Energy Valuation Insights

A weekly update on issues important to the oil and gas industry

Eagle Ford Shale Mergers, Acquisitions, & Divestitures

Eagle Ford Benefits From Commodity Price Increases Despite Challenges

The economics of oil and gas production vary by region. Mercer Capital focuses on trends in the Eagle Ford, Permian, Bakken, and Marcellus and Utica plays. The cost of producing oil and gas depends on the geological makeup of the reserve, depth of reserve, and cost to transport the raw crude to market. We can observe different costs in different regions depending on these factors. This quarter we take a closer look at the Eagle Ford.

Special Topics

Mineral Aggregator Valuation Multiples Analysis

Market Data as of March 12, 2021

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. Check out our report in this post.

Eagle Ford Shale Mineral and Royalty Rights Special Topics

Held by Production

Oftentimes differences are a matter of perspective. Put another way – one person’s loss can be another person’s gain.  One of the thematic differences between producers and mineral owners is their perspective on “Held By Production.”  It elicits very different reactions depending on what side of the term one is on, and has a leverageable impact on value.   With rig counts dropping to around half of last year’s count, how much acreage will be available for re-leasing this year?  In this post, we decided to spend some time exploring this concept and its impact on the energy industry.

Special Topics

Optional Insights on Valuing PUDs and Unproven Reserves

Public transactions do not disclose the value associated with PUDs and unproven reserves, but instead, they indicate an aggregate value for a bundle of assets.  The allocation of that value across the various assets acquired is up for debate.  Recent transaction sheds some light on asset pricing in the current environment.

Oil & Gas

Mercer Capital provides oil and gas companies, oil and gas servicers, and mineral & royalty owners with corporate valuation, asset valuation, litigation support, transaction advisory, and related services