Corporate Valuation, Oil & Gas

February 19, 2018

Valuing Oil & Gas Reserves (Part I)

Don Erickson, Managing Director of Mercer Capital, educates the public on valuation methodologies and trends impacting various industries. One such industry is Oil & Gas. In this slide deck, he discusses the main drivers impacting the oil and gas pricing environment over the previous decade and the implications to valuing reserves. Structured in two parts, this slide deck was originally presented to notable professionals in the valuation industry and is designed as a high level overview of the technological and production method changes currently employed by the oil and gas industry. Mercer Capital’s goal with this slide deck is to give the public a vocabulary and conceptual framework for thinking about valuation issues and challenges within the industry given it is prone to volatile swings in commodity prices. Mercer Capital has significant experience valuing assets and companies in the oil and gas industry, primarily oil and gas, bio fuels and other minerals. We also provide financial education services to family businesses.  We help family ownership groups, boards, and management teams align their perspectives on the financial realities, needs, and opportunities of the business. Contact a Mercer Capital professional today to discuss your needs in confidence.

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Appalachian Basin Mergers and Acquisitions Update: October 2025 Through September 2026
Appalachian Basin Mergers and Acquisitions Update

October 2025 Through September 2026

Appalachian Basin M&A activity from October 2025 through September 2026 featured a mix of large strategic asset trades, mineral and royalty acquisitions, and non-operated investments. The transactions highlight a broadening buyer universe and the importance of interpreting valuation benchmarks in light of differing asset structures and strategic considerations.
How Do Reserve Categories Affect Oil and Gas Valuation?
How Do Reserve Categories Affect Oil and Gas Valuation?
Reserve categories influence oil and gas valuation through differences in recovery certainty, required capital, development timing, and exposure to execution risk. Understanding how PDP, PDNP, PUD, probable, and possible reserves differ helps support more defensible valuation assumptions and conclusions.
How Do Business Appraisers Account for Cyclicality When Valuing Oilfield Services Companies?
How Do Business Appraisers Account for Cyclicality When Valuing Oilfield Services Companies?
Oilfield services companies present distinctive valuation challenges because earnings, market multiples, cash flow, and equipment values can shift materially across the industry cycle. Effective appraisal requires applying the income, market, and asset-based approaches with careful attention to normalized performance and cycle position.

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