Alternatives

April 1, 2020

E&P Second Quarter 2020

Permian Basin

Executive Summary

WTI front-month futures prices increased over 90% during the second quarter of 2020, though it was a bumpy road getting there.  Prices at the beginning of the quarter were ~$20/bbl, still depressed in the wake of the Saudi/Russian price war and demand destruction caused by COVID-19.  In early April, prices generally increased, approaching nearly $30/bbl by the middle of the month.  However, on April 20, WTI futures prices collapsed, falling below $0 to settle at negative $37/bbl.  While there are numerous technical reasons for the collapse, there was significant concern regarding crude storage capacity as production had not declined in tandem with demand.  However, crude futures prices generally increased thereafter, driven by supply cuts from OPEC+, curtailments by U.S. producers, and a recovery in demand.  WTI front-month futures prices ended the quarter at $39.34/bbl.

Download the full newsletter

Download
Download the newsletter

Continue Reading

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.
Digging Into Frac Sand Royalty Valuation
Digging Into Frac Sand Royalty Valuation
Frac sand royalty valuation requires more than applying a royalty rate to estimated reserves. A supportable analysis must consider lease terms, recoverable and saleable tonnage, production timing, regional demand, and the risks that affect future royalty cash flows.
Energy Valuation Insights Blog Oil & Gas
Read Now about Digging Into Frac Sand Royalty Valuation
Mineral Aggregator Valuation Multiples Study Released-Data as of August 17, 2026
Mineral Aggregator Valuation Multiples Study Released

With Market Data as of August 17, 2026

Mercer Capital has thoughtfully analyzed the corporate and capital structures of the publicly traded mineral aggregators to derive meaningful indications of enterprise value. We have also calculated valuation multiples based on a variety of metrics, including distributions and reserves, as well as earnings and production on both a historical and forward-looking basis.

Cart

Your cart is empty