Corporate Valuation, Oil & Gas

December 12, 2016

Exploration & Production 3Q16 Newsletter | Region Focus: Bakken

Each quarter, Mercer Capital’s Exploration & Production Industry newsletter provides an overview of the E&P sector, including world demand and supply, public market performance, valuation multiples for public companies, and a region focus. This quarter we focus on the Bakken Shale.

Excerpting from the third quarter newsletter:

Oil prices trended up for the beginning of the third quarter but ended the quarter about where they started. For the last two years companies have postponed exploration activities and cut capital projects to drill new wells. Now that oil prices show signs of recovery, production has increased across the U.S. Although oil prices have increased slightly, oil and gas bankruptcies continued in the third quarter as 52 companies filed for bankruptcy. The majority filed for Chapter 11 protection in hopes to reorganize. Many of the firms that went bankrupt were smaller companies who had less flexibility to exchange debt or draw a second-lien. The price of crude oil is determined by market forces: supply and demand. In order to understand the current pricing environment, we analyze these metrics on pages 1 and 2 of the newsletter.

View the newsletter below or download the PDF.

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Getting Its DUCs in a Row: Appalachia Keeps the Gas Flowing
Getting Its DUCs in a Row: Appalachia Keeps the Gas Flowing
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Appalachian Basin Mergers and Acquisitions Update: October 2025 Through September 2026
Appalachian Basin Mergers and Acquisitions Update

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Appalachian Basin M&A activity from October 2025 through September 2026 featured a mix of large strategic asset trades, mineral and royalty acquisitions, and non-operated investments. The transactions highlight a broadening buyer universe and the importance of interpreting valuation benchmarks in light of differing asset structures and strategic considerations.
How Do Reserve Categories Affect Oil and Gas Valuation?
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Reserve categories influence oil and gas valuation through differences in recovery certainty, required capital, development timing, and exposure to execution risk. Understanding how PDP, PDNP, PUD, probable, and possible reserves differ helps support more defensible valuation assumptions and conclusions.

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