Treasures of the Earth Gifted to the Foundation — A Look into the Foundation’s Oil and Gas Assets

By September 18, 2017FMC Foundation

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SId J_FinalWEB“My goal is that they may be encouraged in heart and united in love, so that they may have the full riches of complete understanding, in order that they may know the mystery of God, namely, Christ, in whom are hidden all the treasures of wisdom and knowledge.

— Colossians 2:2-3

It is no secret to Texans that gas and oil royalties are highly coveted assets. So how did the Foundation come across the ownership interest of 742 wells in 43 different counties spread across four states in the South? The answer is a simple one. We’ve acquired all our precious assets through the generous gifts of donors throughout the years. Gifts come in many shapes and sizes. They also are acquired in a variety of ways. While these assets make up a smaller portion of our yearly income, they have still been a constant and mostly consistent source of income every year for the past 35 years.

A large portion of the oil and gas holdings came from a substantial donation through the Estate of Mr. A.J. and Mrs. Bess Broderick and the Estate of Mrs. Sidney Smith (mother of Bess Broderick). The remaining acquisitions came from the Estate of Etta M. Turpin and through the purchase of Scurry County, Texas, property in the Estate of Mr. Thomas E. Tilley. These donations occurred many years ago, but the benefits have continued to roll in annually. As the popular phrase goes, “they are the gifts that keep on giving.”

Most of our Foundation’s wells are in the State of Texas in 30 different counties across the northern half of the state. We also own wells in 10 counties in Mississippi, two counties in Arkansas, and one county in Oklahoma. Currently, there are active leases for these wells with 42 oil and gas companies. The Foundation staff maintains all the leases, tracking, and deposits of the oil and gas income in-house with the occasional consult of an oil and gas attorney.

The Foundation’s Board of Directors oversees all royalty portfolio activity and is directly responsible for all decisions made regarding leases. The Board of Directors along with the Foundation staff work diligently to ensure that these bountiful gifts are reaping maximum benefit and fulfilling their legacy potential in helping to directly impact our church.

How does the royalty income impact our church and how much profit does the Foundation make each year off these lasting gifts? All income received from oil and gas royalties is carefully monitored and processed by the Foundation staff each month. The money then goes straight into our investment portfolio and general corpus income so that its gains are magnified, but also so that a portion can be used more readily if needed by our church. Currently, the division is 50 percent of the income goes into the investment portfolio and 50 percent goes into income for immediate church assistance. So far this year, we are averaging about $52,000 to $54,000 each month. For the year 2016, we had a total revenue of $546,187 which is a significant boost to the funding we can provide to our church. There are so many different programs our church has that the Foundation assists with financially. This is just one additional source of income that can help our church flourish in programming for the congregation.

This blog serves as just a brief glimpse into the oil and gas aspect of the Foundation’s business. The Foundation and our church have been blessed with so many different types of monetary donations throughout the years. This is just one example of a gift that continues to serve in perpetuity. It’s a good reminder that gifts can come in a variety of forms, shapes, and sizes. Every gift, no matter the size or type, is valued by the Foundation and goes directly toward ensuring the Foundation’s support of our church.

We continue to strive toward providing as much communication with our church as possible regarding our gifts and how they are invested. The oil and gas royalties make up just a portion of our total portfolio. If you would like more information about our oil and gas holdings or how you can give to our Foundation, please contact us (817-336-5698 | fmc@fmcfoundation.org). We look forward to hearing from you. Every gift counts, big or small. They all go toward the ultimate goal of building a legacy of support for our church.

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