Energy Valuation Insights

A weekly update on issues important to the Energy industry

Held (or Held Up?) by Production

Depending on which side of an oil and gas negotiation one is on, Held By Production (HBP) provisions can be a favorable, or unfavorable, value contributor. We discuss the concept and provide helpful information for mineral owners to consider.

How to Value your Exploration and Production Company

We recently published a white paper explaining how to value an E&P company. The purpose of the paper is to provide an informative overview regarding the valuation of exploration and production (E&P) companies operating in the oil and gas industry.

How Do Post-Production Deductions Affect the Value of Your Oil and Gas Royalty Interest?

From the first Board Meeting to the last session of the conference, post-production deductions were discussed in great detail at the NARO National Convention.  Why were these deductions brought up time and time again? Because post-production deductions affect the value of a mineral owner’s interest yet the regulations surrounding them is somewhat unclear and exists mainly on a contractual basis.

How to Use Reserve Reports When Determining Fair Market Value

Last week, we analyzed the SEC’s $6.2 million settlement with a Big 4 audit firm relating to auditing failures associated with Miller Energy Resources, an oil and gas company with activities in the Appalachian region of Tennessee and in Alaska. The SEC order determines that the Big 4 audit firm did not properly use the reserve reports conclusion of PV-10 (present value at 10%).  This post considers the proper use of reserve reports and risk adjustment factors when determining fair market value.

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