Reducing Valuations for Underutilized Assets

This Merit Advisors client is a small, private oilfield service equipment company.

Challenge:

  • The company owned some underutilized and idle assets which were effectively generating no income.
  • Seeking to find money to support their employees, the company engaged Merit to prove the diminished value of the equipment.

Merit Solution:

  • Our property tax team collaborated with the company to determine the correct valuation for the relevant assets.
  • Merit then provided detailed information to taxing jurisdictions to support our client’s claim of diminished asset valuations.

Result:

Through negotiations and appeals, Merit successfully persuaded authorities to reduce our client’s asset values to more reasonable levels.

72%

Reduction in Tax Liability

$2.2M

Reduction in Overall Value

Rewards of Merit

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

Wiping Out Tax Liabilities for Non-Op Interests

Royalties & Non-Op
Case Study

This operator engaged Merit to minimize property tax liabilities for its mineral holdings by reducing the working interest values.

Fixing a Mineral Interest Mistake to Secure Big Savings

Royalties & Non-Op
Case Study

This large operator turned to Merit after a state Tax Commission error resulted in an unfair valuation.

Reducing Inflated Assessments the Competition Overlooked

Downstream
Case Study

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