Energy Resources 12 Pauses Monthly Distributions

Despite reduced distributions, the firm remains optimistic and will prioritize resuming investor payments.

(Editor’s note: the original published version of this article on 7-15-25 incorrectly stated that Energy Resources 12 announced an asset sale and planned liquidation, among other errors. As of 7-21-25, this erroneous information has been removed, and the article has been updated with correct information. We apologize for any inconveniences this may have caused.)

July 15, 2025

Distributions on Hold, but Strategy Moves Forward

Energy Resources 12 has paused its monthly payouts—but not its long-term momentum. A temporary dip in oil and gas production, paired with softening commodity prices, prompted the firm to hold back distributions for now. But operations are still generating cash, and the focus has shifted to repaying debt and positioning for the next round of growth.

Where Energy 12 Stands Today

The firm holds non-operated interests in roughly 450 producing wells across North Dakota’s Bakken Shale, alongside hundreds of future drilling sites. Its partners include major names like ConocoPhillips, Hess, and EOG. Since launching in 2017, the program has delivered more than $12 per unit in total distributions—navigating volatile energy cycles without missing a single monthly payment.

To support future development, Energy 12 secured a $10 million credit facility in May 2024. That capital helped fund 26 new wells drilled and completed last year. As of year-end, about $6.4 million remains outstanding, backed by $156 million in net asset value.

Why the Pause—and What’s Next

Despite new activity, drilling hasn’t moved fast enough to offset natural declines. That’s why the board opted to pause distributions. While monthly payments are on hold, they’re not gone—unpaid amounts will continue to accrue at a 7% annualized rate. All accumulated amounts must be paid before final distributions under the limited partnership agreement.

Energy 12 isn’t standing still. The plan is to use current cash flow to reduce debt and continue funding new wells. Management remains focused on reactivating distributions and sees upside ahead for the portfolio. As field activity ramps back up and pricing stabilizes, the partnership expects to restart monthly payments and continue delivering long-term value.