Energy Industry Consultants - M&A, Audit, Tax

Horizontal drilling, fracking, spud, Christmas tree, carried interests, upstream, midstream and downstream…the industry has a language all its own – one Armanino knows well after decades of working with companies involved in exploration, production, gathering and distribution, among others. Our clients are part of this diverse industry in subsections that include:

• Exploration and production (E&P) companies
• Pipeline, transportation and compression companies
• Drilling funds
• Natural gas marketing firms
• Oil field service industries
• Oil field equipment manufacturers

Armanino successfully blends highly technical expertise with a strong commitment to service. Our focus on emerging, independent and middle-market energy companies allows us to be more flexible and meet the constantly evolving needs of our clients. We offer innovative, smart solutions to change your future now

Audit

We have extensive experience working with clients in multiple phases of energy industries, including:

• Exploration and production companies (including modern exploration techniques such as horizontal drilling and 3D seismic)
• Gathering systems, compressor stations and pipelines
• Downstream activities, including fracking stations and small refining operations
• Transportation/delivery and retail distribution

We are also familiar with technical aspects, including:

• Full cost and successful efforts accounting methods
• Asset retirement obligations
• Environmental issues
• Derivative transactions (floors, collars and ceilings)
• Variable interest entities
• Reporting requirements for public and private entities
• Deferred taxes
• Tax reporting (including statutory depletion and other GAAP and tax differences)

Audit

Tax

Armanino’s tax experts are a well-versed team with significant energy, oil and gas experience. We work with individuals (investors as well as promoters), partnerships (multi-level partnerships and special allocations) and corporate entities in all their dealings, including:

• Accounting and taxation during the property life cycle (exploration, production and disposition)
• Acquisition of properties – leases and lease bonuses, net profits interest, working interests, royalty interests, delay rentals, advance royalties, overriding royalty interests, production payments, and ownership interests exchanged for services
• Drilling and development – geological and geophysical costs, expensing versus capitalized costs, intangible drilling costs, carried interests, tangible equipment costs, completion costs and dry hole costs
• Production – taxation of different types of mineral interests, depreciation of lease and well equipment, lease operating expenses, cost and statutory depletion calculations, barrel limitations, and net income and 65% limitation calculations
• Sales exchanges and other dispositions – sales, leases, farmouts, like-kind exchanges and abandonment

Tax

Consulting

We provide a wide range of specialized consulting services for energy companies, such as financial management outsourcing, operational and internal audits, and software implementation. Other services include:

• Lease commitment management
• Foreign ownership and reporting
• Sales and exchanges
• Sales and use tax
• State and local tax advice and representation
• Income taxing authority representation
• Business valuation
• Succession planning