Introduction

In this article, we consider the uses and limits of the "Adjusted Book Value" (ABV) method for valuing an energy business in arbitration disputes. As explained more fully below, the Adjusted Book Value method may be suitable to value a variety of energy enterprises; start-up companies in the early stages of developing a project, holding companies, asset-intensive businesses like Exploration & Production (E&P) companies and, unfortunately, energy companies that may no longer be viable operating companies.