Energy, Space De-SPACs See Gains in Day 4 of Gaza War
by Nicholas Alan Clayton on 2023-10-10 at 2:41pm

Relative positivity has continued into a second straight day this week as the market leans perhaps more into encouraging signs around the future of interest rates than the prospect of renewed conflict in the Middle East.

Those jitters nonetheless appear to have propelled de-SPACs in the oil and gas sector to a good day despite the fact that oil prices themselves remain largely unchanged.

Oil & gas has generally been fruitful for SPACs in general with 19 such deals completed since December 2012. Of this group, three either last closed or were earlier acquired for more than $20 per share and four more continue to trade in the teens.

Sitio Royalites (NYSE:STR), which combined with Osprey Energy in 2018 is up +1.2% on the day to about $23.86 while TPG Pace Energy‘s target Magnolia Oil & Gas (NYSE:MGY) was similarly up about +1% to $22.71 as of this writing.

Satellite companies that got to market via SPAC deals have seen even bigger bumps today. With much of their revenue coming from the defense sector and conflict-researchers, the market appears to see them as having new work in the pipeline.

BlackSky (NYSE:BKSY) is on a +18% run two years out from completing its combination with Osprey Technology, while Israeli satellite operator Satixfy (NYSE:SATX) is recovering +27.7% after taking a hit yesterday in the market’s initial reaction to the new Gaza violence

Peer space de-SPACs Terran Orbital (NYSE:LLAP), Rocket Lab (NASDAQ:RKLB) are each up about +5%, while AST SpaceMobile (NASDAQ:ASTS) has seen a +7.7% boost in the early afternoon and Planet Labs (NYSE:PL) is up +1.7%.

The outlier in the group that has not been taken on a similar ride is Satellogic (NASDAQ:SATL) which is down -2.7% so far today.

Overall, these companies, given their early and in some cases pre-profitability nature, have not been graced with the same enthusiasm as oil and gas de-SPACs overall, however, and they all collectively last closed at a median share price of $0.78, adjusted for stock splits.

 

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