Asset Valuations

To determine the market value for industrial assets, an understanding of the market environment, technical and operating risk factors, and ongoing capital requirements is often required.

Diverse clients

Clients that rely on our expertise in asset valuation include municipal taxing authorities, plant owners and operators, financial institutions, insurance companies, and legal firms involved in disputes over the value of oil and gas assets.

Common drivers

Our valuations are prepared for a variety of purposes, including market values for ad valorem taxes, fair values in mergers and acquisitions, and insurable values. We also value collateral for financing, asset transfers, and bankruptcy re-organization.

We’re in the weeds, so you reap the fruit

Our asset valuation experts often work closely with and advise financial teams on a wide range of technical and economic issues that impact various segments of the energy industry. Such issues may include:

  • The current economic and market outlook
  • Anticipated margins in the industry being assessed
  • Operating costs and cost drivers
  • Sustaining maintenance/regulatory capital requirements
  • Regulatory factors
  • Comparative values
  • Future feedstock availability
  • Depreciation factors
  • The cost of capital

Case Studies

When a Refinery Joint Venture Ends in "Divorce" - What are the Assets Worth?

January 1, 2015

This refinery valuation was more complicated than typical. When the joint venture relationship went sour, fair market value of the refinery had to be determined despite intemperate private block share transactions, skewed competitive market, and a lowly maintained facility. After site visits and the review of relevant operational, maintenance, and financial information, we presented our value opinions in two expert reports and testified before the arbitration panel.

How Much is "Old" Fuel Oil Worth?

August 1, 2017

When a fuel oil-fired power plant was sold for demolition and site reclamation, the parties could not agree on the value of the residual fuel oil inventory. Baker & O'Brien determined the "heel" in the residual product, disposition practices and options, and the ultimate product net value. We analyzed the quality of the product and assessed its value.

A Safety Net for Fast-Track Due Diligence Leads to Arbitration

April 1, 2015

An energy company entered into an agreement to purchase natural gas gathering and processing assets, including an escrow account to correct deficiencies that might be discovered post sale. This article summarizes Baker & O'Brien's investigation of facility compliance with applicable laws, conformance with recognized and generally accepted good engineering practice, and operability to meet obligations to producers. After a site visit and analysis, we submitted an expert report and presented oral testimony as evidence to the arbitration panel.