Financial Reporting Valuation, Oil & Gas

December 28, 2021

Mercer Capital's 2021 Energy Purchase Price Allocation Study

In Case You Missed It

Did you miss Mercer Capital's 2021 Energy Purchase Price Allocation Study? If you did, before we move into 2022, take a look at the 2021 Study.

This study researches and observes publicly available purchase price allocation data for three sub-sectors of the energy industry: (i) exploration & production; (ii) oilfield services; and (iii) midstream and downstream.  This study is unlike any other in terms of energy industry specificity and depth.

The 2021 Energy Purchase Price Allocation Study provides a detailed analysis and overview of valuation and accounting trends in these sub-sectors of the energy space.  This study also enables key users and preparers of financial statements to better understand the asset mix, valuation methods, and useful life trends in the energy space as they pertain to business combinations under ASC 805 and GAAP fair value standards under ASC 820.  We utilized transactions that closed and reported their purchase allocation data in calendar year 2020.

This study is a useful tool for management teams, investors, auditors, and even insurance underwriters as market participants grapple with ever-increasing market complexity.  It provides data and analytics for readers seeking to understand undergirding economics and deal rationale for individual transactions.  The study also assists in risk assessment and underwriting of assets involved in these sectors. Further, it helps readers to better comprehend financial statement impacts of business combinations.

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