Financial Reporting Valuation, Oil & Gas

December 28, 2021

Mercer Capital's 2021 Energy Purchase Price Allocation Study

In Case You Missed It

Did you miss Mercer Capital's 2021 Energy Purchase Price Allocation Study? If you did, before we move into 2022, take a look at the 2021 Study.

This study researches and observes publicly available purchase price allocation data for three sub-sectors of the energy industry: (i) exploration & production; (ii) oilfield services; and (iii) midstream and downstream.  This study is unlike any other in terms of energy industry specificity and depth.

The 2021 Energy Purchase Price Allocation Study provides a detailed analysis and overview of valuation and accounting trends in these sub-sectors of the energy space.  This study also enables key users and preparers of financial statements to better understand the asset mix, valuation methods, and useful life trends in the energy space as they pertain to business combinations under ASC 805 and GAAP fair value standards under ASC 820.  We utilized transactions that closed and reported their purchase allocation data in calendar year 2020.

This study is a useful tool for management teams, investors, auditors, and even insurance underwriters as market participants grapple with ever-increasing market complexity.  It provides data and analytics for readers seeking to understand undergirding economics and deal rationale for individual transactions.  The study also assists in risk assessment and underwriting of assets involved in these sectors. Further, it helps readers to better comprehend financial statement impacts of business combinations.

>> DOWNLOAD THE STUDY <<

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Mercer Capital to Sponsor and Speak at Bank Director’s 2026 Bank Board Forum
Mercer Capital to Sponsor and Speak at Bank Director’s 2026 Bank Board Forum
Mercer Capital is pleased to sponsor Bank Director’s 2026 Bank Board Forum, taking place September 20 to 23, 2026, at the JW Marriott Austin in Austin, Texas. Jeff Davis and Andy Gibbs will attend and speak on behalf of the firm.The Bank Board Forum brings together bank directors and senior executives from across the country to examine the issues affecting bank leadership, governance, strategy, risk, technology, talent, and growth. This year’s program features main-stage presentations and specialized tracks designed for leaders focused on Audit & Risk, Compensation & Talent, and Governance & Strategy.Davis and Gibbs will present the breakout session “Community Bank 2027 Budget Preview: Opportunities and Challenges.” As boards review proposed budgets for the coming year, the session will examine the industry, strategic, and performance trends shaping the outlook for community banks. Topics will include the financial trends that may continue into 2027, the factors behind the recovery in bank stocks during 2026, the sustainability of that momentum, capital management amid easing capital requirements, and other evolving industry conditions.Jeff Davis, CFA, is Managing Director of Mercer Capital’s Financial Institutions Group. He provides valuation and transaction advisory services to banks and other financial institutions and has extensive experience analyzing publicly traded banks and specialty finance companies. Before rejoining Mercer Capital, Jeff spent 13 years as a sell-side analyst and held senior positions with Guggenheim Securities and FTN Equity Capital Markets. He is a frequent speaker at banking industry conferences and regularly presents to boards of directors and executive management teams.Andy Gibbs, CFA, CPA/ABV, is a Senior Vice President and leads Mercer Capital’s Depository Institutions Group. He provides valuation and corporate advisory services to financial institutions for mergers and acquisitions, employee stock ownership plans, corporate planning and reorganizations, financial reporting, and tax-related matters. Andy is a frequent speaker on community bank valuation and is a co-author of The Bank Director’s Valuation Handbook: What Every Director Must Know About Valuation and other books focused on financial institutions.Mercer Capital looks forward to connecting with bank leaders in Austin and contributing its valuation and transaction advisory perspective to the discussion about the opportunities and challenges facing community banks in 2027. Additional information is available on the Bank Board Forum conference website: https://www.bankdirector.com/event/bank-board-forum-2026/
How Do Reserve Categories Affect Oil and Gas Valuation?
How Do Reserve Categories Affect Oil and Gas Valuation?
Reserve categories influence oil and gas valuation through differences in recovery certainty, required capital, development timing, and exposure to execution risk. Understanding how PDP, PDNP, PUD, probable, and possible reserves differ helps support more defensible valuation assumptions and conclusions.
How Do Business Appraisers Account for Cyclicality When Valuing Oilfield Services Companies?
How Do Business Appraisers Account for Cyclicality When Valuing Oilfield Services Companies?
Oilfield services companies present distinctive valuation challenges because earnings, market multiples, cash flow, and equipment values can shift materially across the industry cycle. Effective appraisal requires applying the income, market, and asset-based approaches with careful attention to normalized performance and cycle position.

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