Battalion Oil Corporation Enhances Merger Deal with Fury Resources
Strategic Merger Amendment by Battalion Oil Corporation
Battalion Oil Corporation (NYSE American: BATL), based in Houston, Texas, is making headlines with its latest announcement regarding an amendment to its merger agreement with Fury Resources, Inc. This strategic move is focused on consolidating Battalion’s position in the oil and gas sector and is designed to deliver significant value to its shareholders.
Details of the Merger Agreement
The amended Agreement and Plan of Merger states that Fury Resources has committed to acquiring all outstanding shares of Battalion’s Common Stock at a cash price of $7.00 per share. This negotiation is seen as an advantageous opportunity for both companies, allowing for a smooth transition while positioning Bulletin for greater success within the industry.
Preferred Stock Exchange
In a noteworthy aspect of this merger, the shareholders of Battalion, specifically Luminus Management, LLC, Gen IV Investment Opportunities, LLC, and funds managed by Oaktree Capital Management, have agreed to contribute their Preferred Stock to Fury. In exchange, they will receive new preferred shares of Fury based on the established redemption values. This approach illustrates the confidence that existing shareholders have in this prospective deal.
Expected Timeline and Financial Commitments
The merger is anticipated to reach finalization in the upcoming months, specifically in the fourth quarter of this year. This timeline is contingent upon achieving several conditions outlined in the merger agreement, including approval from Battalion’s shareholders. Fury resources have confirmed substantial capital commitments, which include $200 million in debt from Fortress Credit Corp. and AI Partners Asset Management, illustrating solid backing for this undertaking.
Post-Merger Financial Outlook
Once the merger is completed, it is projected that Fury will possess approximately $100 million in cash reserves post-acquisition, excluding transaction fees. This financial positioning is expected to empower Fury to focus on enhanced operations and future projects without immediate constraints.
Executive Insights
Avi Mirman, Co-Founder and Chairman of Fury Resources, expressed enthusiasm regarding the acquisition, highlighting the strong confidence from institutional investors and the strategic value aligned with Battalion’s assets. He stated that the management team possesses the requisite experience to optimize these resources effectively in one of the world's most fruitful basins.
Leadership’s Perspective
CEO Matt Steele of Battalion echoed Mirman’s sentiments. He emphasized the collaborative efforts leading to the successful path towards closing the merger. Both companies are committed to ensuring a smooth transition that benefits all stakeholders involved while emphasizing their dedication to enhancing shareholder value.
About Battalion Oil Corporation
Battalion Oil Corporation operates primarily within the U.S. energy sector, focusing on oil and natural gas exploration, development, and production. The company’s independent model allows for flexible operational strategies aimed at preserving shareholder interests while enhancing sustainability in its operations.
Understanding Fury Resources
Fury Resources, a privately held entity, specializes in exploration and production, predominantly within the Permian Basin. The seasoned team at Fury brings a wealth of experience and a proven record, aiming to create value through intelligent acquisitions and efficient asset management.
Frequently Asked Questions
What is the main objective of the merger between Battalion and Fury Resources?
The merger aims to consolidate Battalion’s assets and enhance operational efficiency, providing greater value to both companies' shareholders.
How much is Fury Resources paying for Battalion’s Common Stock?
The agreed price is set at $7.00 per share in cash, which reflects a solid valuation of Battalion's assets.
When is the expected completion date for the merger?
The merger is expected to close in the fourth quarter of this year, pending shareholder approval and other closing conditions.
What financial backing does Fury Resources have for this merger?
Fury has confirmed capital commitments totaling $200 million in debt and additional funds for preferred stock acquisitions, which solidify their capacity to complete the transaction.
Who are the main players in executing this merger?
Key advisors include Houlihan Lokey Capital, Inc. for Battalion and Jefferies LLC for Fury, ensuring strategic guidance throughout the transaction process.
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