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Investor Relations

Water people. Solving water problems for E&P operators across the Permian Basin and Eagle Ford Shale.

Partner & investor resources

AFE & tax information

Answers to the questions partners and investors ask most often. Start with the basics here, and reach out to our team for anything specific to your investment.

Permanent solutions for complex waste

Milestone operates a growing network of advanced, regulated, and permitted facilities, where the company processes and permanently disposes of a broad range of complex waste streams, protecting businesses from environmental liability for the long term.

Our patented, advanced injection technology permanently sequesters waste thousands of feet underground, preventing greenhouse gas emissions and water and ground contamination.

What is an AFE?

An Authorization for Expenditure (AFE) is a document that lays out the estimated cost of a project before the work begins. It gives partners a clear budget to review and approve, so everyone agrees on scope and spending up front.

On NEC Operating water infrastructure projects, such as pipelines, disposal wells and storage facilities, the AFE sets the budget partners agree to before construction or acquisition starts.

Scope & estimate

We define the work and prepare an itemized cost estimate for the project.

Review & approval

Partners review the AFE and elect to participate by approving it.

Funding

Approved costs are funded according to each partner’s share of the project.

Tracking & updates

Actual spending is tracked against the estimate. A supplemental AFE may be issued if costs are expected to change materially.

Tax-related information

A general guide to what investors can typically expect at tax time. Every situation is different, so please confirm details with your own tax advisor.

What is a Schedule K-1?

If you invest through a partnership or an LLC taxed as a partnership, you generally receive a Schedule K-1 instead of a 1099. It reports your share of the entity’s income, deductions and credits for the tax year, and you use it when preparing your own return.

When should I expect my K-1?

K-1s are prepared after the entity’s books are closed and its tax return is drafted, so they often arrive later than other tax forms. Extensions are common for partnerships, which can move delivery past the usual filing dates, so you may want to plan for an extension on your own return. We share our expected K-1 timeline with investors each year.

What tax items might I see?

Depending on your investment, items may include:

Ordinary income or loss
Depreciation and depletion deductions
Other credits or deductions passed through to you
State filing requirements where we operate

General disclosures

Investments in oil, gas and related infrastructure involve risk, and tax treatment depends on each investor’s circumstances. Information on this page is general and is not an offer to sell securities, or tax, legal or investment advice.

Who do I contact with questions?

Our team can help with K-1 delivery, AFE status and general process questions. For advice on how these items affect your personal taxes, please speak with your CPA or tax professional.

For specific project financials and K-1 documents, please log in to your secure partner portal

Please note: This section provides general information only. Specific AFE documents, project financials and investor data are shared directly with partners and are not published on this website.