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July 1, 2020

E&P Third Quarter 2020

Bakken

Executive Summary

The third quarter of 2020 experienced a relatively stable price environment compared to the volatile prices seen in the first half of the year.  The WTI range narrowed, hovering around $40 per barrel, and natural gas increased from $1.70 per MMbtu to $2.50 per MMbtu.  According to the Dallas Federal Survey released on September 23, industry participants expect oil prices to be nominally higher than last quarter’s expectations, but respondents continue to state that most new drilling remains uneconomic.  The concurrent overlapping impact of (i) discord created by the OPEC / Russian rift and resulting supply surge; and (ii) the drop in demand due to COVID-19 related issues, was historic and continued to play a role in the third quarter.  As optimism surrounding a gradual demand recovery has increased, companies are preparing for an eventful end to 2020.  As if COVID-19 and the Russian-Saudi price rift wasn’t eventful enough, an election in November will add to the mix for what seems to be an already pressing and critical time for the industry.  The unfortunate overlap in timing of these events has made the bankruptcy courts busy, with no indication of that trend coming to a halt.  In this newsletter, we examine the macroeconomic factors that have affected the industry in the third quarter and peek behind the curtain on what the remainder of the year might hold.

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Mercer Capital Sponsors ASA Houston’s 2026 Energy Valuation Conference
Mercer Capital Sponsors ASA Houston’s 2026 Energy Valuation Conference
Mercer Capital is pleased to serve as a Gold Sponsor of the 2026 Energy Valuation Conference, hosted by the Houston Chapter of the American Society of Appraisers. The conference will take place on Thursday, May 14, 2026, at The Briar Club in Houston, Texas, with both in-person attendance and live webcast options available. Bryce Erickson, ASA, MRICS; J. David Smith, CFA, ASA; and Andrew B. Frew, ASA, ABV, will attend on behalf of Mercer Capital.Now in its 16th year, the Energy Valuation Conference brings together appraisers, accountants, financial analysts, petroleum engineers, and many other professionals working across the energy sector. The conference is designed as a multi-disciplinary forum addressing valuation techniques and issues across the energy industry, including upstream, midstream, downstream, renewables, power generation, tax, governance, and emerging market considerations.This year’s program will address a range of current valuation topics affecting the energy industry, including energy transition, transaction activity, capital markets, and valuation considerations across upstream, midstream, and downstream sectors.Bryce Erickson is a Managing Director at Mercer Capital and leads the firm’s energy industry practice. Since 1998, he has led approximately one thousand engagements across diverse purposes, including gift and estate tax planning, litigation support, mergers and acquisitions, buyouts, buy-sell agreements, financial reporting, purchase price allocation, financing, and business planning. He regularly publishes on oil and gas industry topics in Mercer Capital’s Energy Valuation Insights blog. He is also a contributor to Forbes.com’s Energy sector.J. David Smith is a Senior Vice President at Mercer Capital and a senior member of the firm’s energy practice. He provides valuation services for tax planning, transactional purposes, and financial reporting. David is also a regular contributor to Mercer Capital’s Energy Valuation Insights blog.Andrew B. Frew is a Vice President at Mercer Capital and has nearly 25 years of business valuation experience. He has been involved with hundreds of valuation and related engagements across numerous industries and values businesses and business interests for gift and estate tax, charitable giving, buy/sell agreements, mergers and acquisitions, business succession and exit planning, and litigation support purposes. Andy also contributes regularly to Mercer Capital’s Energy Valuation Insights blog.Mercer Capital works with energy companies, mineral and royalty owners, oilfield services businesses, investors, attorneys, accountants, and other advisors on valuation and financial advisory matters. The firm provides business valuation, asset valuation, litigation support, transaction advisory, financial reporting valuation, and tax valuation services across the energy sector, helping clients address complex financial questions with clear, independent, and well-supported analysis.Mercer Capital looks forward to supporting the conference and connecting with energy valuation professionals and industry leaders in Houston. Additional information about the 2026 Energy Valuation Conference is available at https://energyvaluationconference.org/.For more information about Mercer Capital’s experience and expertise in the oil & gas sector, visit https://mercercapital.com/industries/energy-power/oil-gas/.
EP First Quarter 2026 Eagle Ford
E&P First Quarter 2026

Region Focus: Eagle Ford

Eagle Ford // The Eagle Ford exhibited modest production growth over the past year, broadly in line with other major basins, as output remained within a relatively narrow range. This stability reflects the basin’s maturity, with limited variability in production despite declining rig counts and continued capital discipline among operators.
Just Released: Q1 2026 Oil & Gas Industry Newsletter
Just Released: Q1 2026 Oil & Gas Industry Newsletter

Region Focus: Eagle Ford

The Eagle Ford exhibited modest production growth over the past year, broadly in line with other major basins, as output remained within a relatively narrow range. This stability reflects the basin’s maturity, with limited variability in production despite declining rig counts and continued capital discipline among operators.

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