A weekly update on issues important to the oil and gas industry
Third-quarter commentary from E&P and oilfield service companies highlighted a cautious near-term outlook paired with growing confidence in long-term demand. While operators remain in “maintenance mode,” structural growth themes—LNG, data centers, offshore development, and water midstream—continue to shape strategy. Despite softer activity, companies emphasized free cash flow, efficiency, and positioning for stronger demand later in the decade.
Mercer Capital has its finger on the pulse of the minerals market. The most recent Mineral Aggregator Valuation Multiples Study is now available.
The Q3 2025 issue of Mercer Capital’s Exploration and Production Newsletter focuses on the Appalachia basin. Overall, the Appalachian basin enters late-2025 on firmer footing than a year ago, characterized by stable production, recovering equity performance, and improving infrastructure fundamentals. Continued progress on export capacity and incremental LNG demand should provide a constructive backdrop for basin economics heading into 2026. Read more in this week’s post.
Permian oil producers struggle for growth as gas peers surge on LNG demand and power generation optimism heading into 2026.
The oilfield water sector is rapidly becoming a cornerstone of the energy value chain. Rising water volumes, tightening disposal capacity, and increasing costs are reshaping production economics and investment priorities. At the same time, emerging links between produced water and AI infrastructure highlight new opportunities at the intersection of energy, technology, and sustainability.
Mercer Capital is pleased to announce the release of the 2025 Energy Purchase Price Allocation Study. This study researches and observes publicly available purchase price allocation data from companies primarily contained in one of the four sub-sectors of the energy industry: (i) exploration & production; (ii) oilfield services; (iii) midstream; and (iv) downstream. This study is unlike any other in terms of energy industry specificity and depth.
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.
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.
Appalachian Basin deal activity may be quieter, but strategic bolt-ons and creative financing are redefining how value is built in a cautious market.
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.
