Energy Valuation Insights

October 24, 2025 Special Topics Valuation Issues

Whitepaper: How to Value Your Exploration and Production Company

For this week’s post, we’re highlighting our whitepaper, “How to Value Your Exploration and Production Company.” The piece provides a comprehensive overview of the key factors that drive value in the upstream oil and gas sector, offering readers a clear framework for understanding how operational performance, reserve economics, and commodity pricing influence company worth. It also explores core energy valuation methodologies—including cash flow analysis, reserve-based approaches, and market benchmarking—to help executives, investors, and advisors navigate the complexities of assessing value in a constantly evolving energy market.

October 17, 2025 Current Events Energy Valuation Insights

Appalachian Basin Finds Its Footing

Appalachian production improved modestly over the past year, with steady drilling activity and enhanced infrastructure driving a 6% increase despite subdued natural gas prices. The Mountain Valley Pipeline’s completion provided much-needed takeaway capacity, improving flow reliability and narrowing basis differentials. Public operators like EQT and Range Resources led performance gains, reflecting a stabilizing investment environment as the basin moves toward 2026 with firmer fundamentals and growing exposure to LNG export opportunities.

October 10, 2025 Mergers, Acquisitions, & Divestitures

Appalachian Basin M&A Update: October 2024 to September 2025

A Quiet Consolidation Phase

Appalachian Basin deal activity may be quieter, but strategic bolt-ons and creative financing are redefining how value is built in a cautious market.

October 6, 2025 Special Topics Valuation Issues

Upstream Valuation Through a Lender’s Lens

What Credit Analysts See

Equity markets reward growth, but lenders value discipline. Viewing upstream performance through a credit analyst’s lens reveals how scale, costs, reserves, and prudent leverage drive both credit strength and enterprise value.

September 19, 2025 Special Topics

Hart Energy’s A&D Strategies and Opportunities Conference Recap

At Hart Energy’s 2025 A&D Strategies and Opportunities Conference in Dallas, two central themes emerged: the maturation of Tier 1 U.S. shale inventory and diverging dynamics between private and public players in dealmaking. The conference highlighted the evolving dynamics of the U.S. upstream oil and gas market.  With Tier 1 shale assets maturing, private and public participants are behaving differently, and deal strategies have become more selective. Read more in this week’s post.

September 12, 2025 Current Events Special Topics

The One Big Beautiful Bill Act: Implications for U.S. Oil & Gas Valuations

The One Big Beautiful Bill Act (OBBB) brings sweeping changes to the U.S. oil and gas industry. By revising tax rules, restoring leasing predictability, and lowering royalty rates, the Act reshapes project economics and carries significant implications for valuation and long-term investment.

August 28, 2025 Mineral and Royalty Rights

Mineral Aggregator Valuation Multiples Study Released

With Market Data as of August 26, 2025

Mercer Capital has its finger on the pulse of the minerals market. The most recent Mineral Aggregator Valuation Multiples Study is now available.

August 22, 2025 Current Events Special Topics

Themes from Q2 2025 Earnings Calls

Disciplined Capital Allocation Meets International Opportunity Amid Domestic Uncertainty

Q2 2025 earnings calls reflected an industry still guided by discipline but open to opportunity. OFS providers and E&P companies alike reiterated their focus on returning capital to shareholders and preserving balance sheet strength, while also pointing to selective international and offshore growth initiatives. The result is a sector cautious about near-term pricing and activity levels in North America, yet strategically positioning for selective long-term expansion. Read more in this week’s post.

August 15, 2025 Special Topics Valuation Issues

Why E&P Companies Need a Quality of Earnings Analysis

The Dallas Fed Q2 Energy survey highlighted the growing uncertainty and continued pessimism in management sentiments across the sector. Given the concerns shared about the future of the oil and gas markets, it is more important than ever for a potential seller to be able to provide potential buyers with a clear picture of the company’s capacity for generating cash flows. In this week’s post, we highlight the value of a Quality of Earnings (QofE) analysis in the transaction process.

August 8, 2025 Permian Basin

Just Released: Q2 2025 Oil & Gas Industry Newsletter

Regional Focus: Permian

The Q2 2025 issue of Mercer Capital’s Exploration and Production Newsletter focuses on the Permian. The Permian basin continues to serve as the centerpiece of the U.S. shale revolution. However, the basin will face challenges in the near future as rising water and associated gas content are contributing to increased production costs, leading to more cautious drilling plans for basin operators.