Mercer Capital's Energy Industry newsletter provides perspective on valuation issues. Each newsletter also typically includes macroeconomic trends, industry trends, and guideline public company metrics.
Mercer Capital's Value Focus: Energy Industry | Q1 2019 | Region Focus: Eagle Ford
BUSINESS VALUATION &
FINANCIAL ADVISORY SERVICES
Exploration & Production
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.