Saving an Oil & Gas Major Millions Annually

This major oil and gas producer owns and operates assets in the Permian Basin.

Challenge:

  • To reduce its tax liabilities during an industry downturn, the company sought to have assessments on its wells adjusted to reflect current market conditions.
  • Our client needed a partner who would work with appraisal districts and their representatives proactively to resolve valuation issues prior to public appeal hearings.

Merit Solution:

  • Merit Advisors’ property tax team worked closely with the company to identify areas of its cost structure that might offer overlooked opportunities to reduce assessments.
  • Merit gained a thorough understanding of our client’s assets and operations to successfully serve as their advocate in negotiating property valuations.
  • All the necessary data was provided to the appraisal districts to support valuation reductions and corrections.
Oil gas drilling rig on sunset background. Industrial concept

$9.8M

annual cash tax savings

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.