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October 1, 2021

E&P Fourth Quarter 2021

Appalachian Basin

Executive Summary

The fourth quarter of 2021 marked a recent milestone in a long upward march for energy prices.  WTI closed the year above $75 (compared to $48 at the end of 2020), while the Henry Hub spot price closed at $3.82 per mmbtu (compared to $2.36 at the end of 2020).  Stating the obvious, commodity prices were more economically attractive to producers in the latter half of the year as compared to the previous 6 to 8 quarters.  The XLE index, which primarily tracks the broader energy sector, was up over 50% for 2021.  Rig counts, although deployed with more caution than in the past, rose along with prices in 2021.  Crude oil and natural gas production in the U.S. followed suit, despite the appearance of the Omicron COVID variant, which raised uncertainty in the markets and sparked a price decline in December.  However, while the effects of COVID may have slightly dampened the trajectory of energy prices late in 2021, there is little to suggest that overall demand for oil and gas has receded as well.

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Bryce Erickson to Speak at Hart Energy’s 2026 Energy Capital Conference
Bryce Erickson to Speak at Hart Energy’s 2026 Energy Capital Conference
Mercer Capital is pleased to announce that Bryce Erickson, ASA, MRICS, Managing Director, will speak at Hart Energy’s 2026 Energy Capital Conference, taking place June 3-4, 2026, at The Post Oak Hotel in Houston, Texas.For more than 20 years, Hart Energy’s Energy Capital Conference has brought together energy executives, private equity leaders, investment bankers, institutional investors, and other financial decision-makers to discuss the deals, strategies, and market dynamics shaping the energy industry. This year’s conference will focus on capital deployment, M&A activity, institutional investment trends, and broader energy finance considerations.Erickson will participate in the panel discussion “Asset Valuations in a High-Price World: Separating Signal from Noise.” The session will examine how capital providers, lenders, and operators are valuing energy assets in today’s elevated commodity price environment while keeping long-term fundamentals in focus. Panelists will discuss valuation assumptions, decline curves, financing structures, return thresholds, and strategies for managing downside risk during commodity price cycles.Bryce Erickson leads Mercer Capital’s energy industry practice and has more than 25 years of experience providing valuation and financial advisory services across the energy sector. Since 1998, he has led approximately one thousand engagements involving oil and gas companies, mineral and royalty interests, oilfield services businesses, and related energy assets for purposes including mergers and acquisitions, tax planning, litigation support, financial reporting, financing, and strategic planning. Bryce regularly publishes on oil and gas industry topics through Mercer Capital’s Energy Valuation Insights blog and is also a contributor to Forbes.com’s Energy sector.Mercer Capital works with energy companies, mineral and royalty owners, oilfield services businesses, investors, attorneys, accountants, and financial institutions on a broad range of valuation and advisory matters. The firm provides business valuation, asset valuation, transaction advisory, financial reporting valuation, and litigation support services across the energy industry, helping clients address complex financial and strategic questions with independent, well-supported analysis.Through its participation in the conference, Mercer Capital looks forward to contributing to discussions around valuation discipline, capital markets activity, and long-term value creation in the energy sector. Additional information about Hart Energy’s 2026 Energy Capital Conference is available on their website: Energy Capital Conference
Breaking the Drought: Inside the First New U.S. Refinery in a Generation
Breaking the Drought: Inside the First New U.S. Refinery in a Generation
The Brownsville refinery project marks the first proposed new U.S. refinery in nearly 50 years, signaling renewed confidence in downstream energy infrastructure and refining economics. The development highlights evolving market dynamics, regulatory considerations, and the strategic importance of export-oriented Gulf Coast refining capacity.
Q1 2026 Upstream Energy Earnings Calls
Themes from the Q1 2026 Upstream Earnings Calls
Q1 2026 upstream earnings calls reflected a notable shift toward energy security, selective production growth, and operational resilience amid geopolitical disruption and tightening global supply conditions. Companies emphasized disciplined capital allocation while increasingly viewing infrastructure and integrated capabilities as critical competitive advantages.

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