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Freedom Checks Come from Energy and Mineral Wealth

April 7, 2018 - Author: steph - No Comments

As a trained geologist, Matt Badiali discovered he understood the business prospects of energy and natural resource companies far better than the suits with Masters in Business Administration sitting in cubicles in Wall Street skyscrapers. He had the Bachelor of Science degree in earth science from Penn State University and the Master of science in geology from Florida Atlantic University. He soon learned investors needed his technical skills, and would pay him well to separate the promising natural resource companies from the fakes, and would pay him well to analyze their business prospects. Visit to know more about Freedom Checks.

That’s how he discovered Freedom Checks. They come from natural resource companies called master limited partnerships. In exchange for producing, refining, storing and transporting energy and sending at least 90% of their profits to their partners, the federal government exempts them from paying income taxes as corporations must. That’s a good deal for the companies and for their partners. And the government gets a more active, more incentivized energy sector to make sure the energy shocks of the 1970s never happen again.

The first energy shock or oil crisis occurred in 1973. The Organization of Arab Petroleum Exporting Countries deliberating caused that shock to punish the United States for supporting Israel in the Yom Kippur War. The second oil shock occurred in 1979. The Iranian Revolution deposed the Shah of Iran and installed the Ayatollah Komeini as the country’s executive head. The country’s oil production fell during this period because strikes and protests against the Shah sought to overthrow him as the country’s ruler. Also, foreign oil workers left the country in fear of their lives. The country’s production fell from 6 million barrels a day to 1.5 million barrels.

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This reduced the world’s supply of oil by just about 4%, but the world reacted as though the number were higher, sending the world price of oil to $39.50, double the previous amount. This shock motivated Congress to seek ways to motivate energy companies to find and develop sources of energy within the United States so it would not be vulnerable to international events. This eventually led to the establishment of Freedom Checks.

Matt Badiali loves to analyze the master limited partnerships as well as conventional corporations working in the energy and natural resources sectors. But only the partnerships send out such generous Freedom Checks to their investors. Corporations must pay income taxes to the government, and so have lower net profits leftover. Watch this video at Youtube.

Categories: Trading

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