Daily Brief Energy/Materials: Warrego Energy, Silver, Conocophillips and more

In today’s briefing:

Warrego Enters Into A Scheme With Beach

The Stokes’ family-backed Beach Energy (BPT AU) is offering Warrego Energy (WGO AU)‘s shareholders $0.20/share, in cash, by way of a Scheme. That’s a 36% premium to the one-month VWAP.
A contingent value payment may be payable to Warrego shareholders from the sale of Warrego’s Spanish assets within 12 months
Warrego’s board unanimously recommend the Beach deal. The transaction is expected to complete in early March. The wild card is whether Strike Energy (STX AU) pitches a revised Offer.

Fundamentally speaking, it was nearly a perfect week for commodities as much major news aligned during the week after China eased some Covid restrictions, raising hopes of a demand recovery in the world’s second-biggest economy.
Almost all major commodities traded higher following China’s move to reduce the time that travelers and close contacts of infected people must spend in quarantine, a significant amendment to the Covid Zero policy.
China’s loosening of restrictions strengthened a rally that began on Wall Street, with risk assets rising after US inflation slowed.

ConocoPhillips’ stock has continued its phenomenal bull run and continues to reach new highs as the company delivered a solid third quarter result surpassing Wall Street expectations in terms of revenues as well as earnings.
This is especially true for U.S. shale, where the rate of production increase across the board is being constrained by quickly rising costs and an exceedingly constrained supply.
The company is well-positioned to address these long-term supply challenges thanks to the depth and high quality of its unconventional U.S. inventory and broad global portfolio.

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