Macquarie Research rates AWE an Outperform as the industry is recognising value on offer

Macquarie Research rates AWE an Outperform as the industry is recognising value on offer. AWE has rejected a non-binding conditional scrip merger proposal from SXY at an implied share price of A$1.44/sh. The offer represented a 22% premium on AWE's closing price and was at a significant 20% and 51% discount to our core and risked NAV respectively. Macquarie Research maintain Outperform rating and continue to believe that AWE remains the cheapest stock across our mid-cap Energy sector coverage universe.