Mission Statement
The mission of TM Squared, Inc. is to find quality prospects for its core business and partners. We are an independent oil & gas company. We look to develop our prospects in an environmentally friendly and economical way to benefit our investors and partnerships. At TM Squared, Inc. we believe in Teamwork, Integrity & Honesty.
TM Squared, Inc. is an independent oil and gas exploration and production company that was established in July of 1996 by W.A. (Andy) Westmoreland. Andy has over 25 years of experience in the oil and gas business.
About Us
TM Squared, Inc. identifies quality operators with proven track records and works with accredited investors to source capital necessary to develop those projects. With over two decades of experience in the oil and gas market, Mr. Westmoreland has identified a number of quality operators and oil and gas projects. Additionally, recent price fluctuations have caused remarkable declines in development costs, creating some attractive conventional opportunities in a market previously overlooked in the wake of unconventional development.
TM Squared, Inc. targets the following criteria when reviewing oil and gas projects:
- Quality, proven operator with development history.
- High economic returns using current strip pricing
- Opportunity for additional, unaccounted upside potential.
- Infrastructure in place.
Life Cycle of an Oil Well
Tax Advantages
Of Working Interest Participation
There are a number of significant tax advantages available to qualified investors who participate in Working Interest Projects. Under the current law, for example, drilling expenses and production income currently both offer excellent tax advantages with most partners getting to write off 100% against their ordinary income.
Please consult with a tax professional for information specific to your tax situation before making any investment decisions.
Key tax benefits include:
Intangible Drilling Costs (IDC) – IDCs are fully deductible in the year costs are incurred. As an alternative, each Partner may elect to amortize. Historically, 70% to 80% of GCW’s Drill and Test Capital Contributions have been treated as IDCs.
Intangible Completion Costs (ICC) – are fully deductible in the year costs are incurred.
Lease & Well Equipment Depreciation (L&W) – L&W equipment costs are fully depreciated over 5 to 7 years depending on equipment type.
Organizational Costs – These include legal and professional fees to organize and commence operations of a venture. These fees can be amortized over 5 years.
Prospect Costs – These costs can be depleted and amortized over 24 months.
Syndication Costs – Syndication costs must be capitalized and can only be written off as a capital loss upon termination of a venture.
Lease Operating Expenses – Lease Operating Expenses begin once a well is in production. Expenses are netted against production revenue and are 100% deductible.
Depletion Allowance – There is a tax deduction available for qualifying statutory depletion. Generally, 15% of the gross income from a producing well is tax-free subject to certain limitations.
Net Revenue From A Producing Well – Net revenue from a producing well is treated as operating income; it is not treated as passive activity, and is considered self-employment income (schedule C). The self-employment tax rate is 15.3%.
**Tax considerations vary depending on your personal tax situation. Please consult your tax advisor before making any oil and gas investment decision. Note that current law is subject to change.
The information contained on this website is neither intended nor written to be used, and cannot be used, by any person for the purpose of avoiding tax penalties that may be imposed on such person. Each potential partner should seek advice based on the taxpayer's particular circumstances from an independent tax advisor that is experienced in oil and gas taxation matters.