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Valuation Services for Energy Companies

Oil and gas, metals and mining, and power and utility valuations you can count on 

The oil and gas industry faces numerous valuation issues. Depressed oil and gas prices have made business conditions difficult for exploration and production (E&P) companies, many of which carry heavy debt loads. Their ability to borrow is constrained by the value of their reserves. Likewise, oilfield service and equipment (OFSE) companies have been severely impacted, as demand for drilling, completion and other services fell along with commodity prices. Private equity interest, bankruptcy and restructuring concerns, and asset impairments have driven valuation needs. Companies in these sectors have worked to firm up their balance sheets and reassess depressed asset values. Midstream transportation and storage companies have also been affected as many of their assets are tied to activity in the E&P sector.

Power and utility companies face varying market conditions. The nuclear sector has struggled with post-Fukushima concerns and waning demand, resulting in sustained lower uranium prices. Abundant natural gas supplies in the United States and environmental concerns have resulted in significant coal plant retirements and bankruptcies of many large coal mining companies. Capacity associated with coal and nuclear plant retirement is being replaced with natural gas and renewable generation. Although there is much uncertainty regarding the future of the Clean Power Plan and a potential withdrawal of the United States from the Paris Agreement, state renewable portfolio standards, a global movement away from carbon, and declining levelized cost of electricity (LCOE) will continue to drive investment in the alternative energy sector.

RSM understands. We offer deep, proven experience valuing a wide range of assets for energy companies, including:

  • Mineral interests
  • Exploration interests
  • Royalty interests
  • Pipelines and right-of-ways
  • Terminals, processing plants and storage facilities
  • Refinery assets
  • Gas stations and related real estate
  • Supply contracts
  • Power purchase agreements
  • Hedge books and derivatives

Our services include:

  • Purchase price allocations under ASC 805 and IFRS 3
  • Asset impairments under ASC 350, ASC 360 and IAS 36
  • Derivative valuation analyses under ASC 815
  • Fair value analyses under ASC 820
  • Tangible asset valuations for financing, insurance or other purposes
  • Asset and equity valuations for tax purposes
  • Analyses for fresh start accounting
  • Regional price projections
  • Cash flow projections and model reviews
  • Due diligence for mergers and acquisitions, dispositions and financing

Energy is a global business. RSM responds with global resources, with resources available in offices across the United States and, through RSM International, around the world. Our deep bench of valuation professionals holds credentials from the American Society of Appraisers, American Institute of Certified Public Accountants, Chartered Financial Analysts and the National Association of Certified Financial Analysts. Combined with ongoing internal training, this means you can count on professionals who are up to date on today’s standards and methodologies, giving you results you can count on.

How can we help you?

To discuss how our team can help your business, contact us by phone 800.274.3978 or


Steve Sprenger
Principal

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