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Oil & Gas Explorer-Producer 'Converts Defense to Offense,' Considers M&A Offers

Streetwise Reports
0 Comments|May 2, 2019

This Oklahoma company's latest play and near-term catalysts are covered in a Stifel report.


In an April 29 research note, Stifel analyst Derrick Whitfield reported that Roan Resources Inc. (ROAN:NYSE) formed a transaction committee to field inquiries by outside firms about consolidating assets or purchasing the company. "We expect the company to progress these indications of interests for the benefit of Roan Resources shareholders," he added. Roan holds acreage in the Merge, SCOOP and STACK plays.

Whitfield noted that a sale and a merger are possible outcomes. Regarding an acquisition, because Roan is currently trading for about $2,000 per acre, interest from entities in and out of the basin is expected. Given Roan's scale, a merger could happen within the Merge play, possibly with a company like Camino Natural Resources or Paloma Partners.

The conclusion of the transaction committee's efforts, for which there currently is no deadline, is an upcoming key catalyst, Whitefield pointed out. Another is the hiring of a permanent CEO for the company.

Stifel has a Buy rating and a $13 per share, 12-month target price on Roan Resources, whose stock is currently trading at around $5.42 per share.

 

Disclosure:
1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.

Disclosures from Stifel Nicolaus & Company, Roan Resources., April 29, 2019

I, Derrick Whitfield, certify that the views expressed in this research report accurately reflect my personal views about the subject securities or issuers; and I, Derrick Whitfield, certify that no part of my compensation was, is, or will be directly or indirectly related to the specific recommendations or views contained in this research report. Our European Policy for Managing Research Conflicts of Interest is available at www.stifel.com.

For a price chart with our ratings and any applicable target price changes for ROAN click here.

Stifel or an affiliate expects to receive or intends to seek compensation for investment banking services from Roan Resources, Inc. in the next 3 months.

The equity research analyst(s) responsible for the preparation of this report receive(s) compensation based on various factors, including Stifel's overall revenue, which includes investment banking revenue.

As a multi-disciplined financial services firm, Stifel regularly seeks investment banking assignments and compensation from issuers for services including, but not limited to, acting as an underwriter in an offering or financial advisor in a merger or acquisition, or serving as a placement agent in private transactions.

 


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