How We Can Assist with Current Energy Industry Accounting & Tax Issues

Cost Management for Internal Financial Functions

Project billing, month-end closings, and reports for lenders can place burdens on your existing finance and accounting staff. And with the continued uncertainly surrounding commodity pricing, many energy companies are seeking ways to reduce internal fixed costs yet maintain efficient operations.

How to prepare: Briggs & Veselka’s outsourced controller and accounting services gives you budget flexibility and control when you require interim support of full back office accounting functions.

Acquisitions & Divestitures

The volatility of commodity pricing continues to create transaction opportunities in E&P and oilfield services companies as companies right-size their operations.

How to prepare: Our Acquisitions & Divestitures group can work with management, lenders, and private equity firms on the valuation, diligence, analysis, tax planning, closing, and newco structures. Our team has worked on a diverse set of transactions with a wide range of purchase prices, entity structures, and types of buyers and sellers.

Recovery from Vendors

Oftentimes, actual contract delivery and performance varies from the terms of a supplier contract, causing hidden losses on the operator or services company. When the energy business was booming, few companies would even attempt to reconcile underperformance.

How to prepare: Briggs & Veselka professionals can perform audits of actual vs. contracted performance and, depending on the terms of the contract, find cash recoveries for the company. Proactively, we can examine current contract structure from a performance standpoint to advise you on how to create opportunities for recovery in future contracts. 

Lease Accounting Changes

For E&P and service companies who rely on leasing capital equipment, the new lease accounting standards can have significant impact on financial statements and financial covenants. It is important to understand the implications on covenants currently being negotiated.

How to prepare: Briggs & Veselka audit professionals can assist in determining the potential impact of these new standards in advance of them going into effect and offer planning options to take a proactive approach with lenders and other users of financial statements. 

Operations in Foreign Jurisdictions

The complexities of oil & gas operations are compounded in foreign jurisdictions from regulatory, tax, operations, and fraud standpoints. Many middle market E&P and service companies either don’t have the experience or the resources to address these issues.

How to prepare: Our international services group has extensive experience advising companies on entity structure, fraud issues, and other complexities that allow for efficient operations in foreign jurisdictions. We partner with legal, insurance, and other professional services to create seamless solutions for ventures into foreign jurisdictions.

Who We Serve

  • Oilfield Services Companies
  • Power & Utility Companies
  • Exploration & Production Companies

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