Battalion Oil and Fury Resources Reveal Merger Agreement Changes

Exciting Developments in the Merger Agreement

Recently, Battalion Oil Corporation (NYSE: BATL) announced changes to its merger agreement with Fury Resources, Inc., marking a significant milestone for both companies. This amendment reflects their commitment to strengthen their partnership and expand their presence in the energy market.

Overview of the Merger Details

Under the revised terms of the Agreement and Plan of Merger, Fury Resources has agreed to acquire all outstanding shares of Battalion's Common Stock for $7.00 per share in cash. This acquisition is pivotal as it allows Battalion’s shareholders to realize immediate value for their investments, while also facilitating Fury's entry into a key market.

Rollover Stockholders' Contribution

As part of this agreement, notable shareholders, including Luminus Management, LLC, and Oaktree Capital Management, have committed to contribute their shares of Preferred Stock to the parent company in exchange for new shares. This transaction not only indicates their trust in the merged entity but also ensures a smoother transition for all stakeholders involved.

Financial Commitments to Support the Merger

To support the completion of the merger, Parent has secured significant financial commitments. This includes $200 million in debt from Fortress Credit Corp. and AI Partners Asset Management Co., Ltd, alongside $188 million in Preferred Stock commitments. Furthermore, approximately $160 million in equity has also been pledged to acquire new shares of Parent's common stock, ensuring robust backing for future growth.

Projected Outcomes Post-Merger

Upon successful completion, expected in the fourth quarter of 2024, the newly formed entity is anticipated to maintain around $100 million in cash, positioning it favorably in the competitive energy landscape. This strategic advantage lays the groundwork for potential expansion opportunities and further development of assets.

Executive Insights on the Merger

Avi Mirman, Co-Founder and Chairman of Fury Resources, expressed enthusiasm about this acquisition, highlighting the team's experience and the potential for scaling operations quickly. His comments underline a shared vision of maximizing returns for investors through enhanced operational capabilities and resource management.

Support from Experienced Leadership

Additionally, Battalion's CEO, Matt Steele, reiterated the collaborative efforts of both teams to finalize this merger and emphasized their dedication to a successful transition. The leadership's commitment reflects a strong alignment of goals and a cohesive strategy moving forward.

About Battalion Oil Corporation

Battalion Oil Corporation operates as an independent energy company focused on the acquisition, production, exploration, and development of onshore oil and natural gas properties across the United States. With a clear growth strategy, the company aims to enhance shareholder value while navigating the dynamic energy sector.

About Fury Resources, Inc.

Fury Resources, Inc. specializes in exploration and production within the energy sector, particularly in the Permian Basin. The company boasts a team of seasoned professionals renowned for recognizing and developing high-value assets, thus positioning Fury Resources for continued growth and significant returns on investments.

Frequently Asked Questions

What is the significance of the amended merger agreement?

The amended merger agreement enhances collaboration between Battalion Oil Corporation and Fury Resources, providing both parties with opportunities for growth and value creation.

What are the financial backing details for this merger?

Parent has secured $200 million in debt commitments, $188 million in Preferred Stock commitments, and $160 million in equity to support the merger.

When is the merger expected to close?

The merger is anticipated to close in the fourth quarter of 2024, subject to the approval of Battalion's stockholders.

Who will manage the merged entity?

The leadership teams from both Battalion and Fury Resources will collaborate post-merger, with a focus on unlocking potential and accelerating development.

How does this merger impact Battalion's shareholders?

For Battalion shareholders, the merger offers an immediate cash buyout for their shares and positions them for potential growth under the new entity formed with Fury Resources.

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