Baker & O'Brien, Inc.

Experience

Experience

 

Case Attribute: Physical Asset Appraisal

Article
Biodiesel Plant Due Diligence
Performed a site inspection and advised a potential investor on the commercial and technical risks associated with converting a chemical plant to biodiesel production.
Physical Asset Appraisal
Chemical Plant Fair Market Valuations for Ad Valorem Tax Appeals
Developed fair market valuations for two major chemical plant installations on behalf of the local appraisal district. The engagement included valuation by discounted cash flow, depreciated replacement cost, and comparable sales approaches, as well as a critique of the petitioner's methodologies and assumptions.
Ad Valorem Taxes , Physical Asset Appraisal , Pricing
Contractual Dispute - Property Tax
Prepared an analysis of property taxes relative to refining complexity for a number of refineries in a particular region, using public information, for hearings with a district appraisal board.
PRISM Data or Analysis , Ad Valorem Taxes , Physical Asset Appraisal , Pricing
Cost Allocation Report
Following a refinery fire incident and rebuild, performed an analysis of all elements of the repair costs, and produced a report that assessed and allocated repairs into three categories:  identical replacement, functional replacement, and upgrade.
Industry Practice/Standard of Care , Operations/Maintenance , Physical Asset Appraisal , Pricing
Due Diligence of Gas Gathering and Processing Assets
Conducted due diligence on gas gathering and processing assets within the Permian Basin in Southeast New Mexico and West Texas on behalf of lending group and prospective purchaser. Conducted physical inspection of the facilities, reviewed operation and maintenance records, assessed gas supply and competitive position, and reviewed financial assumptions and projections to ensure consistency with current gas supply contracts and asset performance.
Industry Practice/Standard of Care , Operations/Maintenance , Physical Asset Appraisal , Pricing
Economic Damages Litigation - Plant Fire
Following furnace damage and rebuild, provided expert regarding property damage costs and normal maintenance/scheduled turnaround/betterment costs. Similarly, business interruption costs were compiled with reference to market situation and product volumes that were available from inventory.
Business Interruption , Industry Practice/Standard of Care , Operations/Maintenance , Physical Asset Appraisal
Estimate for Fire Rebuild
Developed a cost estimate for replacing and/or purchasing new equipment and materials after damage from plant fire.
Industry Practice/Standard of Care , Operations/Maintenance , Physical Asset Appraisal , Property Damage
Fischer Tropsch (FT) Liquids Market Study
Evaluated potential markets for Fischer Tropsch products, and the logistical requirements to access those markets from a coal-to-liquids facility.  The products included LPG, naphtha, jet fuel, and diesel, and the analysis included expected netback pricing (FOB the plant) to support financial modeling of the capital project.
Gas to Liquids , Physical Asset Appraisal , Pricing , Project Feasibility
Manufacturing Facility and Plant Evaluation
Performed an on-site assessment of a pipe manufacturing facility to determine operational viability. Key assessments made on mechanical integrity and reliability of the process equipment, technical understanding and organizational strength of facility personnel, and related operational issues.
Physical Asset Appraisal , Project Feasibility
Midstream Acquisition Due Diligence
Assisted energy distribution company with due diligence for potential transaction involving gas gathering and processing assets located in the Permian Basin.  Assets evaluated included over 4,000 miles of gas and liquid pipelines, four gas processing plants, and multiple gas treating plants.  Participated in data room reviews and management presentations with a focus on commercial, operational, and technical evaluations of midstream systems.  Developed comprehensive economic model of the integrated gathering and processing assets that was used to determine valuations and evaluate key sensitivities.
Industry Practice/Standard of Care , Operations/Maintenance , Physical Asset Appraisal , Pipeline , Pricing
Natural Gas Pipeline and Processing Plant Due Diligence
Assisted an electric utility in its merger with a gas transmission and distribution company. Inspected pipeline and processing facilities and reviewed natural gas and natural gas liquids supply and marketing issues. Conducted operations review and an analysis of staffing levels.
Physical Asset Appraisal , Pricing
Salt Water Disposal Tank Explosion
Investigated the cause and origin of a storage tank explosion at an oil and gas salt water disposal facility in Colorado. Conducted site investigation and facility/equipment inspections, evaluated system design and operation, and conducted witness interviews. Determined cause of explosion and worked with company management to evaluate existing policies and procedures for potential areas of improvement.
EPC-related , Industry Practice/Standard of Care , Operations/Maintenance , OSHA-related , Physical Asset Appraisal , Safety
Refinery Evaluation
Retained by a financial institution to conduct an independent assessment of an asphalt refinery. In addition to an analysis of the market environment, the assessment included a review of the general condition of machinery and equipment and projected operating performance of the refinery.
Physical Asset Appraisal , Pricing
Replacement Cost Determination
Provided a comprehensive estimate of replacement costs for oil and gas producing facilities, offshore production and drilling platforms, gathering systems, storage facilities, and processing plants. These costs were used as a basis for establishing appropriate levels of insurance coverage for a major petroleum corporation.
Offshore , Physical Asset Appraisal
Asphalt Refinery Valuation
Concerning an owner's capability and obligation to pay a prior arbitration award, determined a retrospective fair market value of an asphalt refinery and provided testimony regarding the estimated value of the refinery assets.
Expert Witness/Testimony , Physical Asset Appraisal , Pricing
NGL Pipeline Due Diligence
Reviewed data presented by a potential NGL pipeline seller on behalf of a potential buyer. The review focused on mechanical integrity and other safety issues.
Operations/Maintenance , Physical Asset Appraisal , Pipeline
Gasoline and Diesel Terminal Due Diligence
Performed technical due diligence for terminal assets on behalf of financial firm.  Visited the facilities and reviewed relevant documentation to advise the client on issues concerning the operability, safety, and physical conditions of the facilities and potential future maintenance and capital costs.
Operations/Maintenance , Physical Asset Appraisal , Waterborne/Marine
Condensate Gathering System Due Diligence
Assisted client with engineering due diligence on a Texas condensate gathering system focusing on pipeline mechanical integrity issues.
Industry Practice/Standard of Care , Physical Asset Appraisal , Pipeline
Refining and Marketing Privatization
Assisted a state-owned integrated oil company in Central Europe in completing a strategic planning study for its downstream refining and marketing business. The study considered potential markets and pricing for crude oil and refined products. Opportunities to optimize the operation and logistics of the company's refining and marketing system were evaluated in view of maximizing the value of the assets prior to privatization.
LP/Planning Practice , Physical Asset Appraisal
Reformulated Gasoline Study
Provided a large independent Southern California refiner an assessment of their existing processing equipment, outside feedstocks to be purchased, and new capital investment necessary to produce reformulated gasoline for consumption in the most regulated gasoline market in the world.
Physical Asset Appraisal , Product Quality , Project Feasibility
Terminal Facility Valuation
Reviewed the operating results and management projections for a terminal and transmix processing facility to develop an income-based valuation for the business enterprise. This engagement was one of a series of valuations prepared by Baker & O'Brien to support the financing requirements for this business since its inception.
Physical Asset Appraisal , Pricing
Privatization of Olefins Plant
Evaluated an olefins plant for competitiveness in operating costs, yields, feed supply, and product marketing. Identified and documented strengths and weaknesses and presented the key initiatives, which would be needed to ensure a successful transaction. Estimated the fair market value.
Operations/Maintenance , Physical Asset Appraisal , Product Quality
Product Terminal and Transmix Processing Valuation
Physical asset appraisal and business valuation of a refined product terminal and transmix processing facility. Estimated the replacement cost and deferred replacement value of the physical assets to provide a depreciation basis for taxes. Valued the business enterprise using a discounted cash flow approach based on an analysis and projection of transmix processing and product terminal activities.
Physical Asset Appraisal
Product Pipeline and Terminal Valuation
Prepared a valuation of a pipeline and related terminal associated with client's refinery. The valuation was used by the client for accounting and tax allocation purposes.
Physical Asset Appraisal , Pipeline
Independent Engineer for New Refinery in Egypt
Technical due diligence for financing of a 200,000 B/D merchant export refinery in Egypt. Our review included opinions on site selection, owner's development plan, supply agreements, offtake agreements, EPC Contracts, refinery unit technologies including sulfur recovery, 'over-the-fence' utility interface, crude oil supply and product export terminal facilities. Our review also included opinions on environmental compliance, licenses and permits, CAPEX, construction schedule, completion risk, OPEX and technical comment to the financial model .
Commercial Terms Review , EPC-related , Physical Asset Appraisal
Product Pipeline Terminal Valuation
Prepared a terminal valuation based on a discounted cash flow analysis of transmix and terminal businesses and an appraisal of the physical assets.
Physical Asset Appraisal , Pipeline
Polypropylene Plant Due Diligence Support
Provided technical due diligence support for a moth-balled polypropylene plant. Evaluated capacity, historical utilization and mechanical availability and other factors.
Operations/Maintenance , Physical Asset Appraisal
Chemical Plant Fire Repair
Provided technical advice and consultation for recommended repair procedures for vessels and piping damaged in a chemical plant fire. 
EPC-related , Physical Asset Appraisal
Strategic Review of Refining Portfolio
For a large integrated refiner and marketer, assessed the historical performance of each refinery in the company's system, and evaluated key benchmark metrics against various selected peer groups. Reviewed each refinery's competitive position and highlighted the key factors that differentiated its performance. Quantified the performance gaps on a dollar-per-barrel basis, attributed the gaps to controllable or structural factors, and made recommendations for improving the controllable gaps.
PRISM Data or Analysis , Physical Asset Appraisal
Refinery Valuation for Ad Valorem Taxes
Developed a cost approach estimate for the valuation of process units at a U.S. Gulf Coast Refinery.  Calculated a replacement cost new for the process units and adjusted for physical depreciation, functional obsolescence, and economic obsolescence to arrive at a physical asset value for the refinery's process units. 
Ad Valorem Taxes , Physical Asset Appraisal
Refinery Equipment Valuation
Determined the estimated market value of idle refinery equipment that was designated as loan collateral.  Prepared a report valuing the equipment under different sales scenarios including as an entire refinery, by individual process units, by individual equipment item and as scrap value.
Physical Asset Appraisal
Asphalt Refinery Dispute
Provided analyses on locating an asphalt refinery on a property and expert witness deposition testimony involving the construction of an asphalt refinery.
Operations/Maintenance , Physical Asset Appraisal
Terminal Due Diligence
Provided technical due diligence support for a large terminal acquisition opportunity involving approximately 50 terminals, 700 tanks, and 30MMbbls of storage.
Operations/Maintenance , Physical Asset Appraisal , Pipeline , Waterborne/Marine
Potential Refinery Acquisition
On behalf of a prospective buyer, evaluated a Northern European refinery as a potential acquisition target.  Determined the current physical condition of the refinery, its existing processing capability, and the potential for expansion and upgrade.  Developed an economic and financial model that was used by client to prepare its tender offer.
Physical Asset Appraisal
Refinery Due Diligence
Evaluated the condition of refining assets for a potential acquisition.  Addressed any "fatal flaws" regarding acquisition and start-up of topping refinery.  Provided support for evaluating order-of-magnitude costs estimate required to inspect, repair, staff, and start up the complex. 
Operations/Maintenance , Physical Asset Appraisal
Refinery Environmental Review
Reviewed and reported on potential environmental solid waste issues associated with a large idled refinery in support of a client's bid for the facilities. Performed an on-site inspection of the refinery to identify potential environmental risks.
Environmental , Operations/Maintenance , Physical Asset Appraisal
Crude Oil Supply Contract Dispute
Provided an expert report for a crude oil supplier who lost its contract to a refiner.  Provided a valuation versus alternative crude oils as to the value of the cancelled crude oil supply contract.  Dispute settled prior to trial.
Expert Witness/Testimony , Physical Asset Appraisal , Waterborne/Marine
Refinery Design Review
Grassroots refinery was to be a modular-fabrication with an on-site assembly on a greenfield site in North East Africa.  Due to the characteristics of the crude oil (heavy, waxy and high naphthenic acid content), process design included Visbreaker-type technology.  An evaluation was made of the process design and the project economics. 
Physical Asset Appraisal , Pipeline , Product Quality , Project Feasibility
Refinery Economic Study
Evaluated various strategic options for a small Rockies area refinery, including an evaluation of a new diesel hydrotreater, refinery crude and product slate optimization, operating cost evaluation, and exit strategy and shutdown costs.  Refinery was shut down due to the small refinery ULSD exemption that was expiring.  Client wanted to evaluate the impact on the competitiveness of the refinery of adding a new diesel hydrotreating unit.
Physical Asset Appraisal , Project Feasibility
Gas Recovery Unit Valuation
Prepared a fair market valuation assessment of a leased refinery gas recovery process unit located within a refinery.  Visited the site and assessed the overall condition of the asset.  Applied a cost approach to value the asset.  The valuation was used by the client to negotiate a buy-out of the leased process unit.
Physical Asset Appraisal
Transmix Facility Due Diligence
Completed technical, financial, and operational due diligence analysis on behalf of lenders for an existing transmix processing facility and associated terminal.  Tasks included inspection of facilities, assessment of competitive market position, and an evaluation of a new hydrotreater project for ULSD production.
Commercial Terms Review , Operations/Maintenance , Physical Asset Appraisal , Project Feasibility
Oil Company Due Diligence
Retained to visit data room and prepare due diligence report summarizing facilities and environmental information for multiple oil fields and an oil processing and export terminal. 
Industry Practice/Standard of Care , Physical Asset Appraisal
Terminal Due Diligence
Performed a technical due diligence of a Gulf Coast refinery tank farm and associated transfer pipelines for a prospective investor.  Reviewed inspection and maintenance records of the assets during a site visit.  Reviewed numerous operating performance documents from a data room.  Prepared a technical due diligence report outlining our findings.
Operations/Maintenance , Physical Asset Appraisal
California Terminal Due Diligence
Assisted midstream buyer with valuation of a large Northern California petroleum terminal.  Delivered market study presentation to company management to assist in due diligence and valuation using market metrics.
Physical Asset Appraisal