Daily BriefsEnergy & Materials Sector

Daily Brief Energy/Materials: Boral Ltd, Crude Oil, ADF Group , Geopark Ltd, PetroTal and more

In today’s briefing:

  • Boral Backs Seven’s “Enhanced” Offer
  • EIA Lifts Price Forecast on Higher Oil Consumption Plus Tighter Supply
  • DRX: Another Quarter, Another Beat; Increasing Target Price
  • GeoPark Limited (NYSE: GPRK): Potential Acquisition of Unconventional Producing Assets in Argentina
  • PetroTal Corp (AIM: PTAL): Better Balance Sheet than Expected


Boral Backs Seven’s “Enhanced” Offer

By David Blennerhassett

  • After Boral (BLD AU) rejected Seven Group (SVW AU)‘s cash/scrip Offer, Seven slammed the Independent Expert’s report, calling the Target Statement “unbalanced, selective and risks fundamentally misleading Boral minority shareholders“.
  • Seven has now waived certain tendering thresholds, increasing the cash terms to A$1.70/share from A$1.50/share. Boral will also pay a fully-franked dividend of A$0.26/share, providing A$0.11/share of franking credits. 
  • The IE now considers the Offer to be reasonable. Boral’s board recommends shareholders to accept. This is done.

EIA Lifts Price Forecast on Higher Oil Consumption Plus Tighter Supply

By Suhas Reddy

  • EIA raised its crude oil price forecast for 2024 and 2025, cites higher global oil consumption outlook and concerns over geopolitical tensions.
  • The agency also increased global liquid fuels production outlook for 2024 compared to the previous month.
  • Increased forecast on US retail gasoline prices relative to March STEO, expects lower gasoline inventories and higher net exports drive price rise.

DRX: Another Quarter, Another Beat; Increasing Target Price

By Atrium Research

  • ADF Group reported Q4 & FY24 financial results this morning that beat our expectations across the board.
  • For Q4, revenue came in at $88.4M (+72% YoY) vs. our estimate of $77.1M and EBITDA came in at $15.5M (+164% YoY) vs. our estimate of $13.6M.
  • FY24 marked another stellar year for ADF as it benefits from infrastructure spending across North America and the automation capex program at its Terrebonne facility.

GeoPark Limited (NYSE: GPRK): Potential Acquisition of Unconventional Producing Assets in Argentina

By Auctus Advisors

  • GeoPark has submitted a binding offer to acquire a non-operated Working Interest in unconventional blocks in the Neuquen Basin in Argentina.
  • The offer has been accepted by the seller and the parties are working on an exclusive basis towards execution of definitive agreements.
  • The completion of the transaction could occur in 3Q24 

PetroTal Corp (AIM: PTAL): Better Balance Sheet than Expected

By Auctus Advisors

  • 1Q24 production of 18,518 bbl/d was in line with our expectations.
  • Production over the last 30 days was 20.5 mbbl/d with the recently drilled 17H well, now on pump, delivering 4,500 bbl/d.
  • This bodes very well for 2Q24 production given that the 18H well is expected to commence production in May.

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