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Update on Oil & Gas Royalties Litigation-Key Valuation Issues

Value Scope

The Asset-Based Approach. This approach is not useful for determining the value of royalty interest, and we do not use it. The Market Approach. The market approach uses comps, both trading and transaction. However, they usually are not available, so the market-based approach is often not useful.

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Update on Oil & Gas Royalties Litigation-Key Valuation Issues

Value Scope

Well Economics Financial & Strategic Condition of Operator Working Capital Leverage Capital Budgeting and Drilling Plans Break-even Analysis Post-production deductions The Asset-Based Approach This approach is not useful for determining the value of royalty interest, and we do not use it.

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Discounted-Cash-Flow-Analysis: Your Complete Guide with Examples

Valutico

Context of DCF: There are three main approaches to calculating a company’s value. the intrinsic or income-based approach, also known as an entity approach, then there is also 2. the asset-based approach also known as the cost-based approach, and finally 3. The first is 1.