Energy Valuation Insights

January 29, 2018 Special Topics Valuation Issues

What Is a Reserve Report?

A reserve report is a fascinating disclosure of information. This is, in part, because the disclosures reveal the strategies and financial confidence an E&P company believes about itself in the near future. Strategies include capital budgeting decisions, future investment decisions, and cash flow expectations. This is the first of multiple posts discussing the most important information contained in a reserve report, the assumptions used to create it, and what factors should be changed to arrive at Fair Value or Fair Market Value.

January 22, 2018 Marcellus and Utica Shale

M&A in Appalachia: Moving Day in the Neighborhood

This week we look back at transaction activity and trends in the Marcellus & Utica plays in 2017. When we reflect about what happened, for whatever reason, images resembling something out of an episode of Desperate Housewives come to mind whereby the prying eyes of the marketplace peer out of their windows, surveilling old competitors that pack up and leave whilst new, and sometimes mysterious, neighbors move in. Read more about it here.

January 15, 2018 Marcellus and Utica Shale

Economics of Drilling in the Marcellus & Utica

The economics of oil and gas production vary by region. 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. This post focuses on the economics in the Marcellus and Utica plays.

January 8, 2018 Domestic Production

What a Steady Oil and Gas Industry in 2017 Points to in 2018

“Steady as she goes.” At least that is what I think all captains of most vessels say…except maybe a car. For captains navigating the 2018 oil and gas industry, a repeat of 2017’s relatively calm waters is vocal wish. In this post, we review the past year for insight into what the new year may hold.

December 18, 2017 Bakken Shale

A Tale of Two Bakkens: Cashing Out or Doubling Down

Transaction activity in the Bakken shale was both busy and revealing in the second half of 2017.  Many of these deals marked the departure of a number of companies that were known to be active in the play, particularly Halcon Resources. Other companies, however, have remained. This post digs deeper into this.

December 11, 2017 Special Topics Valuation Issues

WTI Futures and Inventories

In this post we address why the shift in oil futures from contango pricing to backwardation is a bearish sign for those in crude oil storage.

December 4, 2017 Special Topics

Current Regulatory Environment Affecting the Oil and Gas Industry

As business valuation experts, we have to consider the outlook for the economy, industry, and business in every valuation; therefore, we pay attention to the oil and gas regulatory environment to assess what it means for our clients.  Given the new administration, there is much to consider.

November 27, 2017 Mineral and Royalty Rights

How to Value an Oil & Gas Mineral Royalty Interest

This blog post summarizes our whitepaper that provides an informative overview regarding the valuation of mineral royalty interests within the oil and gas industry.  While there are a myriad of factors (mostly out of a royalty holder’s control) impacting the economics of a royalty interest, this blog post focuses on valuation methodology.

November 21, 2017 Mineral and Royalty Rights Special Topics

Underpayments, Overpayments, Lost Opportunities and Bankruptcies: Trends and Happenings in Energy Litigation

Royalty underpayment cases are anticipated to remain steady in the current pricing environment.  There is an understandable tension between mineral owners’ concern over shrinking payments and operators’ concern over profitability and favorable drilling economics.

November 14, 2017 Special Topics

5 Takeaways from NARO Appalachia’s Annual Conference

Taryn Burgess recently attended the National Association of Royalty Owners (NARO) Appalachia Chapter Annual Conference in White Sulfur Springs, West Virginia.  Over the two day conference, speakers addressed many topics including certain aspects of lease agreements, current legislation affecting mineral owners, clean water solutions, clean energy programs, legal issues affecting mineral owners, midstream and storage development, and more. Here is an overview of five key takeaways from the conference.