BOW Energy and Eastern Star Gas are potential takeover targets, Credit Suisse has flagged.
Bow has an ambitious goal to prove up coal seam gas reserves in Queensland but has some way to go and Credit Suisse says it probably won’t attract attention until it makes more progress.
“Acquiring Bow’s success could shortcut the commitment to more expansion trains or provide additional reserves cover for the big LNG joint ventures”, Credit Suisse said in a client note.
The analysts’ believe that ESG’s most likely suitor is Santos, which could use ESG reserves to supply domestic gas contracts, allowing it to free up Queensland reserves for LNG.
It said Origin has adequate reserves and is unlikely to be looking to amass them at the moment.
Dow Jones Newswires
ESG Price at posting:
80.0¢ Sentiment: None Disclosure: Held
