KPMG report: Avoiding common pitfalls in oil and gas reserve valuations for U.S. tax purposes
The key to an oil and gas company’s compliance with U.S. tax reporting requirements is performing impartial valuations of the FMV of its assets.
Avoiding common pitfalls in oil and gas reserve valuations for U.S. tax purposes
Oil and gas businesses often actively seek acquisitions to expand their oil and gas reserve base, enhance operational efficiencies, and grow shareholder value. For these businesses to comply with U.S. tax reporting requirements for fair market value (FMV) of the assets, they require impartial valuations. Companies preparing income-based valuation analyses often wrestle with recurring and challenging issues specific to the oil and gas reserves.
A close examination of these commonly seen issues/pitfalls can help acquirers estimate the FMV of oil and gas reserves for U.S. tax purposes.
Read a January 2024 report* [PDF 169 KB] prepared by KPMG LLP tax professionals: Avoiding Common Pitfalls in Oil and Gas Reserve Valuations
* Reproduced with permission from Tax Management Memorandum, 65 TMM 05, 01/25/2024. Copyright ® 2024 by Bloomberg Industry Group, Inc. (800-372-1033) http://www.bloombergindustry.com
The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 3712, 1801 K Street NW, Washington, DC 20006.