A weekly update on issues important to the oil and gas industry
Trump’s nominations suggest that the upcoming presidential term will provide a friendly oil and gas environment. While it is unclear what the President-elect’s plan is for the RFS program, it is likely that he will face challenges balancing farm and oil interests.
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.
Royalty trusts, like the rest of the oil and gas industry, have been hit hard. In this post, we examine their performance over the last couple of years and consider the impact of bankruptcy.
As the calendar year draws to a close, many private companies consider the issue of dividends and dividend policy. Originally published in his book, Unlocking Private Company Wealth, Z. Christopher Mercer, FASA, CFA, ABAR provides an introduction to dividends and dividend policy. He begins with the obvious observation that no matter how informal, your company has a dividend policy.
One of the most commonly taught Bible stories is the miracle of Jesus feeding five thousand people with only five loaves of bread and two fish. Last week we learned of a new miracle story of never ending sustenance. The Permian Basin, which has been drilled since the 1920s and produced billions of barrels of oil, was discovered to hold the largest unconventional crude accumulation in the US.
Over the past few weeks, we have discussed the increase in M&A activity in the Permian and looked at specific characteristics that make the Permian attractive in a low price environment. Today, we take a step back and review the broad characteristics of the Permian Basin.
Government at all levels (federal, state & local) impacts the energy industry. Whether it be overarching regulation at the Department of Energy, fracking bans in New York state, or local permitting issues – it impacts production, economics, and strategy. This week’s election (like most elections) will have a material impact on the oil and gas industry, and thus producers, associations, and other industry participants will be observing closely as to the outcome. Recently, editors of the Oil & Gas Journal (Nick Snow & Bob Tippee) gave some of their thoughts on the topic.
A couple of weeks ago we looked at Exon Mobil Corp.’s lack of asset write-downs to understand different values placed on oil and gas reserves in a GAAP, Non-GAAP, and IFRS context. This week we explain how to find the fair market value of oil and gas reserves.
On October 13, 2016 RSP Permian (RSPP) announced the acquisition of Silver Hill Energy (SHE) for approximately $2.4 billion dollars. SHE will receive approximately $1.182 billion in RSPP common stock and $1.25 billion in cash. Based on RSPP disclosures, the … Continued
This is the first of two posts in which we will investigate the different values placed on oil and gas reserves in a GAAP, Non-GAAP, IFRS, and fair market value context. As an example we will consider Exxon Mobil Corp., the nation’s largest energy company, which is under investigation for its lack of asset write-downs amid falling oil and gas prices.
