The client was a publicly-traded diversified oil & gas company with operations including exploration and production, drilling services, and gathering and transportation services. Due to the recent challenges experienced by the oil and gas industry in general, as well as the impact of COVID-19 on oil and gas demand and commodity prices, the company filed for Chapter 11 bankruptcy protection in 2020. The company successfully emerged out of Chapter 11 bankruptcy as a reorganized private entity with a much stronger balance sheet upon emergence. As part of the Chapter 11 process and emergence, Stout was engaged by the company to calculate the reorganization value and the fair value of the company's various assets, including oil and gas reserves, drilling assets and associated equipment, pipeline and processing assets, and real property, including right of way assets. In addition, Stout also calculated the fair value of certain securities issued by the company at emergence. Stout's valuation was performed under Financial Accounting Standards Board Accounting Standards Codification ("ASC") Topic 852, Reorganizations, and related accounting promulgations, including ASC Topic 805, Business Combinations, and ASC Topic 820, Fair Value Measurement. Stout's analysis was utilized by the company to satisfy its financial reporting requirements upon emergence.

Stout's valuation team comprising approximately 20 members across various disciplines worked over a several month process with the company's accounting, finance, and operations teams. In addition, Stout collaborated with various other advisors of the client engaged through the bankruptcy process, including accounting, financial and legal advisors. Stout's valuation was also reviewed by the company's auditor as part of the financial reporting process.

Given the challenging conditions faced by oil & gas companies, Stout has been actively involved with various industry participants (including some of the largest oil & gas companies filing for Chapter 11 bankruptcy protection and reorganization in 2020) in performing valuations related to fresh-start accounting, and assisting such companies in successfully navigating the bankruptcy process and emerging with a stronger balance sheet.