M&A Pivot Point: Unlocking Deals in a Shifting Market
Join Andrew Dittmar and Adam Thompson for a discussion on the latest developments in the M&A market, including activity trends, asset valuations and the emerging buyer landscape.
Making enhanced oil recovery great again: OBBA 45Q tax credit shift cuts E&P costs by 40%
Enverus Intelligence® Research (EIR) has released a report accessing how the One Big Beautiful Bill Act (OBBA) impacts the the equalization of 45Q tax credits, especially as it enhances the economics of carbon dioxide enhanced oil recovery (CO₂-EOR.)
DSU (Drilling Spacing Unit)
A Drilling Spacing Unit (DSU) refers to a designated area of land—typically defined by state regulatory agencies—within which oil or gas drilling is permitted. The DSU sets the boundaries for resource extraction from underground reservoirs, helping to maximize efficiency, protect property rights and determine royalty distributions among mineral rights owners. It plays a crucial role in evaluating the value of mineral assets, structuring joint ventures and managing investment risk in energy portfolios.
Type Curve
A type curve refers to a predictive model used to estimate the future production performance of oil and gas wells. It is constructed by analyzing historical production data and reservoir characteristics to generate a representative curve that forecasts output over time. Type curves are essential for reserve estimation, investment analysis and strategic planning in upstream energy finance.
Estimated Ultimate Recovery (EUR)
Estimated ultimate recovery (EUR) refers to the total quantity of oil or gas that is expected to be economically recoverable from a reserve or well over its productive life. It is a critical metric used by energy companies, analysts and investors to assess the viability, profitability and valuation of exploration and drilling projects. EUR is typically broken down into three categories based on confidence levels: Proven Reserves (90%+ certainty), Probable Reserves (50%+ certainty), and Possible Reserves (<50% certainty). This estimate influences financial modeling, investment decisions and project planning.
Pre-Delivery Payment (PDP)
PDP most commonly stands for pre-delivery payment. This term is especially relevant in asset financing, such as in the aviation or shipping industries, where buyers are required to make scheduled payments to manufacturers before the final delivery of high-value assets like aircraft or vessels. These payments help fund the production process and are often financed through specialized PDP financing arrangements.
Proved Undeveloped Reserves (PUD)
PUD stands for proved undeveloped reserves. These are quantities of oil and gas that geological and engineering data demonstrate with reasonable certainty to be recoverable from known reservoirs under existing economic and operating conditions, but which have not yet been developed or produced. PUDs are a critical component of an energy company’s asset base and financial valuation, as they represent future production potential and revenue
Net Asset Value (NAV)
NAV represents the value of an investment fund’s assets minus its liabilities. It is most commonly used to determine the per-share value of mutual funds, exchange-traded funds (ETFs) and other pooled investment vehicles. The NAV per share is calculated by dividing the total NAV by the number of outstanding shares. This value is typically computed at the end of each trading day using the closing prices of the fund’s holdings.
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CapEx
CapEx refers to the funds used by a company to acquire, upgrade and maintain physical assets such as property, equipment and infrastructure. In the oil and gas sector, CapEx is essential for activities like drilling new wells, developing oilfields and investing in technology to enhance production capabilities. CapEx decisions are critical for ensuring long-term growth and sustainability.