Mercer Capital’s Value Focus: Energy is a quarterly publication providing perspective on valuation issues pertinent to energy industry professionals. Each issue includes a segment focus, market overview, mergers and acquisitions review, and more. This newsletter focuses on the following industry segments: exploration and production, midstream operations, alternative energy, and oilfield services.
This issue includes a discussion on Exploration and Production. Excerpting from the discussion:
In 2015, oil and gas exploration & production activities in the US are expected to generate $320.0 billion in revenue. This represents an 8.8% decline from 2014, but a 13.9% increase from 2009’s nadir. Industry revenues peaked in 2008 due to record-high oil prices, but declined precipitously in 2009 as prices dropped, driven by declining energy demand resulting from lower levels of economic activity during the recession. Industry revenues have generally increased since that time as the economy and oil prices recovered, but are expected to decline this year due to low oil prices.
After declining in 2015, industry revenues (as estimated by IBISWorld) are expected to rise over the next several years due to technological advances, higher oil prices, and higher levels of production.
This issue also includes the special supplement Fairness Opinions: Evaluating a Buyer’s Shares from the Seller’s Perspective.
To read the entire write up, download the newsletter (pdf) here.