In today’s briefing:
- (Mostly) Asia-Pac Weekly Risk Arb Wrap: DDH1/Perent, NWS, Mandala Multifinance, JSR Corp, Silk Laser
- Talos Energy, Inc. – Value Creation Catalysts
- Earthstone Energy, Inc – Delaware Expansion Adds Quality Inventory
(Mostly) Asia-Pac Weekly Risk Arb Wrap: DDH1/Perent, NWS, Mandala Multifinance, JSR Corp, Silk Laser
- There are 47 – mostly firm, mostly Asia-Pac – transactions currently being discussed and analysed on Smartkarma. Inside is a timetable of upcoming key events for each deal.
- Five new deals this week: DDH1 (DDH AU), NWS Holdings (659 HK), Poly Culture Group Corp H (3636 HK), Mandala Multifinance (MFIN IJ), and JSR Corp (4185 JP).
- Key updates took place forSilk Laser Australia (SLA AU) and Challenger Technologies (CHLG SP).
Talos Energy, Inc. – Value Creation Catalysts
Talos’s current valuation implies a steep discount to net asset value (NAV).
Management estimates the company’s year- end 2022 pro forma proved reserves have a gross PV-10 value of ~$5.5 billion (~$4.8 billion net of asset retirement obligations [ARO]) based on oil and natural gas prices of $75/bbl and $3.50/Mcf.
Adjusting for March 31, 2023, balance sheet items, leaves an estimated NAV of ~$3.6 billion, or $28.38/share.
Earthstone Energy, Inc – Delaware Expansion Adds Quality Inventory
Earthstone announced an agreement to acquire Novo Oil & Gas Holdings LLC for $1.5 billion on June 15, 2023.
Concurrently, Northern Oil & Gas will acquire a pro rata one-third of the assets for $500 million from Earthstone, resulting in a net purchase price of $1.0 billion.
The transaction is expected to close in 3Q23 and will have an effective date of May 1, 2023.
💡 Before it’s here, it’s on Smartkarma
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