STR And MNRL — Bloomberg — In Pre-Market Trading MNRL Up Almost 8% -- September 6, 2022

The Deal

Breaking: deal announced. Also here.

• all-stock merger;
• aggregate enterprise value: $4.8 billion, based on closing prices
• brings together two of the largest public companies in the oil and gas mineral and royalty sector with complementary high-quality assets in the Permian Basin
• 259,510 net royalty acres
• 32,800 boepd
• 50.3 net line-of-sight wells
• annual operational cash flow projected: $15 million
• projected too reduce Sitio's 2W22 G&A per boe by 19% to $.172 per boe for the combined company
• float to increase Sitio's publiic float almostt 6x; from $320 million to $1.9 billion

For comparison, Devon, 1Q22:

• $45 billion
• 616,000 boepd

Two metrics:

• Sitio-MNRL: $4.8 billion / $32,800 boepd = $146 thousand / boepd
• Devoon: $45 billion / 616,000 boepd = $73,000 / boepd

Original Post

Before we get started, this "ESG" thing is working to our advantage. 

STR website.

It started here.

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Pre-market, September 6, 2022: 

STR:

• market cap: $2 billion
• p/e: 23
• forward yield: 11.54%
• trading at $25

MNRL:

• pre-market: up almost 8%;
• market cap: $1.8 billion
• p/e: 14
• trading at $30