Case Study

First Year Reductions

Our team at KE Andrews was recently retained by a large oil and gas company operating 1,000+ leases. What we’ve seen historically is that with the application of our proprietary systems and state and local relationships spanning decades, we’ve been able to save our clients on average 20% over and above what they were securing before.

THE CHALLENGE

A first-year client had historically been in a tax position where their leases were chronically being overvalued on the tax rolls in the state of Texas. They were looking to take a more aggressive stance in terms of their ad valorem tax position and were also looking for administrative solutions ranging from accounting system integration to advanced accruals at the well level.

THE APPROACH

Our team was able to quickly acquire all required data with minimum intrusion on the client’s time. We took advantage of every opportunity to negotiate with third-party appraisers up to and including formal board hearings, our systems allowing us to maintain an aggressive stance until the very last moment. We also identified cases of double taxation for properties on county lines. Finally, we utilized our systems to streamline the accrual and tax payment process by integrating with the client’s accounting software and providing custom uploads for accruals.

THE SOLUTION

We secured a tax savings for the client of over $7,500,000 in the first year, saving them approximately 30% more than they were experiencing historically. We were able to streamline the entire property tax function from beginning to end inclusive of providing them detailed accruals.

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