Tax Planning Valuation of a FLP Holding a Permian-based E&P Company’s Incentive Units

January 2023
TOP prepared a valuation analysis to estimate the fair market value of certain interests in a family limited partnership (FLP) for gift and estate tax planning purposes.  The holdings of the FLP included incentive units related to a Permian-based exploration and production company with oil and gas interests primarily located in the Delaware basin and an estimated total enterprise value of approximately $2,750.0 million.  Our analysis included the valuation of the company’s reserves, allocation of the company’s equity value to its various equity classes, a comprehensive discounts study, and application of multiple levels of discounts for lack of control and marketability to estimate the fair market value of the FLP interests on a non-controlling, non-marketable basis.
About Tall Oaks Partners

Based in Houston, TX, Tall Oaks Partners provides valuation and financial advisory services to corporate management of public and private companies, investment and fund managers, and stakeholders in businesses of a variety of scale. The Tall Oaks Partners team has significant experience assisting clients with a multitude of valuation matters for strategic, tax, and financial reporting purposes. Our services and deliverables are tailored to client needs and prevailing industry and economic trends.

 

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