Wiping Out Tax Liabilities for Non-Op Interests

This small exploration and production company maintains a focused presence in East Texas.

Challenge:

Seeking to improve its bottom line, the company engaged Merit to minimize property tax liabilities for its mineral holdings by reducing the working interest values.

Merit Solution:

• Merit Advisors worked closely with the client to learn about the properties, determine their operating expenses and develop strategies for maximizing value reduction.
• Our property tax team negotiated with the valuation firm to reduce our client’s assessments—taking a holistic approach that included expenses, burdens and post-production capital expenditures.

Result:

In addition to finding immediate savings, Merit implemented a strategy to eliminate annual tax liabilities moving forward.

$100,000

Annual Tax Savings