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Marc Lichtenfeld’s “Ultimate Passive Income Play”

Marc Lichtenfeld’s “Ultimate Passive Income Play”

January 20, 2024 by Theodor

Marc Lichtenfeld says regular investors are being left out of a huge income opportunity.

The average return on this unusual class of investments was 196% last year and there's one “Ultimate Passive Income Play” we can buy today to duplicate this success.

 

The Teaser

This teaser is all about an unusual way to potentially bank massive income from the oil and gas sector that is 100% outside the stock market.

Source: oxfordclub.com

Marc Lichtenfeld is the Oxford Club's Chief Income Strategist, meaning he specializes in ways to make passive income. We have previously revealed his #1 “IRM” play for the Housing Crisis and given you our complete take on his Oxford Income Letter advisory.

Today, Marc says he's going to show us two things:

  1. Collect monthly income over and over again
  2. Bank huge capital gains

Sounds nice doesn't it?

He confides that because of a series of macroeconomic events, the oil and gas sector is certain to go much, much higher in the year ahead.

Upon hearing this, I had to check the date on this teaser and the original version came out last year, as I suspected.

Regardless of this, JP Morgan says “As a result of robust global oil demand and tight supply, we could be entering the next wave of the energy super cycle.”

But Marc isn't recommending we go out and buy Chevron, Shell, and Exxon.

Because he's found an alternative investment with far more upside potential and, more importantly, less risk.

Not Oil Futures or Anything Complicated

Marc continues by saying that without a doubt, this is the most promising oil and gas opportunity he's ever seen and it’s not a stock, bond, private company, options, futures, or anything complicated.

That's a relief.

So what exactly is Marc talking about here?

Apparently, during 2022, the worst year for the markets since 2008, this virtually unknown oil investment returned 149%!

Source: oxfordclub.com

It was the only bright spot in a market that fell more than a kid without training wheels.

Best of all, it takes just $25 to get in on this little-known oil strategy.

If you said oil and gas royalties you'd be right and it is the most lucrative way to rake in huge income from the oil and gas surge.

 

The Pitch

All the details on one specific royalty income trust are included in Marc's newest special report, called “The #1 Oil and Gas Royalty for Huge Monthly Income.”

Source: oxfordclub.com

The report is ours if we give The Oxford Income Letter investment advisory a risk-free try. Normally, Marc charges $249 for 12 months of the newsletter, but for a limited time, we can get the first 12 months for just $49.

Included in the offer is a slew of bonuses, like an income investing video series, access to experts in collectibles, real estate, tax law, insurance, and more, as well as weekly updates answering readers’ most pressing questions every week.

 

The Perfect Business

Traditional oil and gas companies make a lot of money.

The world's five largest listed oil companies paid investors a record $100 billion in dividends in 2023.

But they also spend a lot of money to make their money and use a lot of debt to do it.

For example, drill rigs cost between $20 million and $1 billion to build. Then you have to run them. Deep-water drill rigs can cost almost $400,000 per day to operate.

Then there are the costs of labor, insurance, and all the expensive equipment it takes to explore and produce oil.

The point is, that the entire process of exploring, extracting, and refining liquid gold costs hundreds of millions, if not billions, of dollars.

But oil and gas royalty interests are a completely different story.

Spend Very Little Money to Make Money

Royalties give us all the growth of the oil and gas industry, without the operational risks and debt.

All we have to do is simply acquire a right to a portion of the income from some of America’s biggest and richest producing oil and gas fields, put our feet up, light a cigar, and watch the money start pouring in.

I can see why Warren Buffett once said:

Here is another way of looking at it.

ExxonMobil, the direct descendant of Rockefeller’s Standard Oil monopoly has paid dividends to its shareholders every year since 1882!

I had to double-check this for myself and it's true. The oil major has the third-longest consecutive payout streak in America.

A $1,000 investment into Exxon stock in 2000 is now worth more than $5,800 with reinvested dividends, a gain of about 500%.

A good return by any standard.

However, it doesn't compare with owning a little-known oil and gas royalty stream.

A $1,000 investment in this little-known royalty stream in 2000 is worth more than $48,000 today with dividends reinvested.

A whopping 4,765% return on your money.

It's 10 times more profitable than owning Exxon over the same period, let's find out what it is.

 

Revealing Marc Lichtenfeld’s “Ultimate Passive Income Play”

We get a few clues about this oil and gas royalty trust:

  • It lets us collect royalties from more than 2 million oil-rich acres in Texas, Oklahoma, and Louisiana.
  • Since 2000, it has doled out more than 276 consecutive monthly royalty checks.
  • We can buy it for less than $25.

Based on this info, Marc is teasing Permian Basin Royalty Trust (NYSE: PBT) here. This is why I'm so sure:

  • PBT owns a 95% net overriding royalty interest in major producing royalty properties in Texas, per its awesome 90s-style HTML website.
  • The trust has an uninterrupted monthly dividend history dating back to December 1992.
  • Units are currently trading for just under $15, down from the $25 range they were at last year when this teaser was originally published.

 

One of the Greatest Income Opportunities in the Market?

Longtime readers already know what I'm about to say.

PBT ticks a lot of boxes on my list:

  • A long history of consistent performance.
  • Operating in an essential industry that provides a product we cannot live without.
  • Limited exposure to operational and financial risks.

Couple all of this with an 8.7% forward yield and you get a cash-flowing investment with very little downside.

The only downside is that the trust's assets will eventually, at some point in the very distant future, stop producing oil and it will dissolve at that point.

Until that time comes, I will gladly take a dollar today over two dollars in the future, which may not materialize.

 

Quick Recap & Conclusion

  • Marc Lichtenfeld is teasing an “Ultimate Passive Income Play” in an unusual class of investments which returned 196% last year.
  • We learn that Marc isn't talking about a stock, bond, private company, options, futures, or anything complicated. Instead, he's referring to Royalty Income Trusts, and one oil and gas royalty trust, in particular, is pumping out consistent monthly income.
  • All the details on this royalty trust are included in Marc's newest special report, called “The #1 Oil and Gas Royalty for Huge Monthly Income.” We will need a subscription to The Oxford Income Letter investment advisory to get our hands on the report, which costs only $49 for a limited time.
  • We were able to reveal Marc's pick for free as Permian Basin Royalty Trust (NYSE: PBT), which he has been promoting heavily since last year.
  • There's a lot to like about PBT – exposure to an increasingly valuable commodity, consistent monthly income, and no operational risk. Two thumbs way up.

Are Royalty Income Trusts a component of your portfolio? Let us know in the comments section.

Theodor


Theodor is an old school value guy, when he's not looking for great companies and great prices you can find him on the basketball court hooping.

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