Home

Quick Links

Legal & Sitemap

navigation
Home > Industry > Oil and Gas

Oil and Gas

Globally, the petroleum industry is experiencing continued price volatility, significant technology advancements, regulatory changes and the opening of new markets. Companies have expanded internationally through production sharing contracts, mergers and acquisitions, and strategic alliances. What's more, the industry faces higher costs for compliance with environmental and safety standards. With decades of industry experience, Armanino supports oil and gas companies throughout these market fluctuations and conditions.

Our Approach

Horizontal drilling, fracking, spud, Christmas tree, carried interests, upstream, midstream and downstream…The oil and gas 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 oil and gas clients 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 oil and gas 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.

What We Do

We understand the complexities of the oil and gas industry, and our experienced team offers a full range of specialized services, including:

Audit

Audit

We have extensive experience working with clients in multiple phases of the oil and gas industry, 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)
Tax

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 in the petroleum industry, including:

  • Accounting and taxation during the life cycle of an oil and gas property (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
Consulting

Consulting

We provide a wide range of specialized consulting services for oil and gas 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

Our Team

Practice Leaders

Ken Kay

Partner


Related Experts