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Energy Valuation Insights

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Mineral and Royalty Rights

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.

Current Events Mergers, Acquisitions, & Divestitures Permian Basin

Viper-Sitio Transaction Signals Strategic Shift in U.S. Royalty Landscape

On June 3, 2025, Viper Energy, a subsidiary of Diamondback Energy, Inc., announced its plan to acquire Sitio Royalties in an all-stock transaction valued at approximately $4.1 billion. The acquisition includes Sitio’s roughly 34,300 net royalty acres, 25,300 of which are concentrated in the Permian Basin. The Viper-Sitio merger represents a notable shift in strategy within a traditionally fragmented sector. It signals a move toward greater scale, operational leverage, and investor confidence in the royalty business model.

Special Topics

Key Components in a Typical Oil & Gas Lease

When negotiating and drafting oil and gas leases, understanding the basic framework that governs these agreements is essential. These leases are created so that the property owner can maintain their mineral rights while simultaneously leasing their land to the oil & gas company. In this week’s post, we explore some key components of an oil and gas lease and how these contracts are constructed.

How to Understand Your Mineral Interests

We frequently receive calls from mineral interest owners who know little about what they own other than the operator’s name on the check and the amount they receive each month. Besides just the amount paid by the operator, royalty checks provide valuable information to mineral owners that can help determine the value of their minerals. While some mineral owners may be very well attuned to decline curves and local pricing dynamics, others may only casually monitor the price of oil and gas to get a general sense of the trend in the industry. This week’s post serves as a guide to mineral and royalty owners seeking to learn more about what they own.

Domestic Production Energy Valuation Insights Mergers, Acquisitions, & Divestitures Special Topics

Shining Some Light on Four Overshadowed Oil and Gas Plays

Uinta Basin, Bakken Shale, DJ Basin, and SCOOP/STACK

This week, the Mercer Capital Oil and Gas team highlights four popular, but less talked about oil and gas plays: the Uinta Basin, Bakken Shale, DJ Basin, and SCOOP/STACK. From the Uinta’s unique transportation challenges to the Bakken’s enduring output, the DJ’s infrastructure, and the SCOOP/STACK’s operational complexities, we explore their economic profiles and recent M&A activity.

Current Events

National Association of Royalty Owners (NARO) National Convention

This year’s National Association of Royalty Owners (NARO) National Convention was held in Houston and Mercer Capital’s Bryce Erickson, ASA, MRICS and David Smith, CFA, ASA had the privilege of attending.  NARO has represented the interests of oil and gas royalty owners for over 40 years, seeking to support, advocate and educate for the empowerment of mineral and royalty owners. In addition to offering beneficial education opportunities, the event served as a valuable networking opportunity, connecting mineral and royalty owners with fellow owners as well as professional service providers specific to these assets. In this week’s post, we recap the event and provide valuable educational resources for our readers.

Valuation Issues

What Does the Valuation Process Entail for an Oil and Gas Royalty Interest?

A lack of knowledge regarding the worth of a royalty interest could be very costly. This can manifest itself in a number of ways. A shrewd buyer may offer a bid far below the interest’s fair market value; opportunities for successful liquidity may be missed; or estate planning could be incorrectly implemented based on misunderstandings about value. Understanding how royalty interests are properly appraised will ensure that you maximize the value of your royalty, whenever and however you decide to transfer it.

Mineral Aggregator Valuation Multiples Study Released

With Market Data as of March 4, 2024

Mercer Capital has its finger on the pulse of the minerals market.  An important trend has been the rise of mineral aggregators, which have largely supplanted the trusts as the primary method of publicly traded minerals ownership.

Mineral Aggregator Valuation Multiples Study Released

With Market Data as of November 17, 2023

Mercer Capital has its finger on the pulse of the minerals market.  An important trend has been the rise of mineral aggregators, which have largely supplanted the trusts as the primary method of publicly traded minerals ownership.

Mineral Aggregator Valuation Multiples Study Released

With Market Data as of August 21, 2023

Mercer Capital has its finger on the pulse of the minerals market.  An important trend has been the rise of mineral aggregators, which have largely supplanted the trusts as the primary method of publicly traded minerals ownership.

Mineral Aggregator Valuation Multiples Study Released

With Market Data as of June 19, 2023

Mercer Capital has its finger on the pulse of the minerals market.  An important trend has been the rise of mineral aggregators, which have largely supplanted the trusts as the primary method of publicly traded minerals ownership.

Mineral Aggregator Valuation Multiples Study Released

With Market Data as of March 3, 2023

Mercer Capital has its finger on the pulse of the minerals market.  An important trend has been the rise of mineral aggregators, which have largely supplanted the trusts as the primary method of publicly traded minerals ownership.

Special Topics

Mailbox Money: Mineral Rights & Other Alternative Assets

In this 5-minute video, originally recorded for Mercer Capital’s Family Business On-Demand Resource Center, Bryce Erickson addresses the topic of oil and gas mineral/royalty rights. He explains what they are and what they aren’t, the basic framework and investment processes, and key drivers and risks associated with value.

Mineral Aggregator Valuation Multiples Study Released

With Market Data as of November 14, 2022

Mercer Capital has its finger on the pulse of the minerals market.  An important trend has been the rise of mineral aggregators, which have largely supplanted the trusts as the primary method of publicly traded minerals ownership.

In this updated Study, Mercer Capital has thoughtfully analyzed the corporate and capital structures of the publicly traded mineral aggregators to derive meaningful indications of enterprise value.  We have also calculated valuation multiples based on a variety of metrics, including distributions and reserves, as well as earnings and production on both a historical and forward-looking basis.

Mineral Aggregator Valuation Multiples Study Released

With Market Data as of August 15, 2022

Mercer Capital has its finger on the pulse of the minerals market.  An important trend has been the rise of mineral aggregators, which have largely supplanted the trusts as the primary method of publicly traded minerals ownership.

In this updated Study, Mercer Capital has thoughtfully analyzed the corporate and capital structures of the publicly traded mineral aggregators to derive meaningful indications of enterprise value.  We have also calculated valuation multiples based on a variety of metrics, including distributions and reserves, as well as earnings and production on both a historical and forward-looking basis.

Mineral Aggregator Valuation Multiples Study Released

With Market Data as of May 12, 2022

Mercer Capital has its finger on the pulse of the minerals market.  An important trend has been the rise of mineral aggregators, which have largely supplanted the trusts as the primary method of publicly traded minerals ownership.

In this updated Study, Mercer Capital has thoughtfully analyzed the corporate and capital structures of the publicly traded mineral aggregators to derive meaningful indications of enterprise value.  We have also calculated valuation multiples based on a variety of metrics, including distributions and reserves, as well as earnings and production on both a historical and forward-looking basis.

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Key Contacts

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Bryce Erickson, ASA, MRICS

(214) 468-8411

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J. David Smith, CFA, ASA

(832) 432-1011

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Andrew B. Frew, ASA, ABV

(832) 966-0345

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Sebastian S. Elzein

(469) 904-6718

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Derek P. Smith

(832) 966-0307

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