#333 What to Ask Before You Invest in an Oil and Gas Deal ft. Troy Eckard of Eckard Enterprises
In this episode, Peter sits down with Troy Eckard, a four-decade veteran of oil and gas, to answer the question most physicians never think to ask before writing a check into this space, how do you actually tell a legitimate operator from one that isn’t. Troy breaks down the real mechanics behind mineral rights and working interest, why this might be one of the best buying windows in years, and the exact red flags that should make anyone walk away immediately.
If oil and gas has always felt like a black box, this episode is less about whether to invest and more about how to protect yourself if you do. Tune in!
Eckard Enterprises brings this episode to you.
Eckard Enterprises, LLC, is a family-owned and operated alternative investment and asset management firm, specializing in mineral rights and the U.S. energy industry. Eckard believes that owning tangible assets is one of the safest, long-term investment strategies available in today’s investment climate.
Learn more about Eckard Enterprises!
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Episode Highlights
Now, let’s look at what we discussed in this episode:
- A Live Look at the War Nobody Predicted
- The Buyer’s Market Most People Are Missing
- The Actual Mechanics of Getting Paid
- The Questions That Actually Separate Good Operators From Bad Ones
- Where Oil and Gas Fits Alongside Everything Else
Here’s a breakdown of how this episode unfolds.
Episode Breakdown
A Live Look at the War Nobody Predicted
Peter introduces Troy Eckard, someone he consistently turns to for information on the economy, oil and gas, and now the Iran conflict specifically. Troy’s background speaks for itself, over $1.2 billion placed across mineral rights, working interests, and pipeline investments since 2019, with more than 10,000 wells under management today.
Troy opens with sharp criticism of how the media is covering the war, arguing that most outlets either don’t understand the oil and gas fundamentals or are deliberately softening bad news ahead of the midterms. He points to specifics most headlines miss, Russia’s refinery capacity down 35 percent and Qatar losing 96 percent of its LNG conversion capacity to drone strikes, numbers that matter more than the Strait of Hormuz talk dominating the news cycle.
He connects all of this to what it means at the pump and beyond, gasoline sitting at $4.14 a gallon nationally and diesel near record highs, with the real bottleneck being refining capacity rather than crude supply itself, since no new refinery has been built in the US since 1977.
The Buyer’s Market Most People Are Missing
Peter asks Troy directly whether this is a good time for physicians to get into oil and gas, or whether the window has already closed. Troy’s answer is that this year has actually produced some of the best asset prices in years, since trillions of dollars in capital have poured into AI and data centers instead, leaving oil and gas starved for investment and sellers willing to offload assets 25 percent cheaper than the past three years.
He explains the pricing gap using strip pricing, where traders are valuing future oil cash flow around $71 a barrel even while spot prices sit closer to $92. That difference means sellers aren’t capturing today’s headline price, and buyers with cash ready to move are picking up assets at a real discount.
Troy also describes the current investor mindset as a mix of pain and gain, shaped by past bad investments and high taxes on one side, and a genuine desire for returns on the other. He notes that some private equity funds hitting the end of their standard seven year terms are being forced to sell regardless of conditions, which is creating real opportunities for buyers who are ready.
The Actual Mechanics of Getting Paid
Troy breaks down exactly how physician investors make money in this space, starting with mineral rights, which he compares to owning land without wanting to build anything on it, simply collecting a royalty on whatever gets produced. He also explains working interest and drilling investments, tied to a 1986 IRS incentive that allows investors to write off 70 to 80 percent of every dollar invested to encourage domestic drilling.
He’s careful to frame this correctly, calling it a tax deferral rather than a tax write-off, since the real goal is reducing taxable income now while building wells that generate income later, with roughly 15 percent of future income remaining untaxed. He’s upfront that horizontal drilling technology has made dry holes exceedingly rare for operators who actually know what they’re doing.
Troy also names the problem directly, describing operators who exist purely to chase the tax headline without any real intention of drilling a functioning well. This sets up the rest of the conversation, which shifts from how the mechanics work to how you tell a legitimate operator from one that isn’t.
The Questions That Actually Separate Good Operators From Bad Ones
This is where the episode earns its title. Peter asks Troy directly what should make someone immediately walk away from an oil and gas opportunity. Troy’s first answer is track record, insisting that any legitimate operator should be able to show exactly what they’ve done with other people’s money before, in writing, money in and money out over time.
His second test is whether the operator is actually willing to explain how the investment works, rather than just asking for a check. He compares this to trusting a surgeon or a lawyer, where confidence in your own track record means you’re not afraid to walk someone through your process. He shares a specific story about being asked for an AFE, the itemized cost breakdown for drilling a well, and how a prospective client once claimed no other operator had ever requested one, a claim Troy calls flatly dishonest.
He drives the point home by noting that most operators in this space don’t even have their own geologists or engineers, meaning there’s often nothing behind the curtain once you actually ask for real documentation. His advice boils down to two non negotiables before writing any check, verified track record and genuine transparency about how the money actually works.
Where Oil and Gas Fits Alongside Everything Else
Troy shifts into how oil and gas functions as a counterbalance inside a broader portfolio, particularly against real estate. When interest rates rise and hurt cap rates, he explains, having a smaller allocation in oil and gas can offset that weakness, and some investors even use 1031 exchanges to move directly from real estate into energy assets.
He shares the scale of what Eckard Enterprises has raised this year, $1.75 billion so far with $2 billion expected by December, and roughly $68 million already distributed back to investors with more on the way before year end. Troy is candid that trust is the hardest thing to earn in this industry, and that most physicians he talks to walk in skeptical, which he says is exactly the right instinct until an operator proves otherwise.
Peter closes by pointing listeners toward Eckard Enterprises directly and Troy’s app, Eckerd Insights, which lets people explore information without committing to anything or handing over financial details upfront. The two confirm they’ll see each other in person at PIMDCON.
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