The oil and gas industry is constantly changing, with a lot of moving parts and financial complexities. Accurate valuation of assets within this sector is critical for making informed strategic decisions. At Mercer Capital, we have cultivated a deep understanding of the oil and gas industry through decades of experience. To share our knowledge and insights, we have produced three complimentary whitepapers for our blog readers.

How to Value Your Exploration & Production Company

The valuation of exploration and production (E&P) companies is a complex process influenced by a multitude of factors, including price volatility, technology, regulation, and different drilling economies depending on the play. Our updated whitepaper provides insights into the financial considerations and key valuation methodologies for E&P companies. By understanding the drivers of value, companies can optimize their strategic direction and financial performance. Download here

Understanding Oilfield Services Companies & How to Value Them

The oilfield services (OFS) industry is characterized by its cyclical nature. The unpredictable cyclicality of the OFS industry requires careful consideration of many industry-wide and company-specific factors in developing a reasonable forecast of future operating results.  Our whitepaper describes the key drivers and indicators of the OFS industry, as well as the key valuation methodologies of an OFS company. By understanding the key factors that impact the value of OFS companies, industry participants can make informed decisions about mergers, acquisitions, and capital allocation. Download here

How to Value an Oil & Gas Royalty Interest

A lack of knowledge regarding the worth of a royalty interest could be very costly. This can manifest itself in a number of ways. A shrewd buyer may offer a bid far below the interest’s fair market value; opportunities for successful liquidity may be missed; or estate planning could be incorrectly implemented based on misunderstandings about value. Understanding how royalty interests are properly appraised will ensure that you maximize the value of your royalty, whenever and however you decide to transfer it. Download here

Conclusion

At Mercer Capital, we are committed to providing valuable insights and resources to the oil and gas industry. Our whitepapers on E&P companies, OFS companies, and valuing royalty interests offer a comprehensive understanding of the valuation complexities within this sector. We hope you find them helpful.