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October 2, 2018

E&P Fourth Quarter 2018

Region Focus: Appalachia

As the new year begins, we turn our attention to the Appalachia region, and not by coincidence. Cooler temperatures in the winter months tend to lead to increased natural gas prices and consumption, and the Appalachia region is the largest natural gas producer in the country.  Fourth quarter energy prices exhibited considerable volatility . Crude prices declined steadily over the period, and natural gas prices increased from about $3.0 per Mcf to a peak of $4.84 in mid-November before declining to $2.94 at year-end.

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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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