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Oil and Gas MineralsOil and Gas Minerals

How they and their holding entities are valued

Alan B. Harp, Jr., Managing Director

September 28, 2012

17 Min Read
oil drilling

 

Oil and natural gas valuation, in an estate-planning context, is becoming more important, as mineral ownership has created vast amounts of wealth in the past decade. New technologies have unlocked shale1 plays and brought older oil fields back to life. Furthermore, due to the proliferation of independent and, in many cases, private equity-backed oil and gas companies, oil and gas wealth is in the hands of more and more individuals. Estate planners advising clients who hold these assets need to know how minerals, especially non-producing minerals, and oil and gas holding entities are valued and what the Treasury regulations have to say about determining the fair market value (FMV) of oil and gas interests.  

 

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About the Author

Alan B. Harp, Jr.

Managing Director, Stout Risius Ross

Alan B. Harp is a Managing Director in the Valuation & Financial Opinions Group. He has over 20 years of extensive experience determining the fair market value of interests in closely held businesses. He has provided valuations in a wide range of industries primarily for estate, gift, and income tax purposes. Mr. Harp specializes in valuation of oil and gas interests and entities. He provides valuations in the oil and gas realm for a broad range of purposes, including tax and estate planning, corporate transactions, financial reporting, and bankruptcy. Prior to joining SRR, Mr. Harp was a Senior Managing Director at HFBE where he led the energy valuation group that specialized in the valuation of closely held Exploration & Production (E&P) firms. Mr. Harp is a Chartered Financial Analyst and Accredited Senior Appraiser of the American Society of Appraisers and is licensed as an FINRA Series 7 General Securities Representative. He is also a member of the Texas Independent Producers and Royalty Owners Association (TIPRO) and the Houston Producers Forum.

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