Case Study: Property Tax

Supporting an E&P Through a Major Asset Sale

Supporting an E&P Through a Major Asset Sale

CHALLENGE

A large E&P company with substantial acreage in a major shale basin was selling off a large block of assets. The company engaged Merit Advisors to minimize property tax liability for the benefit of both parties involved in the transaction. In addition, the company needed to transition the property tax function to the buyer in order to allocate personnel and resources more efficiently.

MERIT SOLUTION

Merit worked in partnership with the client’s internal tax department to maximize the capabilities of both teams. Together, we:

  • Negotiated directly with county appraisal districts (CADs) following a thorough review of appraisals
  • Completed valuation work before CADs issued appraisal notices in most instances, lowering the basis for negotiations and eliminating formal public hearings

RESULT

Merit helped the client secure lower appraisal values, reducing annual cash tax liability by $4 million year-over-year. Our repeatable methodology ensured these benefits could be sustained over the long term. Merit also developed a strategy for estimating annual tax liability, and created a forward-looking process for the asset block buyer.

test

CHALLENGE

A large E&P company with substantial acreage in a major shale basin was selling off a large block of assets. The company engaged Merit Advisors to minimize property tax liability for the benefit of both parties involved in the transaction. In addition, the company needed to transition the property tax function to the buyer in order to allocate personnel and resources more efficiently.

MERIT SOLUTION

Merit worked in partnership with the client’s internal tax department to maximize the capabilities of both teams. Together, we:

  • Negotiated directly with county appraisal districts (CADs) following a thorough review of appraisals
  • Completed valuation work before CADs issued appraisal notices in most instances, lowering the basis for negotiations and eliminating formal public hearings

RESULT

Merit helped the client secure lower appraisal values, reducing annual cash tax liability by $4 million year-over-year. Our repeatable methodology ensured these benefits could be sustained over the long term. Merit also developed a strategy for estimating annual tax liability, and created a forward-looking process for the asset block buyer.

The Rewards of Merit
$4
million
Year-over-year cash tax savings