The 2022 Inflation Reduction Act (“IRA”) brought a great infusion of capital and interest in the development of renewable energy generation projects and domestic enterprises. Marshall & Stevens has been at the forefront of the renewable energy investment cycle since 2010.
We work closely with our clients, investors, counsel, and auditors to provide an analysis that best represents the latest guidance, case law, rulings, and interpretations for the monetization of investment tax credits (“ITC”), production tax credits (“PTC”), renewable energy credits (“RECs”), capacity payments, etc.
Renewable energy technology projects and enterprises valued include offshore and onshore wind, solar, geothermal, fuel cell, renewable natural gas, microgrids, and battery energy storage systems (“BESS”). Conventional energy projects include oil, gas, coal, and nuclear power plants as well as energy distribution systems and oil services companies.
Our top Energy Industry professionals include:
John Geraghty, Practice Leader, E&I: A structured finance expert, he has decades of experience in the financing, development, and valuation of energy projects. Prior to joining Marshall & Stevens in 2018, John held leadership roles at AT&T Finance, Vanguard Energy Partners, and Strata Solar.
Luke Liakopoulos, Managing Director, E&I: Specializing in the valuation of renewable energy generation and storage facilities of all sizes, Luke has held senior positions at Navigant Consulting, Mesirow Financial, and Alvarez & Marsal before rejoining Marshall & Stevens in January 2022
Darleen Armour, ASA, Managing Director & Technical Standards Leader, Financial Valuation: Leads all financial reporting and fairness opinion assignments for the E&I fund investors and sponsors. Her experience includes leadership roles at Houlihan Lokey Howard & Zukin, and BDO LLP before joining Marshall & Stevens in 2015.
Fernando Sosa, ASA, MRICS, Director, E&I: His energy project valuation and cost segregation experience includes work for Alpha Power, and CohnReznick, LLP prior to rejoining Marshall & Stevens in 2023. Fernando has a great deal of repowering and tax appeal experience.
Doug Van Wickler, Senior Director, Real Estate: Experienced in the valuation of owned and leased land including easements, port facilities in support of offshore wind, and other special purpose properties. Doug joined Marshall & Stevens in 2013.
Tyler Feld, Vice President, MS Capital, Senior Manager, E&I: Provides renewable energy project finance valuation and transaction consulting. Started his valuation career with Marshall & Stevens in 2015.
Marshall & Stevens has deep experience with the multiple value opinions required for structured finance transactions (leases, sale leaseback, tax equity investments, etc.) including the treatment of tax and production incentives. Attorneys and investors refer their energy industry clients to Marshall & Stevens for independent value opinions that meet the complex requirements of their transactions and the energy industry.
In general, we engaged to value businesses, equity, debt, assets, and projects in support of financing, fund reporting and transactions, financial reporting, tax reporting, repowering, insurance placement, and dispute. Typical assignments include:
- Independent Fairness Opinions in support of related party (fund to fund) and third-party transaction.
- Valuation of projects and related assets for financing purposes (debt, equity, lease, sale leaseback), residual value analyses andshareholder dispute.
- Purchase price allocations (ASC 805 and IFRS 3) in support of business combinations and asset acquisitions.
- Fair value of fund investments for infrastructure funds and development companies.
- Valuation of equity compensation (stock options, etc.) for compliance withIRC 409a & ASC 718.
- Tax reporting including cost segregation, property tax (ad valorem) reporting and dispute, corporate tax restructuring, and repowering.
- Energy & Infrastructure advisory services supporting mergers & acquisitions, offtake advisory, tax equity advisory, and energy transition.
- Valuation of projects and assets for bankruptcy/restructuring/recapitalization.
- Buy/sell/fair lease rates for real estate.
- In 2023 we valued a lithium mine for a deSPAC transaction.
The valuation of a regulated utility incorporates the understanding of the limitations under which these entities must work. Regulated utilities earn revenue through an allowed “return of” and a “return on” their investments. The Federal Energy Regulatory Commission (FERC) and respective state regulatory commissions establish the rates that a utility may charge predicated upon the cost-of-service model.
Our team has experience in valuing capital intensive regulated companies and assets. Through its energy sector experience, our professionals understand the capital-intensive nature of such assets with capital reinvestment and rates of return generally being based on the respective commissions’ perceptions of the cost of debt capital and the cost of equity capital. Analytic valuation techniques for the subject regulated assets would be driven by:
- Subject return rate and capital expenditure analysis
- Rate case analysis and return trends
- Comparative market analytics to and valuation based on publicly-traded investor-owned utilities and guideline transactions, as well as discounted cash flow valuation at appropriate market extracted capital costs and financing assumptions
Our clients include corporations, municipalities, utilities, foreign-backed and domestic developers/sponsors, domestic and international financial institutions, and infrastructure funds.
Examples of our experience can be found on Year In Review Page. For more information about our services, please contact one of the professionals listed below.