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)




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