Fair Market Value Reports
Ryder Scott has extensive experience in determining fair market values (FMVs) to be used in property transactions, tax liability, law suits, royalty and gift-tax cases, private-estate settlements, and dispute resolution involving government agencies. Our methods for determining FMV guidelines have been empirically derived from hundreds of industry transactions involving properties worth billions of dollars. The determination of FMV begins with a thorough study of all the geological, geophysical, petrophysical, engineering, and marketing data available to make projections of reserves, future production and income attributable to the properties. Ryder Scott considers several parameters in estimating the FMV of oil and gas properties. We escalate prices and costs, risk adjust the reserves, estimate return on capital, analyze rate of return and return on investment, and review political risks. The actual FMV or price paid for a property is set in the marketplace and includes many more considerations than those shown.