
Battalion Oil (BATL) announced it is terminating a merger agreement with Fury Resources first announced in December 2023. (Source: T. Schneider/Shutterstock.com)
Battalion Oil (BATL) announced it is terminating a merger agreement with Fury Resources first announced in December 2023.
Battalion cited Fury’s failure to meet financial deadlines as the reason for termination.
“As of this morning, Fury was not able meet the obligations and close the transaction contemplated by the merger agreement,” Battalion Oil said in a statement. “Over the past year, in order to facilitate the transaction, the company and Fury entered into numerous amendments to the terms of the merger agreement.”
Battalion canceled a special meeting of stockholders scheduled for Dec. 27 as part of the announcement.
The companies announced the merger on Dec. 15, 2023. Private E&P Fury offered to buy public Battalion Oil, a Permian-based company, for $9.80 per share in cash for a total transaction value of about $450 million.
Battalion’s preferred stockholders—Luminus Management LLC, Gen IV Investment Opportunities LLC and Oaktree Capital Management LP, and their affiliates—agreed to roll over their preferred stock in exchange for new preferred shares issued by Fury.
Fury eventually amended the offer to lower the buyout price 29% to $7 per share, Battalion executives reported during its second-quarter earnings call on Aug. 14.
“The modified offer is contingent on the existing holders of the company's Series A through Series A-4 preferred equity rolling 100% of their preferred equity into new preferred equity in the surviving company following the merger in order to help support the transaction,” Battalion wrote in a filing.
Battalion and Fury announced the merger was a go again in September. The new terms valued Battalion’s market capitalization at approximately $115.2 million, based on roughly 16.45 million outstanding Battalion shares.
In November, however, Battalion announced in an SEC filing that Fury had missed a deadline to deposit $160 million into an escrow account in support of the merger. A month later, Battalion made the Dec. 20 public announcement the company had ended merger talks.
Recommended Reading
Crescent Energy Bolts On $905MM Central Eagle Ford Acreage
2024-12-03 - Crescent Energy will purchase Eagle Ford assets from Carnelian Energy Capital Management-backed Ridgemar Energy for $905 million, plus WTI-based contingency payments of up to $170 million.
Vitesse Energy to Buy Bakken Pureplay Lucero in $220MM Deal
2024-12-16 - Vitesse Energy will acquire Lucero Energy’s Bakken/Three Forks assets, including 25 net remaining locations, 1.9 net DUCs and 20 wells that are candidates for recompletions.
Crescent Energy Closes $905MM Acquisition in Central Eagle Ford
2025-01-31 - Crescent Energy’s cash-and-stock acquisition of Carnelian Energy Capital Management-backed Ridgemar Energy includes potential contingency payments of up to $170 million through 2027.
Atlas Energy Solutions to Acquire OFS Power Company Moser for $220MM
2025-01-27 - Atlas Energy Solutions said it will purchase Moser Energy Systems in a cash-and-stock deal that adds power services in the company’s core Permian Basin operating area.
Prairie Operating to Buy Bayswater D-J Basin Assets for $600MM
2025-02-07 - Prairie Operating Co. will purchase about 24,000 net acres from Bayswater Exploration & Production, which will still retain assets in Colorado and continue development of its northern Midland Basin assets.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.