Desert Peak Minerals and Falcon Minerals Corp. required sophisticated technical advisory to execute a transformative merger, resulting in the creation of Sitio Royalties Corp. The goal was to establish a shareholder returns-driven company focused on the large-scale consolidation of high-quality oil and gas mineral and royalty interests.
The transaction introduced significant technical accounting challenges, specifically due to the novel "Up-C" structure, which required absolute transparency and precision for capital market disclosure. The clients faced a compressed timeline to file preliminary proxy statements while addressing rigorous oversight from external auditors and the SEC. They required a partner with deep senior-level expertise in energy to harmonize valuation, tax implications, and financial reporting under one integrated framework.
Opportune rapidly deployed a cross-functional team across Valuation, Tax, and Complex Financial Reporting to provide an end-to-end regulatory solution. Our Valuation experts modeled and optimized the pre-close analysis, reviewing management’s internal valuations and benchmarking against recent comparable transactions for pro forma accuracy.
Simultaneously, our Complex Financial Reporting team structured and implemented the pro forma financial statements and footnotes, including the Standardized Measure of Oil and Gas (SMOG). To ensure full compliance with regulatory guidelines, Opportune worked in tandem with management to integrate feedback from the SEC and external auditors, ensuring all transaction economics were accurately reflected. Our Tax professionals optimized the disclosure by analyzing the implications of the Up-C structure, utilizing data from the valuation and reporting teams to determine the proper tax-oriented financial amounts required for SEC transparency.
When you choose Opportune, you gain access to seasoned professionals who not only listen to your needs, but who will work hand in hand with you to achieve established goals. With a sense of urgency and a can-do mindset, we focus on taking the steps necessary to create a higher impact and achieve maximum results for your organization.
