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Valuation Oil & Gas

Opportune LLP

Total Shareholder Return Plans: Accounting Implications & Valuation Assumptions

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In a competitive talent market, companies are reevaluating executive compensation packages to attract and retain top leadership. Compensation generally includes a base level of compensation combined with some form of...more

Morgan Lewis

Delaware Bankruptcy Court Ruling on $7.2B Claim Affects Fraudulent Transfer Defense, Valuation Litigation

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In a decision likely to have a knock-on effect for future fraudulent transfer defense and valuation litigation, the Delaware bankruptcy court recently ruled that the price agreed in the sale of an oil and gas company closed...more

Houston Harbaugh, P.C.

Can "Free Gas" Clauses Refute the Artificial Wellhead Value Suggested by Drillers?

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An oil and gas lease with a “free gas” clause may be a valuable tool for landowners to push back against drillers’ inaccurate attempts to value gas at the “wellhead”. Prior to the advent of Marcellus Shale drilling, "free...more

Opportune LLP

Bargain Purchases In Energy Business Combinations: A Rarity Explained

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In the years since FAS 141 (now codified as ASC 805, Business Combinations) was implemented in 2001, the vast majority of business combinations have resulted in the recognition of goodwill or have been goodwill/bargain...more

Opportune LLP

Hyperinflation: Crude Oil Prices To Infinity & Beyond

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Find out why rising crude oil prices could pose a hyperinflationary threat to the U.S. economy....more

King & Spalding

Quantum Quarterly – Issue 12 – 4 Quarter 2020

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Claimant is an Australian joint venture between Chile’s Antofagasta plc and Canada’s Barrick Gold Corporation. In 2006, Claimant became a party to a joint venture agreement between it and the Government of Balochistan with...more

Opportune LLP

Contingent Consideration & Earnout Provisions: Reporting & Valuation Challenges for This New Oil & Gas Industry Norm

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Oil and gas companies should carefully review their contingent consideration and earnout provisions in purchase and sale agreements and be prepared for the reporting and valuation challenges that come with them....more

Opportune LLP

3 Fairness & Solvency Opinion Themes In The Context Of Latest Oil & Gas Bankruptcy Cycle

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We’ve been keeping busy, but unfortunately for the oil and gas sector, it has been especially busy in our Restructuring group. As we help clients navigate these difficult times, we’ve been noticing several common themes as...more

Spilman Thomas & Battle, PLLC

Currents - Energy Industry Insights - March 2020 #2

The Drop in Oil was Perhaps the ‘Final Straw’ for U.S. Credit Markets, Strategist Says - "The credit market is sensitive to moves in oil because a 'very large portion' of high-yield bonds in America are issued by...more

Opportune LLP

2020 Oil & Gas Impairments: What’s Behind the Numbers?

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Find out why some energy companies are considering potential oil and gas impairments amid low oil and gas pricing, and what key considerations go into conducting these impairments in order to comply with debt covenants and...more

Opportune LLP

Increased Swaption Activity May Present Financial Reporting Challenges for Oil & Gas Companies

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Lower natural gas prices are causing E&P companies to get creative with their hedging strategies to lock in near-term cash flows above the dismal levels the market is currently offering. When hedging with options, it’s not...more

Opportune LLP

Total Shareholder Return Plans: Accounting Implications & Valuation Assumptions

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The use of total shareholder return (“TSR”) plans as a form of performance-based compensation continues to grow in popularity as energy companies look for more efficient ways to match executive pay with performance....more

Bracewell LLP

Texas Supreme Court Expands Upon the Rights of Oil and Gas Producers to Deduct Post-Production Costs in Burlington Resources Oil &...

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To the relief of oil and gas producers, the Texas Supreme Court ruled on March 1, 2019, in Burlington Resources Oil & Gas Company, L.P. v. Texas Crude Energy, LLC (No. 17-0266), that post-production costs were rightfully...more

Opportune LLP

What Does Record BLM Oil & Gas Lease Auction Mean For Valuation?

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On September 7, 2018 the Bureau of Land Management’s (BLM) third-quarter oil and gas lease sale in New Mexico broke all previous records for BLM lease sales across the country, generating $972.48 million in bonus bids for 142...more

Opportune LLP

Profits Interests: Accounting & Valuation Considerations

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Executives at both public and private oil and gas companies commonly receive performance-based incentives. The objective is to link compensation closely to the financial results of a firm. These performance-based incentives...more

Opportune LLP

Drilling Down A&D Valuation Trends

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Finding, developing and producing oil and gas reserves is the prime directive of upstream energy companies. The oil business is very capital intensive with more than its fair share of relative risk. Energy companies can add...more

Opportune LLP

The Rise of Technology in Oilfield Services and Drilling: What it Means for Valuation

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Over the last few years, technology has become increasingly more prominent in the extraction and production of oil and natural gas. Oilfield service and drilling providers have worked to develop greater technological...more

Holland & Hart LLP

New Royalty Valuation Recommendations

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On February 28, 2018, the Royalty Policy Committee (RPC) met in Houston to present recommendations for improving the Department of the Interior's (DOI) valuation of royalties from oil, gas, and coal produced on federal and...more

Akin Gump Strauss Hauer & Feld LLP

Bridging Valuation Gaps and Other Barriers to M&A in the UK North Sea

Chrysoar, a little known oil company, backed by U.S. private equity (PE) firm EIG Partners, made headlines this week when it purchased $3.8 billion of North Sea assets from Shell. The sale comprises more than half of Shell’s...more

Nossaman LLP

Value Trends of Gas Stations and Car Washes

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In a previous post, “What is ‘Just Compensation’ For Gas Station Acquisitions,” we explored various methods for valuing gas stations and car washes in an eminent domain action, including a recommendation by a gas station...more

Morrison & Foerster LLP

Unsecured Creditor Perspectives in Energy Restructurings

This Practice Note provides guidance and advice to unsecured creditors in energy restructurings. This Note specifically addresses restructurings in the oil, gas, and coal industries and the strategies that unsecured creditors...more

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