Accounting & Tax Services for Oil & Gas Companies
Oil and gas accounting is among the most specialized disciplines in the accounting profession. From depletion deductions and intangible drilling costs (IDCs) to production payment structures and working interest partnerships, the tax and accounting rules governing exploration, production, and mineral rights are highly technical and constantly evolving. Accounting Intelligence's oil and gas team brings deep Houston-market expertise serving upstream, midstream, and downstream companies, as well as royalty owners and mineral investors throughout the Permian Basin, Eagle Ford, and beyond.
The oil and gas industry benefits from significant tax preferences, including the percentage depletion deduction (available to independent producers and royalty owners), the immediate expensing of intangible drilling costs, and the enhanced oil recovery credit. Our CPAs identify and optimize every available deduction for our oil and gas clients, while managing the complex interplay of these provisions with the passive activity rules, at-risk limitations, and alternative minimum tax.
Working interest investors and mineral rights owners face unique K-1 reporting complexity, including depletion calculations, oil and gas basis tracking, and form 1099 NEC reconciliation for royalty income. Our team prepares accurate, complete returns and provides the supporting workpapers that ensure deductions will survive IRS scrutiny.
Oil & Gas Accounting Services
- Intangible drilling cost (IDC) accounting and deduction planning
- Depletion calculation (cost and percentage depletion)
- Working interest and royalty income tax reporting
- Joint interest billing and revenue distribution accounting
- Oil and gas partnership and LLC tax returns
- Mineral rights acquisition, sale, and exchange planning
- Texas severance tax compliance
Tax preparation and advanced tax planning are provided through Sanderson & Williams, PLLC.
