Valuation

Pearson Adair & Co. provides valuation services to stakeholders in the energy space. Determination of value is dependent on many factors that are unique to each assignment. In determining value, our professionals draw from our extensive knowledge base to complete supply/demand and market assessments, price and margin forecasts, and evaluation of actual financial results, including auditing and backward-looking analyses. We also deliver stand-alone analyses with respect to the components of valuation if needed to support overall valuation assessments led by others. We can provide detailed documentation of our work in prose reports, or in summary form with more limited documentation depending on client needs.

Our professionals are frequently retained to offer valuation opinions associated with complete business units or corporations, stand-alone assets, stand-alone projects, individual contracts, and specific process units/equipment. Pearson Adair & Co. also advises clients regarding allocation of value in situations as diverse as allocation of sales transactions or gas processing contract proceeds. Valuation opinions may be provided to support dispute resolution, for asset appraisals, to complete feasibility assessments and for formal valuation of insurance claims, including property loss and business interruption. Whether your needs are limited to niche market assessment or require worldwide market assessment, Pearson Adair professionals have the market, technical, and commercial knowledge and experience to evaluate most aspects of the energy value chain.

Fair Market Value of Compressor Station

Determined the value of a large compressor station on an interstate natural gas pipeline system for the purpose of proper assessment of property taxes. Valuation considered comparable sales, depreciated replacement cost, and discounted cash flows.

 

Evaluation of Damages, Gas Sales, and Processing

Provided expert testimony and damage assessment in a contract dispute between two major integrated exploration and production companies in the U.S. Evaluation included the construction of a multi-period model to recreate accounting allocations for several hundred sales points associated with two gas processing facilities.

 

Asset Appraisal

Retained as expert to provide an appraisal of gas processing assets located in East Texas. Provided a preliminary assessment of the value of the assets for ad valorem tax purposes; analysis included use of the income, cost, and market approaches to value.

 

Prudhoe Bay Royalty Litigation

Named as rebuttal witness, filed expert testimony, and provided consulting support in a royalty dispute involving Prudhoe Bay gas processing facilities and NGL recovery. Testimony involved review and rebuttal of defendants’ expert testimony, proposed cost allocation methodologies, detailed process engineering studies, and overall Prudhoe Bay unit issues.

 

Valuation, Development Bankruptcy Proof of Claim

Retained by Enron counterparties in commodity and interest rate swap contracts to determine damages and assess amounts owed by the Enron estate to the partnership.

 

Expert Testimony, Valuation of Overriding Royalty Interest, Equatorial Guinea

Retained to analyze and formulate expert opinions regarding the methodology being utilized by Integrated International Oil and Gas Company to determine the market value of NGL and condensate being produced in Equatorial Guinea for export. Analyses included completion of an audit of prior payments made to the holder of the Overriding Royalty Interest as well as evaluation of the fair market value of the products based on netback methodology..

 

Expert Testimony Natural Gas, LPG, And Olefins Underground Storage Loss, Major U.S. Gas Transmission Pipeline Company

Retained to provide expert opinions with respect to the technical capabilities and commercial value of adjacent underground storage caverns located near the Henry Hub in Louisiana. Completed evaluation of technical capabilities of storage facilities for natural gas, LPG, and olefins in order to assess losses associated with the catastrophic failure of one cavern. Valuation included assessment of market conditions such as supply/demand and pricing prior to the incident, at the time of the incident, and in the future. Provided expert opinions for case-in-chief and rebuttal as well as deposition testimony. Parties settled prior to trial.

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