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Valuation of Permian-based E&P Incentive Units for Tax Purposes

Valuation
Energy & Resources
Business, Assets & Legal Entity Valuations
Discount & Premium Studies
Stock-based Compensation

About us

TOP prepared a valuation analysis to estimate the fair market value of certain incentive units related to a Permian-based exploration and production company.  The oil and gas interests were primarily located in the Delaware basin and contributed to a total enterprise value of approximately $150.0 million.  Our analysis included the valuation of the company's reserves, the allocation of the company's equity value to its various equity classes using a Monte Carlo simulation analysis, and a comprehensive discounts study.  The company used our fair market value estimates as the basis for an IRC Section 83(b) election related to certain equity/incentive unit grants.

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Valuation of Permian-based E&P Incentive Units for Tax Purposes

Valuation
Energy & Resources
Business, Assets & Legal Entity Valuations
Discount & Premium Studies
Stock-based Compensation
February 2025

About Us

TOP prepared a valuation analysis to estimate the fair market value of certain incentive units related to a Permian-based exploration and production company.  The oil and gas interests were primarily located in the Delaware basin and contributed to a total enterprise value of approximately $150.0 million.  Our analysis included the valuation of the company's reserves, the allocation of the company's equity value to its various equity classes using a Monte Carlo simulation analysis, and a comprehensive discounts study.  The company used our fair market value estimates as the basis for an IRC Section 83(b) election related to certain equity/incentive unit grants.

For more information, please contact:

Relevant experience

Bringing technical and industry experience to advise and deliver services to our clients

Consultative Services to a Private Equity Firm

Valuation of a Permian-based E&P Company and its Incentive Units for Financial Reporting Purposes

Valuation of Certain Interests in an Investment Holding Company for Tax Planning Purposes

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