Rewards of Merit: Property Tax

Reducing Non-Op Working Interest Values to Save Thousands

Client:

A small E&P company with a focused presence in East Texas engaged Merit to help improve its bottom line.

Results for client

$100K

Annual Cash Tax Savings

Implemented a Strategy to Eliminate Annual Tax Liabilities

Challenge:

  • Client sought to minimize property tax liabilities for its mineral properties by reducing the working interest values.

Merit Action Plan:

  • Communicated with the client regularly to determine operating expenses and learn about the properties to develop strategies for maximizing value reduction.

  • Negotiated with valuation firm to reduce value of client’s properties based on differing parameters within appraisal.

  • Applied a holistic approach encompassing expenses, burdens and post-production capital expenditures.

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