after purchase, creating unrealized losses and cash flow pressure.
Why It Matters
Buyers acquiring assets during high price environments risk substantial value impairment if commodities decline—2014-2016 crash saw many acquisitions become economically challenged with cash flow insufficient to service acquisition debt; 2020 COVID collapse rendered many marginal properties uneconomic; buyers purchasing at cycle peaks face extended recovery periods or permanent capital loss.
Mitigation / Verification
Underwrite acquisitions using conservative long-term price assumptions (not spot prices); stress test cash flows against $40-50 WTI and $2.50-3.00 Henry Hub scenarios; ensure adequate liquidity to weather extended downturns; consider hedging programs to lock in revenues for 12-24 months post-acquisition; avoid leverage that becomes unsustainable if prices decline 30-40% from purchase decision levels; understand breakeven economics and shut-in thresholds.
Reserve risk and production decline uncertainty
Risk Summary
Proved, probable, and possible reserve estimates are probabilistic projections based on decline curve analysis, analogous well performance, and geological interpretations—actual production may differ materially from projections due to steeper decline rates, mechanical issues, water influx, pressure depletion, or reservoir heterogeneity. Platform's data rooms include reserve reports but these are forward-looking estimates, not guarantees.
Why It Matters
Overestimating reserves or underestimating decline rates leads to acquisition valuation errors—buyers may pay based on projected 10-year EUR (estimated ultimate recovery) that proves 20-40% optimistic in actual production; shale wells particularly prone to hyperbolic decline where initial high rates drop precipitously; conventional properties face waterflood responses or pressure depletion reducing recovery.
Mitigation / Verification
Conduct independent reserve evaluation using conservative decline curves and recovery factors; compare projected performance against analogous offset wells with longer production history; focus on proved developed producing (PDP) reserves with established performance rather than unproven categories; heavily discount or exclude probable/possible reserves from valuation; monitor actual production against projections post-closing and adjust operating plans; understand field/basin decline characteristics.
Operator performance risk for non-operated interests
Risk Summary
Non-operated working interests (where buyer owns percentage but does not control operations) expose owners to operator decisions regarding drilling, completion, workover, and abandonment timing—operator may have different economic priorities, capital availability, or strategic objectives than non-operating partners; poor operator decisions reduce asset value.
Why It Matters
Non-operating partners have limited recourse if operator underinvests in workovers, delays necessary capital projects, or makes suboptimal decisions—operators facing financial distress may defer maintenance or fail to optimize production; non-operators bear proportionate costs but cannot control timing or efficiency; operator bankruptcy creates complications for non-operating partners trying to recover interests.
Mitigation / Verification
Research operator reputation, financial strength, and track record in basin; review operating agreements for consent rights, force pooling protections, and non-consent provisions; prefer established operators with strong balance sheets over financially stretched independents; understand operator's incentives (high working interest operators more aligned than those with minimal skin in game); maintain relationships with operators for operational visibility; consider operated interests or operator consolidation opportunities.
Title defects and ownership disputes
Risk Summary
Oil & gas property title often complex with decades of conveyances, partial interests, fractionated ownership, disputed heirship, unrecorded instruments, or competing claims—title issues may not surface until post-closing when attempting to market production or sell interests; legal disputes over ownership can be protracted and expensive.
Why It Matters
Title defects can render interests unmarketable, reduce net revenue interest (buyer owns less than believed), create liability exposure from prior owner obligations, or result in complete loss if ownership claim invalidated—mineral titles in states like Texas particularly complex with Spanish land grants, railroad deeds, and surface/mineral severances creating ambiguity; curative work expensive and time-consuming.
Mitigation / Verification
Retain experienced oil & gas attorney for title review before closing; obtain title opinions from reputable firms; require seller to cure material defects or escrow funds for curative work; purchase title insurance where available (though coverage limited for mineral interests); budget for curative costs post-closing; understand state-specific title requirements and recording practices; review chain of title for gaps or irregular conveyances.
Environmental and regulatory liabilities
Risk Summary
Oil & gas properties may carry environmental liabilities from historic operations: produced water disposal, soil contamination, groundwater impacts, tank battery releases, pipeline leaks, or unplugged abandoned wells—state regulations increasingly require operators to demonstrate financial assurance for plugging/reclamation obligations; buyers may inherit prior owner liabilities under successor liability doctrines.
Why It Matters
Plugging and abandonment (P&A) costs for wells can exceed $50K-$500K+ per well depending on depth and complexity—large packages with marginal wells may carry unfunded P&A liability exceeding asset value; environmental remediation costs unpredictable and can reach millions for contaminated sites; regulatory bonding requirements increasing, particularly in states like Colorado, New Mexico, and California; buyers must budget for end-of-life liabilities.
Mitigation / Verification
Conduct Phase I environmental assessments on properties with known historical issues; review state plugging and bonding requirements; estimate P&A liability for non-producing or marginal wells; ensure purchase agreements include environmental indemnities with creditworthy sellers; obtain operator commitments for regulatory compliance; budget reserves for eventual plugging obligations; understand state orphan well programs and operator responsibility; avoid properties with known contamination unless discounted appropriately.
Compressed due diligence and auction dynamics
Risk Summary
Platform's typical ~35 days (company statement) timeline from listing to closing limits due diligence period versus traditional bilateral transactions that may allow 60-90+ days—auction format requires buyers to submit bids with limited information, conduct accelerated technical review, and accept standardized purchase terms with minimal negotiation; winners curse risk where most aggressive bidder overpays.
Why It Matters
Insufficient due diligence time increases acquisition risk—complex properties with extensive well counts, multiple operators, or intricate title issues may not receive adequate review; buyers forced to make assumptions or rely on platform's data room materials without independent verification; competitive bidding pressure may lead to aggressive pricing assumptions or overlooked risks; standardized agreements limit ability to negotiate representations, warranties, and indemnities.
Mitigation / Verification
Focus auction participation on property types where firm has established evaluation capabilities and can conduct accelerated due diligence; develop standardized screening criteria and decline to bid on complex properties without adequate review time; build internal databases of basin economics, operator performance, and comparable transactions for rapid benchmarking; negotiate post-closing remedies for material undisclosed issues; consider negotiated sale track for complex acquisitions requiring extended diligence; resist competitive pressure to bid beyond internally justified valuations.
Liquidity and exit timing uncertainty
Risk Summary
Oil & gas properties are illiquid assets with no guaranteed resale market—owners seeking to divest must find willing buyers through platform, brokers, or direct outreach; exit timing and pricing dependent on commodity market conditions, asset quality, and buyer demand; may require listing for extended period or accepting below-target pricing to achieve liquidity.
Why It Matters
Buyers should treat acquisitions as long-term holds (5-15+ years) rather than liquid investments—attempting to flip properties quickly often results in discounted pricing as buyers question why seller exiting; downturn markets may see months or years to find buyers for non-core assets; distressed sellers facing financial pressure may be forced to accept unfavorable pricing; properties that fail to sell at auction consume time and create valuation uncertainty.
Mitigation / Verification
Underwrite acquisitions assuming long hold periods and plan for ongoing operation/management; maintain adequate liquidity to avoid forced sales during market downturns; set realistic reserve prices if listing for sale, recognizing that overpriced properties fail to transact; consider strategic buyer universe (who would logically want this asset) before acquiring; avoid acquisitions that cannot be economically operated standalone if resale timing uncertain; treat properties as operating businesses rather than trading positions.
Platform fee structure and incentive misalignment
Risk Summary
Success-based commission model means platform only earns fees on completed transactions—creates strong incentive to close deals and generate volume, potentially encouraging sellers to accept bids even when waiting for better market conditions might yield superior outcomes; no upfront fees eliminate seller risk but platform benefits from transaction velocity over optimization.
Why It Matters
Sellers relying on platform's market timing and pricing recommendations should understand platform's revenue model incentivizes closing transactions rather than patient waiting for optimal conditions—during soft markets, platform may encourage accepting available bids rather than recommending withdrawal and re-marketing later; commission structure also may influence reserve price recommendations (lower reserves increase close probability).
Mitigation / Verification
Sellers should independently assess market timing and conditions rather than solely relying on platform recommendations; monitor commodity prices, comparable transactions, and buyer appetite before committing to auction timeline; be willing to pull properties if market softens during marketing period; set reserve prices based on own valuation rather than platform guidance; recognize that once auction closes, seller obligated to convey at high bid if reserve met—no ability to reject offers post-closing.
Regulatory & Legal Posture
Security Status
Operates through registered broker-dealer (EnergyNet.com, LLC, FINRA member/SIPC); many oil & gas property transactions (mineral rights, royalty interests) may not constitute securities under federal/state law but platform maintains broker-dealer status for comprehensive regulatory coverage
Oil & gas property transactions occupy complex regulatory space—working interests in operating partnerships may constitute securities requiring registration or exemption (typically Regulation D private placements), while passive royalty/mineral interests often treated as property conveyances not subject to securities laws under typical Howey test analysis (no expectation of profits primarily from efforts of others). Platform's broker-dealer registration provides regulatory framework and investor protections for transactions that may constitute securities, though specific regulatory treatment depends on transaction structure and interest type. SEC/FINRA oversight ensures platform maintains proper licensing, recordkeeping, and customer protection procedures. Buyers should consult legal counsel to determine whether specific transaction involves securities and applicable regulatory requirements. Platform's registration provides legitimacy and compliance infrastructure but does not eliminate buyer due diligence obligations or guarantee transaction outcomes. State oil & gas regulations (Railroad Commission of Texas, New Mexico Oil Conservation Division, etc.) govern operational aspects but generally not transaction mechanics handled through private contract law.
Disclosure Quality
Platform provides comprehensive data rooms with production data, reserve reports, engineering analysis, well files, operating agreements, and title information—disclosure quality generally strong for property characteristics but future-oriented (reserve estimates, projected economics, development plans). Buyers receive access to materials typically available in bilateral transactions but condensed timeline limits ability to request additional information or conduct extensive follow-up diligence. Platform does not provide investment advice or suitability determinations—buyers responsible for own analysis of acquisition merits and risks. No ongoing disclosure obligations post-closing as these are asset purchases not investment products—buyers assume direct ownership and monitoring responsibilities. Government lease sales include additional regulatory disclosures per BLM or state land office requirements but most private party transactions follow standard A&D practices with negotiated representations and warranties in purchase agreements.
Custody Model
Platform does not hold custody of assets—facilitates transactions where sellers directly convey title to buyers through recorded deeds, assignments, and conveyancing documents; platform coordinates closing mechanics, escrow funding, and document recording but buyers receive direct legal ownership of working interests, royalties, or mineral rights
Broker-dealer registration provides SEC/FINRA oversight and regulatory protections (recordkeeping, anti-fraud provisions, customer protection rules) but does not include SIPC coverage as platform does not hold customer securities in custody—transactions are direct property sales with ownership transferred through county deed records or operator records for working interests; buyers should verify proper recording and title transfer post-closing; escrow services for purchase price provide payment security during closing process.
Tax Treatment
Reporting
Tax treatment depends on interest type: Working interests generate Form 1099-MISC or Schedule K-1 from operating partnerships reporting oil & gas revenue less expenses; Royalty interests generate Form 1099-MISC reporting gross royalty payments from operators; Mineral interests typically no current reporting until leased/producing
Working interest owners receive monthly or quarterly revenue statements from operators with detailed production, pricing, and expense information; annual Form 1099-MISC (or K-1 if partnership structure) issued by January 31 for prior tax year reporting gross revenues and expenses. Royalty interest owners receive monthly payments with detail statements; annual Form 1099-MISC by January 31 reporting aggregate royalty income. Buyers responsible for tracking basis, depletion, and capital expenditures for tax purposes—complex tax reporting requiring oil & gas tax specialists in many cases. Self-employment tax may apply to working interests operated as sole proprietorship; partnership structures provide K-1 reporting with potential passive activity limitations.
Income Character
Oil & gas income is ordinary income (not capital gains)—working interest revenue taxed as business income subject to self-employment tax for active operators; royalty income treated as ordinary income but not subject to self-employment tax; mineral sale proceeds may qualify for capital gains treatment if held as investment property
Oil & gas taxation follows unique rules: Working interest owners entitled to deduct intangible drilling costs (IDCs), depreciate equipment, and claim percentage or cost depletion—these deductions can offset significant portion of revenue in early years; royalty owners limited to cost depletion (return of basis) without IDC deductions; active working interest operators pay self-employment tax on net income (15.3% FICA) while royalty owners exempt from SE tax. Alternative Minimum Tax (AMT) considerations for percentage depletion and IDC expensing may apply to high-income taxpayers. State tax treatment varies—producing state severance taxes (Texas 4.6% oil + 7.5% gas, New Mexico 3.75% oil + 3.75-4% gas, others) imposed at wellhead reducing net revenues. Working interest owners generally cannot use passive activity loss limitations to offset other income (material participation exception if >500 hours involvement). Tax benefits of working interests (IDCs, depletion, expense deductions) make them attractive to high-income individuals seeking ordinary income offsets, while royalties provide more passive exposure without operational obligations. Sale of interests held >1 year generally qualifies for long-term capital gains treatment (0-20% rates) versus ordinary income rates (up to 37% federal). Complex partnerships (Master Limited Partnerships, private equity funds) may generate Schedule K-1s with multiple income types, passive/non-passive classifications, and state filing requirements across producing states.
Oil & gas tax rules are complex and fact-specific—require specialized tax advisors familiar with energy industry; IDC benefits primarily valuable to high-income taxpayers who can use deductions against ordinary income; depletion allowances limited by basis and income constraints; state filing requirements in every producing state create administrative burden and compliance costs; non-operating working interests may be passive activities subject to PAL limitations unless material participation exception met; AMT considerations reduce benefits for some taxpayers; royalty income more straightforward but lacks deduction benefits; tax treatment may change if Congress eliminates oil & gas preferences (IDC expensing, percentage depletion) which have been proposed in various tax reform efforts. Consult qualified oil & gas tax advisor before acquiring interests.
Account Suitability
Taxable
Most suitable account type—oil & gas investments typically held in taxable accounts to utilize IDC deductions, depletion allowances, and expense write-offs against ordinary income; working interests particularly valuable in taxable accounts for high-income individuals seeking current-year tax benefits; capital gains treatment on eventual sale provides tax efficiency for long-term holds.
Roth IRA
Generally not suitable—IRA investments in working interests create Unrelated Business Taxable Income (UBTI) requiring IRA to file Form 990-T and pay income tax on UBTI exceeding $1,000, negating tax-deferred benefits; royalty interests may avoid UBTI but generate ordinary income in tax-deferred account without ability to use deductions or depletion; custodian restrictions typically prohibit oil & gas property ownership in IRAs due to operational complexity and UBTI; self-directed IRAs technically can hold interests but administrative burden and tax complications make this impractical.
Traditional IRA
Generally not suitable—same UBTI concerns as Roth IRA; working interests generate UBTI taxable to IRA; traditional IRA distributions taxed as ordinary income regardless of underlying source, eliminating any capital gains benefit; royalty income deferred until distribution but cannot utilize depletion or deductions that would reduce tax in taxable account; custodian restrictions and operational complexity make oil & gas property ownership impractical in traditional IRAs.
HSA
Not suitable—HSA custodians do not accommodate oil & gas property ownership; investments must be liquid securities (stocks, bonds, mutual funds); operational requirements and tax reporting incompatible with HSA structure; no ability to hold working interests, royalties, or mineral rights in HSA accounts.
Investor Fit
E&P companies seeking acquisitions in core operating areas
Platform provides continuous deal flow in all major US basins enabling operators to acquire bolt-on acreage, working interests, or field packages in areas where they already operate—synergies from existing infrastructure, technical knowledge, and operational presence create value through G&A consolidation, drilling economies of scale, and optimized field development; auction format enables operators to compete for strategic assets while success-based fees limit costs if acquisitions not completed.
Private equity firms and financial buyers with energy expertise
Platform facilitates PE acquisition strategies through continuous marketplace with deal flow ranging from $1K to $250M+—Indigo Energy Advisors subsidiary specifically serves complex transactions $20M-$250M+ requiring enhanced advisory; PE firms can deploy capital opportunistically while platform's buyer network and auction mechanics provide future exit liquidity; requires energy investment expertise for underwriting and typically partnership with operating companies for post-closing management.
Regional operators and independents expanding asset base
Smaller E&P companies benefit from platform's deal flow of individual leases, fields, and packages sized $100K-$20M appropriate for regional players—auction process democratizes access versus bilateral deals that favor relationships with major sellers; success-based fees reduce upfront costs allowing operators to pursue multiple potential acquisitions without commitment; requires technical capabilities for due diligence and operations post-closing.
Royalty aggregators and mineral funds seeking passive income streams
Platform provides continuous supply of royalty interests and mineral rights generating passive income without operational obligations—particularly attractive for building diversified portfolios across basins and operators; smaller deal sizes ($1K-$500K typical for royalties) enable incremental deployment; no operational expertise required though reservoir/decline curve knowledge valuable for valuation; long-term hold horizons appropriate given illiquid nature.
High-net-worth individuals with oil & gas industry background
Platform accessible to individuals but requires significant energy industry knowledge for property evaluation and operational management—former industry executives or individuals with operating partnerships can leverage platform for personal acquisitions; working interests require ongoing operational involvement or partnerships with operators; royalty/mineral interests more suitable for passive investors but still require valuation expertise; smaller lot sizes ($1K-$100K) make platform accessible though most economically attractive deals larger.
Institutional investors seeking energy commodity exposure
Direct property ownership provides commodity exposure but creates operational complexity, tax reporting burden, and illiquidity that many institutions prefer avoiding through energy stocks, MLPs, or commodity funds—some institutions (university endowments, foundations, family offices) do participate but typically through specialized managers or JV structures rather than direct platform participation; ESG considerations may preclude fossil fuel asset ownership for some institutional investors.
Retail investors seeking passive income or energy exposure
Platform NOT suitable for typical retail investors—requires direct asset ownership with operational, regulatory, and tax complexity; no investment products, pooled vehicles, or managed structures available; minimum economic positions typically $10K-$100K+ for meaningful exposure; working interests require active management while royalties need valuation expertise; illiquid with no guaranteed exit; alternative vehicles (energy stocks, MLPs, royalty trusts, energy mutual funds/ETFs) provide simpler passive exposure for retail investors.
Investors requiring liquidity or short-term capital deployment
Oil & gas properties are illiquid long-term investments—no guaranteed resale market and exit timing dependent on commodity markets and buyer appetite; attempting to resell acquired properties within 1-3 years often results in discounted pricing as buyers question seller motivations; properties should be evaluated as 5-15+ year holds with ongoing operational commitment; not suitable for investors needing liquidity or deploying capital with defined exit timelines.
Investors without oil & gas industry expertise or operational capabilities
Successful property acquisition and operation requires substantial energy industry expertise—understanding reserve engineering, decline curves, drilling economics, field operations, regulatory compliance, title issues; working interests require ongoing operational involvement or partnerships with qualified operators; even passive royalty interests need technical knowledge for valuation and risk assessment; buyers without industry background risk overpaying for properties, missing critical due diligence issues, or struggling with post-closing management.
ESG-focused investors or institutions with fossil fuel exclusions
Platform exclusively focuses on oil & gas assets which are fossil fuels facing long-term demand uncertainty due to energy transition—many institutional investors (endowments, foundations, pension funds) have divested or restricted fossil fuel holdings due to ESG mandates, stranded asset risks, or stakeholder pressure; acquisitions through platform represent carbon-intensive investments incompatible with net-zero commitments or climate-focused strategies; investors seeking energy exposure with ESG alignment should consider renewable energy platforms, clean tech investments, or energy transition opportunities.
Key Tradeoffs
Market access vs deal terms
Platform provides access to continuous deal flow with 1,250+ annual transactions and 45K+ properties sold historically, enabling buyers to pursue acquisitions without bilateral negotiations or brokerage relationships, but auction format requires accepting standardized purchase agreements with limited negotiation flexibility versus bilateral deals where all terms negotiable—compressed timelines and competitive bidding reduce buyer negotiating leverage.
Speed vs thoroughness
Typical ~35 days (company statement) transaction timeline from listing to closing enables rapid capital deployment and reduces deal uncertainty versus extended bilateral negotiations, but compressed schedule limits due diligence time for complex properties with extensive well counts, multiple operators, or intricate title issues—buyers must conduct accelerated technical, legal, and financial review or accept higher acquisition risk.
Competitive bidding vs winners curse
Auction mechanics maximize seller value through competitive bidding and broad buyer exposure, creating fair market price discovery, but competitive dynamics may lead to overbidding where winning bidder has most optimistic assumptions about reserves, commodity prices, or operational improvements—winners curse risk means aggressive bidders may systematically overpay versus patient buyers pursuing bilateral negotiations.
Success-based fees vs transaction pressure
Platform's commission model eliminates seller upfront costs and penalties if reserve not achieved, aligning platform risk with seller outcomes, but revenue dependence on completed transactions may create subtle pressure for sellers to accept available bids rather than waiting for optimal market conditions—timing decisions influenced by platform's incentive to close deals versus patient capital deployment.
Standardization vs customization
Structured sale process with uniform agreements, bidding mechanics, and closing procedures reduces transaction friction and provides predictable timeline versus bilateral negotiations, but limits ability to negotiate bespoke terms such as seller financing, earnouts, contingent payments, post-closing adjustments, or unique deal structures that might be achievable in direct discussions—standardization favors efficiency over customization.
Who This Is Not For
Retail investors seeking passive income or energy sector exposure
Platform facilitates direct oil & gas property purchases requiring substantial industry expertise, operational capabilities, and ongoing management—not investment product suitable for passive investors. Retail investors seeking energy exposure should consider publicly-traded energy stocks, master limited partnerships (MLPs), royalty trusts, energy mutual funds/ETFs, or managed mineral funds rather than direct property ownership through B2B marketplace.
Investors without oil & gas technical knowledge or operating experience
Successful acquisitions require understanding reserve engineering, production decline curves, drilling economics, field operations, regulatory requirements, and title complexities—buyers without industry background risk overpaying, missing critical due diligence issues, or struggling with post-closing operations. Working interests particularly unsuitable for inexperienced buyers given operational obligations.
Buyers requiring extensive due diligence periods or deal customization
Platform's typical ~35 days (company statement) timeline and auction format with standardized terms not suitable for complex acquisitions needing 90+ day diligence, extensive title work, environmental assessments, or bespoke deal structures with seller financing, earnouts, or contingent payments—bilateral negotiations provide flexibility that auction process cannot accommodate.
Investors seeking liquid investments or short-term capital deployment
Oil & gas properties are illiquid long-term investments with no guaranteed resale market—exit timing dependent on commodity markets and buyer appetite; attempting quick flips often results in discounted pricing. Properties should be evaluated as 5-15+ year holds with ongoing operational commitment. Not suitable for investors requiring liquidity or defined exit timelines.
ESG-focused institutions or investors with fossil fuel exclusions
Platform exclusively facilitates oil & gas asset transactions representing fossil fuel investments facing long-term demand uncertainty from energy transition—incompatible with ESG mandates, divestment commitments, net-zero targets, or climate-focused strategies. Investors seeking energy exposure with ESG alignment should pursue renewable energy, clean tech, or energy transition platforms.
Small investors unable to meet $10K-$100K+ minimum economic positions
While platform lists assets from $1,000+, most economically meaningful positions require $10K-$100K+ commitments for royalties or $100K-$10M+ for working interests—fractional mineral interests below $10K often generate negligible monthly income insufficient to justify ownership complexity; transaction costs, tax reporting burden, and operational involvement only justified for substantial positions.
AltStreet Perspective
Verdict
Legitimate B2B marketplace with 25+ year track record facilitating oil & gas transactions, but suitable only for industry participants with technical expertise and operational capabilities
Positioning
EnergyNet established leading position in upstream A&D marketplace since 1999 pioneering internet-based oil & gas auctions and scaling to 48K+ registered buyers, nearly $11B in reported transaction volume, and 45K+ properties sold across all major US basins. Platform's continuous 24/7/365 marketplace with weekly closes, comprehensive data rooms, and structured bidding mechanics addresses traditional A&D friction points while success-based commission model aligns platform incentives with seller outcomes (no fees if reserve not achieved). Notable client roster including majors (Chevron, ExxonMobil, Shell), government agencies (BLM, state land offices), and institutions (universities, banks, trusts) demonstrates market acceptance and execution credibility. However, platform fundamentally serves B2B niche for industry participants—not retail investment product accessible to typical investors. Key considerations: (1) Commodity exposure creates binary risk where asset values fluctuate 30-50%+ with oil/gas prices—buyers acquiring at cycle peaks face extended value recovery or permanent capital loss; (2) Reserve uncertainty means actual production may differ 20-40% from projections due to steeper decline curves, mechanical issues, or reservoir challenges—overoptimistic EUR estimates lead to overpayment; (3) Auction format with compressed ~35 days (company statement) timelines advantages sellers through competitive bidding but may disadvantage buyers through insufficient due diligence time and winners curse dynamics—aggressive bidders systematically overpay; (4) Success-based commissions eliminate seller upfront risk but create platform revenue dependence on closings—subtle pressure to encourage accepting bids versus waiting for optimal market conditions; (5) Nearly $11B aggregate volume disclosed but year-over-year trends, commodity cycle performance, and deal size distribution not transparent—activity likely concentrated in boom periods with material declines during downturns; (6) 48K+ registered buyers provides scale but registration does not equal active participation—actual competitive bidding on specific properties may involve much smaller number of serious participants; (7) 84% close rate indicates strong execution but 16% of listings fail to sell consuming seller time without proceeds—unsuccessful auctions may reflect unrealistic reserves or asset quality concerns. Suitable for: E&P companies acquiring bolt-on acreage in operating areas (operational synergies and infrastructure utilization), private equity firms with energy expertise deploying $10M-$250M+ (continuous deal flow and technical advisory support), regional operators expanding portfolios with $100K-$20M acquisitions (democratized access versus bilateral relationship-driven deals), royalty aggregators building passive income portfolios (diversification across basins and operators without operational obligations), high-net-worth individuals with industry background (former executives or operating partners leveraging platform for personal acquisitions). Not suitable for: Retail investors seeking passive energy exposure (should use energy stocks, MLPs, mutual funds, or ETFs instead), inexperienced buyers without technical knowledge (risk overpaying or missing critical issues), investors requiring liquidity or short hold periods (properties illiquid 5-15+ year holds), ESG-focused institutions with fossil fuel exclusions (incompatible with divestment mandates), buyers needing extensive due diligence or deal customization (compressed timelines and standardized terms limit flexibility). Platform's competitive positioning relies on first-mover advantages in online A&D marketplace, technology infrastructure enabling continuous auctions, extensive buyer network accumulated over 25+ years, and transaction advisory capabilities including engineering, geology, and land expertise. However, faces competition from traditional A&D brokers (Opportune, Petrie Partners, Enverus), bilateral negotiations between industry participants, and direct company-to-company outreach—platform must continuously demonstrate value versus alternatives. Best analyzed as specialized B2B marketplace for oil & gas acquisitions rather than investment platform—participants should be sophisticated industry buyers with technical evaluation capabilities, operational resources or partnerships, long-term capital, and realistic expectations about commodity volatility, reserve uncertainty, and illiquidity inherent to energy property ownership.
"Established B2B marketplace with 25+ year track record and nearly $11B in transactions; suitable for industry participants with expertise, not retail investors—requires understanding commodity risk, reserve uncertainty, and operational complexity."
Next Steps
Assess industry expertise and operational capabilities—successful participation requires oil & gas technical knowledge for property evaluation, understanding of reserve engineering and decline curves, operational resources for working interest management (or partnerships with operators), and experience with title, regulatory, and tax complexities; inexperienced buyers should pursue simpler energy exposure vehicles.
Determine acquisition strategy and target criteria—establish clear parameters for geographic focus (basins where have existing operations or knowledge), asset types (working interests vs royalties/minerals), deal size range, production vs development stage, operated vs non-operated preferences, and capital deployment constraints before browsing listings to avoid undisciplined bidding.
Register as buyer and complete qualification process—create account on energynet.com, provide financial institution verification for requested bid allowance (bank contact to confirm liquid funds), execute confidentiality agreements, confirm accredited investor status if applicable, establish relationship with platform representatives in target operating regions.
Monitor marketplace for target opportunities—platform operates continuously with 1,250+ annual transactions and weekly closes; review new listings matching criteria, analyze data room materials (production history, reserve reports, well files, operating agreements, title), conduct preliminary screening to identify properties warranting detailed evaluation.
Build internal evaluation capabilities—develop standardized screening models for rapid property assessment (decline curve analysis, cash flow forecasting, economic thresholds), maintain databases of comparable transactions and basin economics, establish relationships with third-party engineers/landmen for independent review, create bid authorization processes and limits.
Conduct accelerated but thorough due diligence—platform's compressed timelines require efficient review processes; prioritize high-risk areas (title, environmental, reserves, operator quality), use experienced consultants for complex properties, understand when to decline bidding if insufficient time for adequate evaluation, resist competitive pressure to bid beyond justified valuations.
Understand auction mechanics and bidding strategy—familiarize with platform's bidding interface, timing of closes, increment requirements, high bidder notification process, post-bid verification requirements (typically 2 business days to wire funds); develop discipline around maximum bids based on internal valuations regardless of competitive dynamics.
Review standard purchase agreements and legal framework—understand platform's terms including representations, warranties, indemnities, title requirements, closing procedures, dispute resolution; retain experienced oil & gas attorney for complex acquisitions; budget for title curative work post-closing; ensure adequate insurance (liability, pollution) for working interests.
Plan for post-closing operations and management—working interest acquisitions require ongoing involvement: operator relationships, revenue/expense monitoring, regulatory compliance, potential consent decisions on future drilling; royalty/mineral interests more passive but require revenue verification and tax reporting; establish internal processes before first acquisition.
Consider alternative approaches if platform not suitable—retail investors should use energy stocks, MLPs, energy mutual funds/ETFs for simpler exposure; buyers requiring extended due diligence or bespoke terms should pursue bilateral negotiations or traditional A&D brokers; investors seeking managed structures should explore royalty funds or PE energy vehicles; ESG-focused participants should consider renewable energy or energy transition platforms.
Related Resources
🔍Review Evidence
Scrape Date
2026-01-14
Methodology
Review synthesized from multiple source categories: (1) EnergyNet platform materials (energynet.com, efficientmarkets.com) including homepage, company background, services descriptions, and transaction statistics; (2) Third-party industry sources including Forbes coverage, Oil & Gas 360 articles, and industry association references; (3) LinkedIn company profile and business development activity; (4) Crunchbase company data and funding information. Analysis focuses on platform mechanics, transaction types, buyer/seller services, regulatory framework, market positioning, risk factors, and appropriate use cases. Platform operates as B2B marketplace for industry participants—review emphasizes distinction from retail investment platforms and unsuitability for typical investors lacking energy industry expertise.
Scope
Company history (founded 1999, pioneered internet oil & gas auctions), platform scale and transaction volumes, buyer network composition and qualification, asset types facilitated (working interests, royalties, minerals, leasehold), geographic coverage (Lower 48 US basins), transaction structures (auctions, sealed bids, negotiated sales, government leases), typical timelines and processes, fee structures and business model, seller advisory services (engineering, geology, marketing), buyer services (data rooms, verification, closing coordination), regulatory framework (broker-dealer registration, securities considerations), notable milestones and clients, subsidiary operations (Indigo Energy Advisors, Government Resources, Alternative Energy, Land & Real Estate), competitive positioning versus traditional A&D brokers, risk analysis for participants (commodity exposure, reserve uncertainty, operational complexity, liquidity constraints), appropriate use cases and unsuitable investor types.
Key Findings
- •PLATFORM-CONFIRMED: Founded 1999 in Amarillo, Texas as first server-based real-time internet oil & gas auction service (per company About Us page).
- •PLATFORM-CONFIRMED: Scale metrics per company materials as of January 2026: 48,000+ registered buyers with 8,200+ participating monthly and over $6 billion in aggregate registered funds ready to bid, $11B+ cumulative closed transactions, ~84% transaction success rate, 1,250+ transactions closing annually (per homepage and Why EnergyNet pages). Note: Platform pages report varying lifetime property counts; may reflect different definitions of 'property' unit.
- •PLATFORM-CONFIRMED: Transaction range from $1,000 (small mineral interests) to $250MM+ (large field packages), with expanded capability through Indigo Energy Advisors subsidiary for complex deals $20M-$250M+ (per FAQ and services pages).
- •PLATFORM-CONFIRMED: Asset types include producing working interests (operated/non-operated), overriding royalty interests, royalty interests, mineral rights, non-producing leasehold, full field packages, government lease sales (per services page).
- •PLATFORM-CONFIRMED: Success-based commission model with no upfront promotional fees, no penalties if reserve not met, sellers pay commission only on completed transactions (per FAQ and services pages).
- •PLATFORM-CONFIRMED: Typical transaction timeline ~35 days (company statement) from seller data package submission to proceeds distribution (per FAQ page).
- •PLATFORM-CONFIRMED: Notable sellers include Chevron, ExxonMobil, Apache, Shell, Total, Devon, Marathon, FDIC, State of North Dakota, Bank of America, Wells Fargo, Harvard University, Stanford University (per FAQ page).
- •PLATFORM-CONFIRMED: Operates through registered broker-dealer EnergyNet Securities LLC, FINRA member (per platform materials and regulatory structure).
- •PLATFORM-CONFIRMED: 45+ full-time upstream A&D professionals including engineers and geologists; offices in Houston, Amarillo, Dallas, Midland, Denver, Oklahoma City (per company description).
- •PLATFORM-CONFIRMED: Part of Efficient Markets holding company with subsidiaries: Indigo Energy Advisors, Government Resources, Alternative Energy, Land & Real Estate (per About Us page).
- •THIRD-PARTY REPORTED: Forbes Magazine (June 2016) declared EnergyNet has over 75% of online oil field auction market (per Why EnergyNet milestones).
- •THIRD-PARTY REPORTED: MPK Equity Partners became EnergyNet backer in March 2017 (per Why EnergyNet milestones).
- •THIRD-PARTY REPORTED: September 2018 sold 142 parcels for BLM New Mexico exceeding $987 million (per Why EnergyNet milestones).
- •THIRD-PARTY REPORTED: October 2021 Indigo Energy Advisors successfully transacted on $154MM Comstock Resources non-operated asset package (per Why EnergyNet milestones).
- •THIRD-PARTY REPORTED: Platform operates continuously 24/7/365 with due diligence and bidding available at all times, weekly auction closes (per multiple sources including FAQ and services pages).
Primary Source Pages
- energynet.com homepage (platform overview, scale statistics, buyer network)
- efficientmarkets.com/wiki/EnergyNet_Services (transaction types, processes)
- efficientmarkets.com/wiki/FAQ (seller/buyer questions, mechanics)
- efficientmarkets.com/wiki/Why_EnergyNet (competitive advantages, milestones)
- energynet.com/page/About_Us (company history, subsidiary structure)
- LinkedIn EnergyNet company profile (business description, recent activity)
- Forbes coverage (2016 article on online oil field auction market share)
- Oil & Gas 360 article (22-year anniversary coverage, 2021)
- Crunchbase EnergyNet profile (company data, funding)
Frequently Asked Questions
What is EnergyNet and who can use it?
EnergyNet is B2B marketplace facilitating oil & gas asset transactions between industry participants—E&P companies, operators, institutions, high-net-worth individuals with energy expertise. Platform connects sellers (companies, governments, mineral owners) with qualified buyers through continuous auctions, sealed bids, and negotiated sales. NOT retail investment platform—requires industry knowledge, operational capabilities, and substantial capital ($1K-$250M+ range). Founded 1999, registered broker-dealer, nearly $11B in reported transactions.
What types of oil & gas assets can be bought/sold on EnergyNet?
Platform facilitates: producing working interests (operated/non-operated), overriding royalty interests (ORRI), royalty interests, mineral rights, non-producing leasehold, full field packages, government lease sales. Transaction range $1,000 (small mineral interests) to $250M+ (large packages). Geographic focus: Lower 48 US across all major basins—Permian, Eagle Ford, SCOOP/STACK, DJ Basin, Bakken, Appalachia, others. Indigo Energy Advisors subsidiary serves complex deals $20M-$250M+.
How does EnergyNet's auction process work?
Continuous 24/7/365 marketplace with weekly closes. Sellers submit data packages; platform creates data rooms and markets to 48K+ registered buyers. Buyers conduct due diligence, submit bids before deadline. High bidder wins if reserve price met; has 2 business days to wire funds. Typical timeline ~35 days (company statement) from submission to proceeds distribution. Success-based commissions—sellers pay only on completed transactions, no fees if reserve not achieved.
What are EnergyNet's fees and costs?
Success-based commission model: sellers pay commission only on completed transactions, no upfront promotional fees, no penalties if reserve not met. Specific commission percentages not publicly disclosed but described as competitive with traditional A&D brokerage. No buyer transaction fees—buyers pay purchase price plus typical closing costs (title, legal, recording). Commission structure aligns platform revenue with transaction completion but specific rates and sliding scales by deal size not transparent.
How long does it take to complete a transaction?
Platform describes typical timeline of ~35 days (company statement) from seller data package submission to proceeds distribution. Includes: data room preparation, buyer marketing campaign (2-3 weeks bidding period), high bidder verification (2 business days to wire funds), title review, closing coordination. Timeline may extend for larger or more complex transactions requiring additional due diligence, title curative work, or multi-party coordination. Compressed versus traditional bilateral negotiations (60-90+ days).
What are the main risks of buying oil & gas properties?
Commodity price volatility (asset values fluctuate 30-50%+ with oil/gas prices), reserve uncertainty (actual production may differ 20-40% from projections), operator performance risk for non-operated interests, title defects and ownership disputes, environmental/P&A liabilities, compressed due diligence timelines, illiquidity (5-15+ year holds), winners curse from competitive bidding. Requires industry expertise for technical evaluation and operational management post-closing. Not suitable for inexperienced buyers or those seeking liquid investments.
Who are EnergyNet's typical buyers and sellers?
Buyers: publicly-traded E&P companies, private equity firms, regional operators, royalty aggregators, institutions, high-net-worth individuals with energy background. Sellers include: major oil companies (Chevron, ExxonMobil, Shell), banks/trusts, government agencies (BLM, state land offices), foundations/universities, individuals/estates. Platform reports 48K+ registered buyers though actual active participants on specific transactions likely smaller subset. Buyer qualification includes financial verification and accredited investor status confirmation for applicable offerings.
Is EnergyNet suitable for retail investors or beginners?
No—platform is B2B marketplace for industry participants, not retail investment product. Requires oil & gas technical expertise (reserve engineering, decline curves, field operations), operational capabilities or partnerships, substantial capital ($10K-$100K+ minimum economic positions), and long-term hold tolerance (5-15+ years). Retail investors seeking energy exposure should use energy stocks, MLPs, mutual funds/ETFs instead. Direct property ownership unsuitable for inexperienced buyers lacking industry knowledge or operational resources.
What due diligence materials does EnergyNet provide?
Platform prepares comprehensive data rooms: production history and decline curves, reserve reports and type curves, well files and completion data, lease/title information, operating agreements, revenue/expense statements, area maps and well locations, regulatory filings, development plans and upside cases. Materials typically available in bilateral transactions but compressed auction timeline (~35 days (company statement)) limits extensive follow-up versus traditional negotiations. Buyers responsible for own independent technical, legal, and financial review despite data room access.
How does EnergyNet compare to traditional A&D brokers?
Platform advantages: continuous marketplace with 1,250+ annual transactions (versus episodic brokered deals), 48K+ buyer network providing broad market reach, technology infrastructure enabling 24/7 access and efficient processes, success-based fees (no upfront costs or penalties if reserve not met). Tradeoffs: compressed timelines limit due diligence versus bilateral negotiations, standardized terms reduce customization flexibility, auction dynamics create winners curse risk, platform commission structure (though competitive with traditional brokerage 1-3% fees). Best for routine transactions; complex deals may benefit from traditional brokers.