Alternatives
shutterstock_2364977019.jpg

January 2, 2017

Refining | 2017 Issue I

Refining Overview

Despite profit margin improvement since the start of 2017, the high cost of RINs led to an increase in operating expenses which more than offset the decrease in cost of goods sold.  Refiners’ inputs and products are both commodities, which means that the price they pay for inputs and the prices they receive for their products are generally determined by the market. Therefore refiners earn profits through generating efficiencies, increasing their market share, and producing higher margin goods.

Although the price of refined products has been somewhat down over the first half of 2017, crack spreads increased over the first half of the year giving the downstream markets optimism about the rest of the year to come.  Additionally, it is thought that the Trump administration will loosen some existing policies which are burdensome to the oil and gas industry.  Overall, the industry has consolidated in order to increase operating leverage.

The data presented in this report includes the most recently available information as of October 31, 2017.  This includes public company earnings metrics as of June 30 and information from the EIA as was available. 

Download the full newsletter

Download
Download the newsletter

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.
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.
Themes from the Q4 2025 Energy Earnings Calls
Themes from the Q4 2025 Energy Earnings Calls
Fourth quarter 2025 earnings calls suggest an industry preparing for a transitional 2026, emphasizing organic inventory expansion, structural natural gas demand growth, and tightening service market fundamentals. Management teams appear focused less on short-term volatility and more on positioning for the next upcycle.

Cart

Your cart is empty