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July 1, 2015

Third Quarter 2015

Value Focus: Energy

Exploration & Production Overview

As the 4th quarter begins, uncertainty is rife within the Exploration and Production (E&P) industry. Over 12 months into a declining oil price environment, barrel prices have experienced levels not seen since the financial crisis. The changing economics and marketplace have presented a challenging operating environment and E&P companies need to address their production levels, leverage levels and appetite for more (or less) reserve assets. Let’s first explore what has led us to the current situation: oil demand, supply, and price.

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Eagle Ford: Steady as She Goes in a Year That Wasn’t
Eagle Ford: Steady as She Goes in a Year That Wasn’t
Eagle Ford maintained stable production despite declining rig counts, reflecting basin maturity and disciplined capital investment. Commodity price volatility, particularly driven by geopolitical events, played a key role in shaping recent performance and outlook.
Eagle Ford Shale M&A Update
Eagle Ford Shale M&A Update
Eagle Ford M&A activity remains limited, driven by basin maturity, capital discipline, and competition from higher-return regions like the Permian. Transaction activity is expected to stay selective, with incremental deals tied to portfolio optimization and divestitures.
Pooling and Unitization: Understanding the Impact on Mineral Interest Value
Pooling and Unitization: Understanding the Impact on Mineral Interest Value
Pooling and unitization determine how production and revenue are allocated across mineral interests, directly impacting royalty income and valuation. Understanding these concepts is essential for accurately assessing both current cash flow and long-term asset value.

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