Corporate Valuation, Oil & Gas

April 17, 2018

Capital Structure in 30 Minutes Whitepaper

In this post, we share a recent whitepaper: "Capital Structure in 30 Minutes." Capital structure decisions have long-term consequences for shareholders.  Directors evaluate capital structure with an eye toward identifying the financing mix that minimizes the weighted average cost of capital.  This decision is complicated by the iterative nature of capital costs: the financing mix influences the cost of the different financing sources.  While the nominal cost of debt is always less than the nominal cost of equity, the relevant consideration for directors is the marginal cost of debt and equity, which measures the impact of a given financing decision on the overall cost of capital.  The purpose of this whitepaper is to equip directors and shareholders to contribute to capital structure decisions that promote the financial health and sustainability of the company. This whitepaper is the second in the "Corporate Finance in 30 Minutes Series." Learn more about the whitepaper series below.
  • Corporate Finance in 30 Minutes
    • In this whitepaper, we distill the fundamental principles of corporate finance into an accessible and non-technical primer.
  • Capital Structure in 30 Minutes
    • Through this whitepaper, we equip directors and shareholders to contribute to capital structure decisions that promote the financial health and sustainability of their companies.
  • Capital Budgeting in 30 Minutes
    • Capital Budgeting in 30 Minutes assists directors and shareholders evaluate proposed capital projects and contribute to capital budgeting decisions that enhance value.
  • Distribution Policy in 30 Minutes
    • Of the three primary corporate finance decisions, distribution policy is the most transparent to shareholders. This whitepaper helps directors formulate and communicate a distribution policy that contributes to shareholder wealth and satisfaction.

Continue Reading

The Emerging Nexus of Data Centers, Excess Natural Gas, and Produced Water - Part I
The Emerging Nexus of Data Centers, Excess Natural Gas, and Produced Water: Part I
The intersection of growing data center power demand and abundant associated natural gas presents a strategic opportunity to align energy supply with digital infrastructure. Co-located generation models may enhance efficiency while supporting more stable, infrastructure-like valuation outcomes.
Looking Ahead to the 2026 Transitions Spring Conference
Looking Ahead to the 2026 Transitions Spring Conference
Looking over the agenda for the 2026 Transitions Spring Conference, several themes stand out that resonate with the issues we discuss frequently with family business boards and shareholders.
Mineral Aggregator Valuation Multiples Study Released-Data as of 03-10-2026
Mineral Aggregator Valuation Multiples Study Released

With Market Data as of March 10, 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