Australia's Origin Energy to benefit from stake sale in Beetaloo Basin- UBS

Tamboran Resources

20/09/2022 24:30

** UBS says while the deal price for Origin Energy's
 ORG.AX  stake in Beetaloo Basin is low, co is likely to benefit
from the deal
    ** Australia's no.2 power producer said on Monday it would
sell its 77.5% stake in the Beetaloo Basin joint venture to
Tamboran Resources  TBN.AX  and its top shareholder for A$60
million  ($40.39 million)  urn:newsml:reuters.com:*:nL1N30P0NT
    ** UBS says ORG's upside via its 5.5% royalty on well-head
revenue is subject to TBN taking its final investment decision
on developing the basin
    ** Maintains that Beetaloo's unique geology makes it one of
the largest and most interesting contingent gas resources in
Australia - UBS  
    ** UBS supports power producer's strategic decision to focus
capital allocation on energy transition in its Energy Markets
division
    ** Five of 13 analysts rate the stock "buy" or higher, seven
"hold" and one "sell" or lower; their median PT is A$6.22–
Refinitiv Eikon data 
    ** YTD stock is up nearly 10%     



($1 = 1.4854 Australian dollars)

 (Reporting by Navya Mittal in Bengaluru)
 ((navya.mittal@thomsonreuters.com))