Combined Cycle Cogeneration Plant Valuation

Completed an income analysis for a large natural gas combined cycle cogeneration power plant in Texas, and assisted licensed appraiser in preparing a market value report in support of property tax litigation.  Income analyses covered multiple tax years and considered different operating scenarios as part of highest and best use assessment.  Also assisted in cost approach and functional obsolescence determination.  Provided deposition testimony in support of work.

Crude Pipeline Gathering System Economic Study

Reviewed 500-mile domestic crude gathering system logistics and crude delivery economics.  Provided recommendation on possible divestiture, crude oil processing economics, and consideration of alternative crude oil supply sources.

Refinery Market Value

Performed economic evaluation of a large Gulf Coast refinery to determine the probable range of sale price.  Evaluation performed for a prospective buyer of the refinery.

Review of Economics for Carbon Dioxide (CO2) Pipeline and Tertiary Crude Oil Recovery Project

Provided arbitration testimony concerning the viability of tertiary recovery and the developer’s project economics evaluation methodology.

Refinery and Marketing Joint Venture Valuations

Evaluated potential synergies of U.S. downstream joint ventures between several integrated oil companies, assessing the market value of the individual company’s downstream assets, and the potential combined value. Participated in management discussions between companies exploring possible combinations.

Refinery Valuation

Determined historical earnings of a bankrupt Midwest U.S. refinery for dispute between previous and current owners.  Sales contract contained provisions which were in dispute for potential earn out payments between buyer and seller.

Watson Millican & Company consultants have prepared asset valuations for the purposes of acquisitions and divestures, property tax assessments, financing, insurance claims, purchase price allocation, contract disputes, insurable loss and bankruptcy. Valuations are performed using the appropriate and accepted methods for the particular assignment, including income, replacement cost and comparable sales approaches.

Our consultants have worked closely with appraisers, accountants and other professionals in valuing assets in the hydrocarbon industries. Our valuation experience includes natural gas processing plants, refineries, ethylene plants, pipelines for crude, natural gas, natural gas liquids, carbon dioxide, refined products and petrochemicals, as well as storage and distribution terminals.