Sector Expertise
E&P is in our DNA.
Oil and gas production is a highly technical business with its own vocabulary, and it can be tough for outsiders to grasp the nuances. At Merit Advisors, we know the oil and gas industry firsthand—we speak your language and understand your challenges. That’s why operators of all sizes work with Merit to minimize assessed values, reduce cash operating costs and achieve other key business objectives.
- Leveraging our sector expertise, Merit has developed proprietary methodologies and software that help our clients achieve better outcomes.
- Our collaborative approach—including a rare degree of transparency—yields solutions that continue to deliver results for the long term.
- Merit’s E&P clients routinely save enough money to drill multiple additional wells per year.
“They’ve taken my advice on how we could potentially improve processes, and they’ve contributed their own process improvements. It’s really collaborative, and I feel like they’re part of my team.”
Director of Tax
Large Private E&P/Midstream Company
E&P Services
Explore our solutions for oil and gas operators.
Property Tax Services
Reduce Your Tax Liability. Increase Your Reserves.
Myriad factors determine how oil and gas assets should be taxed—and no one knows them like Merit. For each individual well, we use all available inputs to understand the fair market value of your reserves and determine the ideal approach to minimize your tax liability.
- Close working relationships with tax authorities enable us to advocate for you more effectively.
- Regular accrual updates eliminate surprises and help you budget for next year’s spend.
- Long-term solutions keep your valuations down year after year.
$7 Billion
Ad valorem value reduction achieved for our clients in 2023
Sales & Use Tax Services
Watching Every Penny You Put into Your Wells
In the energy industry, it’s not unusual to see vendors err on the side of caution by overcharging sales and use tax. Merit’s unique insight into the nuances of how oilfield services are taxed enables us to identify opportunities to reduce your sales tax spend and recover past overpayments.
- Longstanding relationships with state auditors help us accelerate audit processes and achieve optimal outcomes.
- Uncommon transparency into our work enables you to implement long-term fixes instead of making the same overpayments year after year.
- Flexible engagement structures to meet your needs—from project work to serving as your fully outsourced sales tax department.
$500+ Million
Cash tax savings for our E&P clients in the past 3 years
Severance Tax Services
Put Your Money to More Productive Use
Severance tax is typically your largest tax expense, yet expertise in this highly specialized area is rare. Merit brings an exhaustive knowledge of oil and gas leases—including available deductions, incentives and exemptions—to minimize your severance tax burden and recover overpayments.
- Well-established relationships with state auditors enable us to streamline audits and deliver optimal results.
- Proactively minimizing tax dollars out the door to enhance your free cash flow and eliminate the need for resource-intensive refund claims.
- Monitoring your production and costs throughout the year to reduce your severance tax liability in real time.
26.45%
Cumulative savings rate for Merit severance tax clients
Credits & Incentives Services
Access Every Dollar You Deserve
As an E&P, you’re constantly seeking new ways to improve your oil and gas production and increase efficiency. You may be:
- Developing new technologies or methodologies
- Taking steps to reduce your carbon footprint
- Diversifying into renewables or carbon sequestration
All of those pursuits require innovation—work that could make you eligible for substantial R&D incentives. With our oil and gas focus, Merit understands the full range of opportunities for operators to capitalize on local and federal programs that reward companies for breaking new ground.
Those opportunities have expanded in recent years with the passage of the federal Inflation Reduction Act and other legislation. And because Merit knows the significant impact these programs can have on your bottom line, we built a dedicated team to ensure you’re capitalizing on them fully.
Real Estate Services
Maximize the Value of Your Asset Base
As your state and local tax partner, we develop a 360° understanding of your asset portfolio, encompassing both real estate and business personal property. That holistic viewpoint enables our multidisciplinary team to pinpoint opportunities to gain efficiencies and take other strategic steps to minimize both your operating and capital costs—allowing you to return cash back to your bottom line.
Our real estate services fall under three main categories:
- Valuation – Our valuation services include appraisal of both tangible and intangible assets; asset screening and verification; and compliance and tax evaluation.
- Monetization – Our monetization services include capital and funding evaluation; acquisition and disposition support; M&A facilitation; and leasing, subleasing and lease auditing services.
- Advisory – In addition to advisory and execution services for sale-leaseback initiatives, Merit provides advisory services on development and construction; site selection and credits/incentives; repositioning; asset remediation; real estate portfolio strategy; and property management and monitoring.
How Much Value Can
Merit Add to Your Business?
Let our expert team of energy business advisors perform a health check to find out. Chances are Merit can add value, but if not we’ll tell you—honestly.
