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Tuesday, September 6, 2022

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.

Disclaimer: this is not an investment site.  Do not make any investment, financial, job, career, travel, or relationship decisions based on what you read here or think you may have read here. Full disclaimer at tabbed link.

All my posts are done quickly: there will be content and typographical errors. If anything on any of my posts is important to you, go to the source. If/when I find typographical / content errors, I will correct them.  

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

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