Energy Valuation Insights

May 16, 2025 Valuation Issues

Oilfield Services Companies and How To Value Them

Following our post last week in which we covered the latest changes and trends facing oilfield services (OFS) companies, this week we focus on how to value these companies. Understanding the value of an oilfield services (OFS) company is by its very nature a complex matter. Having a firm grasp on the many similarities and distinctions between these businesses is crucial for performing valuations. In our whitepaper, Understanding Oilfield Services Companies & How to Value Them, we provide invaluable guidance in regard to these aspects of the OFS industry.

May 9, 2025 Current Events Special Topics

Oilfield Services Update for 2025

In our Energy Valuation Insights from recent weeks, we addressed the challenges facing U.S. O&G drillers and covered the uncertainty in the overall O&G sector due to shifting world trade patterns. This week, we look at some of the same themes and how they are affecting in the Oilfield Services (OFS) industry. In particular, we cover changes related to the recent recovery in activity level, the influences of technological advances, the push for energy independence, and expectations going forward.

May 2, 2025 Eagle Ford Shale Mergers, Acquisitions, & Divestitures

Just Released: Q1 2025 Oil & Gas Industry Newsletter

Regional Focus: Eagle Ford

The Q1 2025 issue of Mercer Capital’s Exploration and Production Newsletter focuses on the Eagle Ford. Despite a notable rig count decline, Eagle Ford production generally remained about flat over the twelve months ended March 2025. Modestly declining commodity prices combined with the formation’s falling rig count pushed the region’s benchmark groups’ stock prices into single-digit declines over the review period. Although M&A activity in the Eagle Ford remained minimal, with only two material transactions over the last twelve months, the Eagle Ford remains the most fragmented of the major unconventional plays and provides substantial opportunities to build via acquisition.

April 25, 2025 Current Events Special Topics

Uncertainty Rules the Day

Oil Markets Bewildered as World Trade Patterns Shift

Oil markets and energy companies are wrestling with understanding changes in domestic and international energy markets. As company outlooks become cloudier, uncertainty is on the rise. This has been developing for several weeks now, with some early indications showing that executives and investors don’t quite know how to respond yet. It appears it is going to take time for oil companies to figure out what to do next.

April 18, 2025 Eagle Ford Shale

Eagle Ford Production Edges Downward Again on Reduced Drilling

The economics of oil & gas production vary by region.  Mercer Capital focuses on trends in several plays including the Eagle Ford, Permian, Haynesville, and Marcellus and Utica.  In this week’s post, we take a closer look at the production and activity, commodity prices, and financial performance of the Eagle Ford.

April 11, 2025 Eagle Ford Shale Mergers, Acquisitions, & Divestitures

Where Have All the Eagle Ford Deals Gone?

Over the past 12 months, deal activity in the Eagle Ford remained stagnant, with only two pure Eagle Ford Shale deals closing compared to two transactions closed in the prior 12-month period. The slowdown in M&A activity in the Eagle Ford over the past two years might be ahead of a global slowdown in upstream M&A activity. According to Rystad Energy, global M&A activity this year is expected to fall short of the highs seen over the past two years, as the major wave of consolidation in the U.S. shale sector has largely run its course. In this week’s post, we review the latest transactions in the Eagle Ford and what this may mean for M&A in the industry in 2025.

April 4, 2025 Current Events Domestic Production

Challenges for U.S. Drilling Amid Tariff Uncertainties

As in most other industries, President Trump’s tariff policy has created uncertainties for oil and gas businesses, where there is reduced confidence in the stability of commodity prices and the economics for drilling. On April 2nd, Trump announced a 10% across-the-board tariff and additional tariffs on China, the European Union, and Japan. Although energy commodities are exempted from these tariffs, U.S. hydrocarbons are still subject to risks from likely retaliatory tariffs and a slowdown in global economic growth. Ultimately, drilling and capital spending decisions are more challenging and complex for U.S. producers, which can be expected to keep their drilling spending restrained and production growth muted in the near term. 

March 28, 2025 Mineral and Royalty Rights 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.

March 21, 2025 Current Events Domestic Production

U.S. LNG in 2025

The Future is Bright, Though with Potential Headwinds

Expectations for the LNG industry in 2025 were modestly positive before the November 2024 U.S. elections but are notably more robust with the transition from the decidedly pro-green/renewable, anti-carbon energy Biden administration to the decidedly pro-American energy dominance Trump administration. However, as always true of domestic commodity markets subject to international market influences, the outlook for the U.S. LNG industry in 2025 is tempered by a number of potential domestic, international, and geopolitical pressures that could hamper actual results relative to expectations. We take a look at the future of U.S. LNG in this week’s post.

March 14, 2025 Mineral and Royalty Rights

Mineral Aggregator Valuation Multiples Study Released

With Market Data as of March 12, 2025

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