Saturn Oil & Gas (SOIL) jumped 17% on the back of its announced acquisition of Corex Resources for $302M. Corex shareholders owning >72% of the equity have entered into agreements in favour of the transaction, which is to close in December.

The deal will boost Saturn’s production to 54-56 MBoe/d as it exits 2026…

… and adds to its disciplined acquisition history, with $1.9B deployed across six major deals to drive production growth at attractive prices.

Post-close, oil will command a heavier weighting (~75%) within the broader portfolio…

… and margins should improve, driven by Corex’s materially higher netbacks and management expecting $2.85 per barrel of cost reduction on the acquired assets.

The company expects that will add $192M of run-rate NOI, supporting deleveraging towards sub-1x by the end of 2027…

… alongside the cash flow impact of higher oil prices, which has resulted in multiple expansion alongside Saturn’s maturation into a quality intermediate producer.

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