M&A · Energy · Crude Petroleum & Natural Gas
Sitio Royalties Corp. to acquire Brigham Minerals, Inc.
Announced Sep 6, 2022 · Closed Dec 29, 2022
Deal value$4.80BEV $4.80B
Premium—To unaffected price
EV / Adj. EBITDA22.3x19.4x EV / Revenue
ConsiderationAll stock
Transaction
- Acquirer
- Sitio Royalties Corp. (STR)
- Target
- Brigham Minerals, Inc. (MNRL)
- Buyer type
- Strategic
- Offer price per share
- —
- Enterprise value
- $4.80B
- Status
- Closed Dec 29, 2022
Deal protections
- Break fee (target pays)
- $65.0M · 1.4%
- Reverse fee (buyer pays)
- $75.0M · 1.6%
- Go-shop
- No-shop
- Financing
- —
Advisors
- To the acquirer
- Credit Suisse
- To the target
- Goldman Sachs
- Credit Suisse fee
- $9.0M
Sector context · Energy
- Comparable deals
- 38 in the prior 24 months
- Premium
- Sector median 28.6%
- EV / Adj. EBITDA
- 22.3x vs. 12.2x sector median
- Break fee
- 1.4% vs. 2.6% sector median
Timeline
- AnnouncedSep 6, 2022
- Proxy filedNov 23, 2022
- Definitive proxyNov 23, 2022
- Shareholder voteDec 28, 2022
- ClosedDec 29, 2022
Valuation · fairness opinions
Trading comparablesCredit Suisse$25.47$30.19
Trading comparablesCredit Suisse$23.89$27.44
Discounted cash flowCredit Suisse$29.12$37.05
Discounted cash flowCredit Suisse$32.29$41.45
Discounted cash flowCredit Suisse$30.54$38.91
Discounted cash flowGoldman Sachs$24.57$32.30
Discounted cash flowGoldman Sachs$29.67$37.53
Discounted cash flowGoldman Sachs$21.71$27.17
Discounted cash flowGoldman Sachs$30.63$38.89
Premiums paidGoldman Sachs$27.16$30.31
Implied value per Brigham Minerals, Inc. share by analysis, from Credit Suisse and Goldman Sachs · DCF discount rate 8.5%–10.5%.