The Impact of COVID-19 on Adjusted EBITDAX: Key Considerations for Oil & Gas
Ext. Publication
Featured in NAPE Magazine, Weaver’s Brian Reed, Partner, Financial Advisory Services, shares his insight on why companies may want to adjust the way quality of earnings are assessed in the oil and gas industry post-COVID.
July 20, 2021
Featured in NAPE Magazine, Weaver’s Brian Reed, Partner, Financial Advisory Services, shares his insight on why companies may want to adjust the way quality of earnings are assessed in the oil and gas industry post-COVID.
- The economic effects of the COVID-19 pandemic have made the assessment of acquisition targets in the oil and gas industry a more uncertain and challenging process. Companies in the industry are no strangers to its cyclical nature, but the disruption caused by COVID-19 is different. The pandemic produced many irregular and non-recurring costs as well as unprecedented decline in global demand that could distort an acquisition target’s reported earnings. For oil and gas companies, assessing the impact of the pandemic involves determining which changes will last and which will pass when the effects of the pandemic subside.
© 2021