In today’s briefing:
- LG Chem: Announces a PRS Worth 2 Trillion Won Using Its Shares in LG Energy Solution as Base Asset
- Long Woodside (WDS AU), Short Ampol (ALD AU): Statistical Spread Hits Trigger in Aussie Energy Pair
- Fermi Inc. (FRMI): Investors Bid Up Future AI Infrastructure, Shares Close 55% Higher
- Occidental’s $10 Billion Oxychem Deal Could Reshape Its Future — But No Buyer In Sight?
- Arrow Exploration Corp. (AIM: AXL): Dry Hole at Mateguafa Oeste but Three More Prospects to Drill
- Rayonier Advanced Materials, Inc.: Having Weathered 1H25 Crosswinds…
- Oil futures: Crude retreats on mixed signalling from OPEC+
- Zephyr Energy Plc (AIM: ZPHR): All eyes on upcoming CPR for the Paradox
- CAPT: Early Exploration on Acquired Land Shows Significant Promise
- Hybridan Small Cap Feast: 24/09/2025
LG Chem: Announces a PRS Worth 2 Trillion Won Using Its Shares in LG Energy Solution as Base Asset
- LG Chem announced that it plans to complete a price return swap worth about 2 trillion won (US$1.4 billion) using its stake in LG Energy Solution as the base asset.
- This 2 trillion won PRS is likely to have a slightly positive impact on LG Chem and slightly negative impact on LG Energy Solution.
- Our NAV valuation of LG Chem suggests implied NAV per share of 369,187 won, which is 31% higher than current levels.
Long Woodside (WDS AU), Short Ampol (ALD AU): Statistical Spread Hits Trigger in Aussie Energy Pair
- Context: The Woodside Energy Group Ltd (WDS AU) vs. Ampol (ALD AU) price-ratio has deviated more than two standard deviations from its one-year average, presenting a potential relative value opportunity.
- Highlights: Going long Woodside Energy (WDS AU) and short Ampol (ALD AU) targets a 6% return.
- Why Read: Essential for quantitative traders seeking mean-reversion opportunities, with detailed execution framework, risk management protocols, and historical simulation showing the statistical basis for this relative value play.
Fermi Inc. (FRMI): Investors Bid Up Future AI Infrastructure, Shares Close 55% Higher
- The company priced 32.5 million shares at $21.00 and saw its shares open at $25.00, a 19% premium.
- Investor demand was strong and stemmed from pre-IPO testing-the-waters meetings with more than 100 investors.
- The strong momentum generated from the debut suggests that traders may continue to gravitate toward the name, creating the potential for sharp swings in the near term.
Occidental’s $10 Billion Oxychem Deal Could Reshape Its Future — But No Buyer In Sight?
- Occidental Petroleum Corporation is on the verge of its largest-ever divestment: the sale of its OxyChem petrochemical unit, in a deal that could fetch at least $10 billion.
- According to recent reports, the company is deep in discussions, though no buyer has been named yet.
- If finalized, this move will mark a pivotal shift in Occidental’s corporate structure—transforming the Houston-based energy giant’s strategic outlook and positioning it as one of the leanest and most carbon-focused companies in the sector.
Arrow Exploration Corp. (AIM: AXL): Dry Hole at Mateguafa Oeste but Three More Prospects to Drill
- The Mateguafa Oeste was water wet. Our ReNAV for the well was £0.09 per share.
- We did not carry any production from this prospect in our cash flow forecast.
- The rig will now move to Mateguafa Attic where the Mateguafa 5 vertical well will be drilled in November.
Rayonier Advanced Materials, Inc.: Having Weathered 1H25 Crosswinds…
- 2H25 EBITDA guidance reflective of more normalized performance.
- While non-recurring headwinds, such as tariff- related order pattern disruptions, operational challenges, labor strikes, and adverse weather, reduced 1H25 EBITDA by close to $60 million, 2H25 EBITDA guidance of $105-115 million implies a return to more normal operations and profitability levels as RYAM works to improve costs and drive higher volumes and prices.
- Robust pipeline of cost saving and efficiency projects. RYAM has launched a targeted capital deployment of $24 million to drive $30 million in annual cost savings in its core cellulose specialties (CS) business in 2026, with additional projects envisioned for 2027 and beyond, as the company continues to optimize its operations and streamline costs, positioning itself to fully benefit from the market recovery and take advantage of incremental growth opportunities.
Oil futures: Crude retreats on mixed signalling from OPEC+
- Quantum Commodity Intelligence – Crude oil futures were drifting lower Wednesday, extending the heavy losses in the early part of the week amid growing concerns that markets could face a significant supply glut in Q4.
- Front-month Dec25 ICE Brent futures were trading at $65.54/b (2000 BST) versus Tuesday’s settle of $66.03/b, while Nov25 NYMEX WTI was at $61.97/b against a previous close of $62.37/b.
- Benchmarks came under pressure after Bloomberg reported on Tuesday that OPEC+ is considering an accelerated schedule on unwinding a second tranche of production cuts, which could fast-track the return of around 1.5 million bpd in just three months.
Zephyr Energy Plc (AIM: ZPHR): All eyes on upcoming CPR for the Paradox
- 2Q25 sales (excluding NGLs) averaged 632 boe/d, reflecting continued operator-imposed constraints on the six Slawson wells due to prevailing low commodity prices.
- Aggregate production from these wells in 1H25 was 141 boe/d, below management’s forecast of 214 boe/d.
- Importantly, there are no reservoir integrity concerns.
CAPT: Early Exploration on Acquired Land Shows Significant Promise
- Capitan announced mapping, trenching, and soil sampling results as part of a reconnaissance-scale program on the newly acquired land package.
- Early work shows strong silver and gold mineralization on the north side of the granodiorite intrusion, significantly expanding the size potential.
- CAPT has upsized its fully funded Phase 1 program by 50% to 15,000m; ~8,000m drilled to date with 38 RC assays pending.
Hybridan Small Cap Feast: 24/09/2025
- 8th September: Project Glow Topco Limited, the ultimate holding Company of The Beauty Tech Group Limited, a global leader in the rapidly growing at-home beauty technology market, encompasses three distinct, innovative and premium beauty technology brands – CurrentBody Skin, ZIIP Beauty and Tria Laser – under which it develops, manufactures and retails at-home beauty devices.
- In FY24, the Group reported revenue of £101.1m and adjusted EBITDA of £22.9m.
- Between the financial period for the 16 months ended 31 January 2023 (FY22) and FY24, the Group’s own-brand revenue and adjusted EBITDA grew at a compound annual growth rate of 73.6% and 92.9% respectively.
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