IKE Energy - Interest Owner Resource Center

Interest Owner Resource Center

Discover answers to Frequently Asked Questions about royalties, check and payment details. Find updates and other announcements here.

» Questions about 2023 Taxes / IRS Form 1099-MISCs? Please click here for the latest.

If you received a royalty check or payment from us during the year 2023, you will receive an IRS Form 1099-MISC this year.

Per IRS Requirements for this year, IRS Form 1099s-MISCs for the 2023 Tax Year will be mailed before or on January 31st, 2024. Your IRS Form 1099-MISC will be mailed to the address we have on file. You should receive your IRS Form 1099-MISC within one day to two weeks of mailing at the latest, depending on USPS delivery delays. If you need a digital copy before this date, please email us with your owner number and the last four digits of your Tax ID and we will email you a digital copy of your 2023 1099-MISC with your Tax ID obscured for your protection.

The total amount shown on your IRS Form 1099-MISC is based on any payments issued by us during the tax year. This amount will not include royalties paid for prior production sale dates on checks issued after December 31st, 2023. Any royalty disbursement checks issued by us during 2024, regardless of production sale dates will be reported on the 2024 Tax Year 1099-MISC issued in early 2025, per IRS requirements.

» Will I receive an IRS Form 1099 every year?

If you did not receive a payment check during the past year, you will not receive an IRS Form 1099-MISC for the past year. Royalty owners who received $10 or more and working interest owners who received $600 or more in the calendar year will receive a 1099. We mail all 1099s on or about January 31 of the following year. The income reported to the IRS is your gross income prior to any other deductions or taxes. The 1099 will also list any state or federal backup withholding amounts deducted from your revenue checks. The 1099 can also be used to report state income tax.

» Will I have to pay taxes on the revenue I receive?

Yes. Royalty interest owners receiving more than $10, and working interest owners receiving $600 or more annually will receive an IRS Form 1099-Misc by January 31 of the following year. The income reported to the IRS is your gross income prior to any other deductions or taxes. The 1099 will also list any state or U.S. withholding amounts deducted from your revenue checks. You may also receive an annual property tax bill (Ad Valorem Tax) from the county (or parish) in which your well(s) are located.

» Can I request for IKE Energy to withhold taxes from my check?

No. You will receive an IRS Form 1099 at the end of the year to review with your tax preparer.

» I just received a Division Order Form from IKE Energy, what is it for? Is it required?

A division order is a legal document in the oil and gas industry that confirms ownership of production from a specific well and authorizes the company to pay royalties to the rightful owner based on their royalty share. The form specifies who owns what percentage of the oil and gas produced from a particular well. This information is crucial for ensuring that royalty payments are distributed correctly to the rightful owners.

Division Order Form requirements vary by state. Below are requirements for states we currently operate in:

Kansas: a division order form is required. For all properties located in Kansas, you may alternatively use any published Model Division Order Form.

Montana: a division order form is required. For all properties located in Montana, as defined by state law, you may alternatively use a statutory form that contains certain required information. See Montana § 82-10-110.

Oklahoma: a division order form is required. For all properties located in Oklahoma, you may alternatively use any Model Division Order Form, provided that the form contains all required information as outlined per state statute. Oklahoma state statute requires that a Division Order form shall warrant in writing the division of interest (decimal interest number) and the name, address and tax identification number of each interest owner with a provision requiring notice of change of ownership. See 52 Oklahoma Statute § 570.11.

Texas: a division order form is required. For all properties located in Texas, as defined by state statute, you may alternatively use a statutory form that contains certain required information. See Texas Natural Resources Code § 91.402 for a copy.

To satisfy title requirements and be approved, any alternative division order form allowed by state law must also match the exact interest owner name and identity, decimal interest, property number, property name, and legal description as shown on the division order form we provided to you that you are electing to use an alternative form as a replacement for. The Model Division Order Form published by the National Association of Division Order Analysts meets the minimum requirements of most states.

» How can I change my mailing address?

It is very important that you keep us informed of an address change. A correct address on file will allow you to receive future IKE Energy mailings and 1099 tax information. You may email the Change of Address form to mail@ike.energy or mail to the address listed below.

IKE ENERGY
Attn: Owner Relations Department
3910 West 6th Avenue #282
Stillwater, OK 74074

All change requests MUST include your owner number, name, old address, new address, last 4 digits of your social security/tax identification number and signature of the account holder. If the account with IKE Energy is a joint account, both account holders must sign the form.

» How do I report a change of ownership?

For specific instructions on how to transfer ownership, please review the instructions for change of ownership below.

Instructions for change of ownership (conveyance)

If the change in ownership is because the interest owner has passed away, you will need to furnish us with the proper documentation that outlines the disposition of the ownership of the deceased party. If the estate is being probated, please follow the instructions below outlined in the link for probated will. If there is no last will and testament or the will is not being probated, please follow the instructions noted for completing an affidavit of heirship. See below for instructions and document forms.

Instructions for change of ownership after owner's death (Probated Will)

Instructions for change of Ownership after owner's death (Affidavit of Heirship)

Affidavit of Heirship Form

» Can I have my royalty check direct deposited to my bank account?

At this time IKE Energy doesn't offer direct deposit, however this is something we plan on offering in the future. Please check back here for updates.

» When does IKE Energy issue royalty checks?

Revenue checks are issued automatically at the end of each month if the accumulative revenue on your account exceeds a minimum payout threshold. You can always contact us and request a manual payout, certain limits may apply for smaller amounts, depending on state regulations.

» Will the amount of my royalty check vary?

Yes. Many factors contribute to your payment, such as market conditions, fluctuating commodity prices, regulatory or contractual changes and production volumes.

» Why am I not getting paid for the current month of production?

Natural gas and oil revenues are generally paid one to three months after the actual production date, in accordance with state regulations and lease terms.

» I didn't receive my regular check, can royalty checks stop being issued to me?

Yes. You will generally not receive a statement or notice if the well(s) you are paid from are shut in or had no production sales during a certain month. Royalty payments are dependent on production from wells. The well(s) you are paid from may be shut down for maintenance or may stop producing. There is no guarantee on the life of a well or the amount or frequency of revenue payments

» Can the revenue paid to me be adjusted after the check has been issued?

Yes. Royalty accounts are subject to adjustment, either upward or downward. Adjustments on your check detail can be identified by a positive and negative entry listed under the "Your Net" column on your revenue check. The negative entry will indicate what was previously paid to you on a prior royalty check. The positive entry right above it will indicate the amount that should have been paid to you. The difference is the adjustment to you for that specific production month. There are many factors that may result in a prior period adjustment, such as:

Revised production statements from the property operator
Revised plant statements from a plant operator
Corrected data received after an unexpected operational change (often due to a mechanical failure that interrupts normal operations or a major weather event)
Revised pricing information from third parties
Revised allocation statements or pricing information due to audit findings
Accounting errors
Retroactive tax incentives provided by government authorities

A discrepancy may be identified several years after the original accounting for a given production month, and because many parties have input into the accounting process, there may be multiple revisions over any period of time.

» Will I be notified of adjustments to my check or if revenue is going to stop?

You will generally not be notified of adjustments or a stop in payment; however, there are some exceptions.

» How is the pricing of oil, gas and other minerals determined?

Crude oil, natural gas and most minerals are commodities, and their value is subject to daily swings in the marketplace. IKE Energy continually negotiates to get the most favorable prices possible.

» There are Taxes and/or Deductions shown on my statement, what are they?

Taxes listed on the gas check statement are not state or federal personal tax withholding. These taxes are gross production taxes paid directly by the purchaser we sell to and these amounts are not received or withheld by us and as such they are not directly disbursed to you by us, but are required by law to be on the statement for transparency. On the check statement, the tax column is the total of any gross production taxes on the sale. The owner tax column is the amount that the tax affected your royalty payment based on your royalty decimal interest. Any amounts shown on the deductions column are deduction charges or fees taken by the purchaser and are not deductions taken by IKE Energy.

» My question isn't answered above, how can I contact the Owner Relations Department?

Please email us at the following address: mail@ike.energy When inquiring, please reference your owner number or the well/lease your interest is related to.