Daily Brief Energy/Materials: New World Resources, Unit Corp, Antero Resources, Pan African Resources, Seadrill Ltd, SGX Rubber Future TSR20, XCF Global, Giga Metals , Omai Gold Mines and more

• New World Resources (NWC AU) is subject to a bidding war between Central Asia Metals (CAML LN) and Kinterra. CAML’s binding offer is A$0.055 while Kinterra’s non-binding offer is A$0.057. 
• At current terms, a binding Kinterra offer would be superior as the price increase more than offsets the reverse break fees and does not require regulatory approvals.
• Despite Kinterra’s offer representing a 103.6% premium to the undisturbed price, there remains headroom for a bidding war. 

• This week, I spoke to the CFO of Unit Corp and updated my investment case on Unit Corp.

• I think Unit Corp looks very cheap. On a consolidated basis, the stock is trading at ~5.6x FCF.

• This doesn’t sound that cheap for an oil and gas company. But results are depressed.

• Antero Resources’ first-quarter earnings presentation for 2025 reflects a strong operational performance and strategic execution across several key areas.
• The firm has reported significant efficiency gains in drilling and completions, a strengthened hedging position, improvements in natural gas liquids (NGL) pricing, and continued solid financial management.
• On the operational front, Antero Resources has achieved noteworthy drilling and completion efficiencies.

Pan African’s 11 June operational update indicated FY25 output 3.9% below the bottom of the previously guided range. However, the shortfall reflected little more than Nobles and Evander failing to hit what were otherwise relatively aggressive production targets. Production in H225 was still at record levels and almost one-third higher than in H1. Our prior production forecast was at the bottom of the guidance range and we have only had to reduce our FY25 forecast production number by 4.2%. This has been more than offset by outperformance in the gold price. In addition, some output from Nobles and MTR/Mogale, which we had expected to be classified as ‘pre-commercial’, we now expect to be classified as ‘commercial’ and included in PAF’s income statement for FY25. Taken together, we have upgraded our FY25 normalised HEPS forecast quite materially, from 6.79c per share to 8.15c per share (see Exhibit 3), while our overall valuation of the company has also increased, albeit more modestly, owing to the recent strength of the rand against the US dollar.

• Transocean’s first quarter results for 2025 present a mixed picture of financial performance and strategic positioning.
• The company reported adjusted EBITDA of $244 million on contract drilling revenues of $906 million, resulting in an EBITDA margin of approximately 27%.
• This indicates a relatively stable operational milieu, supported by notable contract extensions such as the one-year extension option for the Deepwater Asgard and a $40 million backlog from contract extensions on the Transocean Equinox.

• Export earnings fall 8.16% YoY to US$61.15 million in April 2025  
•  Latex harvesting starts in drier North-Central Province areas  
• Bid to scale up global market share in rubber products from 0.25%

• Management believes SAF is the immediate and most effective solution to decarbonize the aviation industry.
• While technological advancements in aircraft design, hydrogen fuel, and battery technologies offer long-term potential, they are not yet feasible for widespread deployment, especially for long- and mid-range flights.
• The weight and energy density limitations of batteries and the infrastructural demands for hydrogen mean SAF remains the only scalable solution to achieve decarbonization goals at least in the near and medium term. 

• What you need to know: • Scott Lendrum, a veteran within M&A and capital markets, has been appointed CEO of Giga Metals, effective July 2nd, 2025.
• • Former CEO Mark Jarvis becomes President, while outgoing President Martin Vydra will remain as Strategic Advisor, preserving continuity.
• Yesterday after market, Giga Metals (GIGA:TSXV, GIGGF:OTC) announced the appointment of Scott Lendrum as Chief Executive Officer, effective July 2nd, 2025.

• What you need to know: • Omai reported assays from five holes (3,189m), part of the expanded >25,000m 2025 drill program at Wenot.
• • Highlights include 2.67 g/t Au over 21.4m, 2.31 g/t over 24.6m, and 5.47 g/t over 9.7m.
• • 28 holes have been completed YTD (17,109m); results from seven holes remain pending ahead of the Q3 resource update.