Energy Valuation Insights

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

Special Topics

Themes from Q4 2022 Earnings Calls

Part 1: Upstream

This week we focus on the key takeaways from the Upstream Q4 2022 earnings calls, which include buyback and distribution policies, organic growth opportunities, and an outlook for the rest of 2023.

Special Topics Valuation Issues

Understanding Oilfield Services Companies & How to Value Them

Understanding the value of an oilfield services (OFS) company is by its very nature, a complex matter. The unpredictable cyclicality of the oilfield services industry requires careful consideration of many industry-wide and company-specific factors in developing a reasonable forecast of future operating results. In our blog this week we feature a whitepaper that provides invaluable guidance in regard to these aspects of the OFS industry.

Special Topics Valuation Issues

Are You Ready for the Next Recession?

What 2023 Might Have in Store

As we have now put a bow on 2022 and have turned our attention to 2023, we suspect that the dreaded “R word” is on the mind of many of our readers as they contemplate the myriad challenges and obstacles their businesses will face in 2023. Now is the time to think critically about how your business is positioned for a potential economic slowdown. This post offers a few practical steps business owners, directors, and their advisors can take to ensure their business continues to thrive.

Marcellus and Utica Shale

Value Focus | Exploration & Production

Fourth Quarter 2022 | Region Focus: Appalachian Basin

In this quarter’s newsletter, we focus on the Appalachian. Notable topics include Russia-Ukraine War’s effect on the demand for LNG exports to Europe in the face of winter, tight valuations between major operators, flat production levels in the region despite a high commodity price environment, as well as increased M&A activity in 2022 highlighted by Sitio Royalties and Brigham Minerals merger — creating the largest public minerals owner.

Special Topics

All in the Family Limited Partnership

In this week’s post, we share a recent piece from our Family Business Director blog on the topic of Family Limited Partnerships. While the post speaks directly to family-owned businesses, the content is applicable to many because the individual estate tax exemption reverts to $6 million in 2026 from its current level of $12 million. As a result, many estates are beginning to plan now.

Marcellus and Utica Shale

Appalachian Production Holds True Despite Market Disruptions

The economics of Oil & 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 Marcellus and Utica shales.

Marcellus and Utica Shale Mergers, Acquisitions, & Divestitures

M&A in Marcellus & Utica Basins

Shareholder Value Creation Abounds; ESG Interest Waning

M&A transaction activity in the Marcellus & Utica shales increased in 2022 relative to 2021, with large industry players motivated by free cash flow growth and creating shareholder value and less motivated by championing the ESG cause. In this week’s post, we examine the two largest transactions that occurred in but were not limited to the Marcellus and Utica shales in 2022.

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