Profiting From the Fall

Click here to view the article in Private Equity International Magazine Authors: Josh Sherman, Partner, Opportune LLP; Sean Clements, Partner, Opportune LLP; Shubi Arora, Partner, Akin Gump Strauss Hauer & Feld LLP; Jhett Nelson, Counsel, Akin Gump Strauss Hauer & Feld LLP Energy prices may still be languishing but opportunities in the E&P sector are still there for the patient investor. With oil prices remaining significantly down from 2014 highs, […]

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Opportune Tax Alert: Texas Sales Tax Manufacturing Exemption for Below-Ground Equipment?

This Tax Alert reports recent developments in a Texas sales tax case with the potential to generate significant cash tax savings for the upstream industry. The Texas Supreme Court has set oral arguments in Southwest Royalties v. Glenn Hegar, Comptroller of Public Accounts for March 8, 2016.  Southwest Royalties is seeking a refund of Texas sales tax on purchases for below-ground equipment used in the processing of oil and gas.  […]

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Upstream: SEC Comments and Trends

The SEC continues to seek explanations and expanded disclosures from oil and natural gas producers regarding the impact of the decline in commodity prices on their business. The following commentary will help you understand the SEC’s primary areas of focus as you prepare your year-end financial statement disclosures. Click here to read on current SEC comments and trends.

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Josh Sherman and Sean Clements Respond to the Issue of Capital Availability for E&Ps

Click here to view the article in Oil and Gas Financial Journal By Mikaila Adams; Editor at Oil and Gas Financial Journal YOU DON’T WANT TO hear it again, I know, but let me frame my column with what we already know: A three year period during which crude oil prices hovered near US$100 has morphed into the gut-check that is the current state of the industry. Also transpiring during […]

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E&P Hedging During the Price Downturn: Risk Management or Financing Activities?

Click here to view in Oil & Gas Financial Journal By Rob Purdy, Shane Randolph & Matt Smith, Opportune LLP Upstream companies are experiencing liquidity strains due to recent energy price declines. While a recent industry study noted that the majority of upstream companies maintain a hedging program, many of their hedges have expired or will in coming months.  Exploration and production companies operate in a capital-intensive industry.  Drilling for […]

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Challenges Facing the Energy Sector: 2016 Outlook

Where are we at now? It is safe to say that the days of $100 oil are behind us. Oil prices began their descent in September of 2014 and hit rock bottom at the beginning of 2015. The value of natural gas, which is now trading at $2.20, has plummeted 80 percent from highs of $13.50 in 2008. We are experiencing unprecedented rig count decline, with the current nationwide rig […]

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Oil Prices: On the Brink of a Comeback?

Supply and demand is perhaps the most fundamental concept and the main driver of the market economy. Oil prices have been in a major slump since 2014, and while the current price of $45/bbl  is undoubtedly a strong driver in rebalancing the market, everyone is wondering just when market equilibrium will be restored. Fearful of losing their investments due to the historically low oil prices reflecting our current market, companies […]

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E&P Impairments Looming

View this Oil and Gas Financial Journal article online. By Josh Sherman, Partner, Opportune; Wade Stubblefield, Managing Director, Opportune, and Stephen Patton, Director, Opportune Lower Commodity Prices Will Impact Industry Throughout 2015 After an unprecedented number of initial public offerings and acquisitions in 2014, the oil and gas industry is now reeling from the subsequent decline in commodity prices. As of Jan. 9, 2015, spot crude oil and natural gas […]

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The Current Pricing Environment Has Amplified Concerns Over Goodwill in E&P Transactions

View this Oil and Gas Financial Journal article online. By Paul Legoudes, Director, Opportune The recent steep decline in oil prices has caused an uptick in goodwill being recorded in exploration and production acquisitions. Since the adoption of Accounting Standards Codification (ASC) 805, Business Combinations (formerly Statement of Financial Accounting Standards No. 141(R), which was effective for annual reporting periods starting on or after Dec. 15, 2008), the potential existence of […]

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Investors in Limited Partnerships Should Reassess Consolidation by First Quarter 2016

By Amy Stutzman, Director, Opportune Tulsa In February 2015, the FASB issued Accounting Standards Update No. 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis (“ASU 2015-02”) which significantly changes the consolidation requirements in ASC 810, particularly for limited partnerships common in the energy industry. ASU 2015-02 is effective for public entities beginning with the first quarter of 2016, so public entities should begin implementing the new guidance now if they […]

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