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January 1, 2019

E&P First Quarter 2019

Region Focus: Eagle Ford

After a sharp decline in crude prices and the stock market in general, the first quarter saw prices bounce back to finish about halfway between their Q4 peak and trough. Concerns about economic slowdowns increased in the fourth quarter, though these have subsided somewhat.  The Federal Reserve indicated in March that it would not raise rates for the rest of 2019, further easing concerns.  OPEC production declines helped ease supply and raise prices, though U.S. production has continued to grow.  Despite this domestic growth, investors have shown a preference for returns and capital discipline, not just surging growth.

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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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