Falcon Minerals gains on $1.9 bln merger deal with Desert Peak

Sitio Royalties

12/01/2022 13:40

** Shares of Falcon Minerals  FLMN.O  up 4.5% at $5.7
premarket 
    ** Co and Desert Peak Minerals agree to merge in all-stock
deal that values combined enterprise at $1.9 bln  urn:newsml:reuters.com:*:nBw906yRwa
    ** Under terms of agreement, Falcon will issue 235 mln
shares of Class C common stock to Desert Peak's equity holders
    ** Falcon's shareholders will own ~27% of combined co, while
Desert Peak's holders will own approximately 73%
    ** Transaction is expected to be accretive to Falcon
shareholders on cash flow per share basis for 2022 
    ** Merged entity will own over 139,000 Net Royalty Acres,
the majority of which are located in Permian Basin and is
projected to produce approximately 13,500-14,500 barrels of oil
equivalent per day in H1 2022
    ** Co to be led by Desert Peak's CEO Christopher Conoscenti
    ** Three of six brokerages rate stock "buy" or higher and
three "hold"; their median PT is $7


 (Reporting by Shashank Nayar in Bengaluru)
 ((Shashank.Nayar@thomsonreuters.com; within U.S. +1 646 223
8780; outside U.S. +91 80 6182 2256;))