Proprietary Well Modeling Leads to Large Savings

This independent exploration and production company owns and operates assets in the Eagle Ford Shale and Austin Chalk.

Challenge:

The client was overpaying property tax on many wells due to inaccurate well modeling by appraisal firms.

Merit Solution:

  • Merit Advisors’ property tax team conducted a rigorous analysis of the client’s lease operating expenses, including capital expenditures where appropriate.
  • Using our customized forecasting tools, we modeled start rates, decline curves, well lifetimes and economic limits, to confirm correct pricing—including market cost deductions.

Result:

Merit’s corrected well modeling significantly reduced our client’s assessed values.

$829 Million

Value Reduction

$10.4 Million

Ad Valorem Tax Savings

Rewards of Merit

Explore our case studies to see how Merit helps energy companies unlock trapped value.

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Reducing Inflated Assessments the Competition Overlooked

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Unhappy with its prior tax consultant, this petrochemical facility wanted a partner who could reduce its ad valorem assessments.