ARO Cost Model
Estimating retirement obligation liability for an asset package or an entire company is a crucial, yet difficult to grasp aspect of scoping for A&D deals. LLR ratios and government calculated liabilities only tell half the story. ARO is a key aspect of risk management and a disciplined retirement strategy is essential for corporate financial planning.
Learn More About ARO
The ARO model was developed through a culmination of government resources, expert opinion and industry data. The baseline values were derived from government agency data and this was augmented by professional experience when warranted. The values have been benchmarked against multiple sets of operator records and will continue to be as more and more information becomes available. Professionals that contributed to the model include: