Stout assisted a midstream energy company with a valuation of their natural gas processing facility for insurance placement purposes. The facility had encountered delays during the construction process which resulted in significant cost overages. Insuring their state-of-the-art facility based on this overstated construction cost was proving costly for our client. Steeply rising insurance costs driven by hardening conditions in the property insurance markets further elevated the importance of determining an accurate replacement value for insurance purposes. Our valuation team developed a greenfield cost estimate as well as a construction cost benchmarking analysis as part of our valuation of this complex facility. Our client presented Stout’s analysis to their insurers and successfully acquired an appropriate amount of insurance for their facility, eliminating excess premium expenditures.