You can find original article here WealthManagement. Subscribe to our free daily WealthManagement newsletters. Registered investment advisors Cerity Partners and Carson Group have made their first deal announcements of the year, marking an already acquisitive start for wealth managers. Cerity announced Tuesday that Austin Private Wealth would be joining the RIA, bringing $1.4 billion in assets under management.  APW was founded in 2006 by Raoul Célèrier and Dan Kraus with Ameriprise, but transitio ...

Core Viewpoint - Shenhua Energy is acquiring twelve assets from its parent company, China National Energy Group, for a total consideration of RMB133.6 billion, which is expected to significantly enhance its coal resources and production capacity [1][3]. Acquisition Details - The acquisition will be financed with 30% of the consideration paid through the issuance of 1,363 million new A shares at RMB30.38, while the remaining 70% will be paid in cash [2]. - The deal is subject to approvals from relevant government authorities and independent shareholders [4]. Impact on Company Metrics - The acquisition is projected to increase Shenhua's coal resources by 65%, recoverable coal reserves by 98%, and coal output by 57% [3]. - Installed power generation capacity will rise by 28%, and production capacity of polyolefin will increase by 2.1 times [3]. - The proforma EPS is expected to enhance by 6% in 2024 and 5% in the first seven months of 2025 [3]. Shareholder Protection - To protect minority shareholders, profit guarantees have been secured for various coal assets for the next three to six years, although there are no guarantees for power and coal-chemical operations [4][6]. Financial Considerations - The target assets will require total capital expenditure of RMB70-80 billion over the next five years, but the operating cash flow from these assets is expected to cover this expenditure [5]. - The consideration values the target assets at 17 times the estimated earnings for 2025 based on annualized earnings for the first seven months of 2025 [4]. Concerns - Approximately 60% of the coal resources from the target assets are located in Xinjiang Autonomous Region, where Shenhua currently has no operations, and coal prices are lower compared to Inner Mongolia and Shaanxi Province, potentially affecting long-term profitability [6]. Rating and Target Price - The company's forecasts and HOLD rating remain unchanged, with a target price for Shenhua's H shares set at HK$42.5, reflecting a 5% average dividend yield for 2025-2027 [7].

Core Insights - Ovintiv Inc. (OVV) has experienced a slight decline of 0.6% in its share price over the past month, outperforming its sector's decline of 3.1% and sub-industry's loss of 6.2%, indicating relative strength and favorable positioning [1][7] - The company has shifted its focus from natural gas to higher-margin crude oil, enhancing its status among North American exploration and production players [2] - Investors are debating whether OVV's recent strong performance can continue or if it has already priced in much of the potential upside [3] Positive Factors - The 12-year Cedar LNG agreement with Pembina secures 0.5 million tons per annum (mtpa) of liquefaction capacity starting in 2028, expanding Ovintiv's access to premium Asian LNG markets and improving long-term pricing and cash flow visibility [4] - The acquisition of NuVista Energy is projected to increase free cash flow per share by 10%, while being leverage-neutral at close and enhancing inventory quality in the Montney oil window [5] - Ovintiv controls a deep inventory in top-tier basins, with nearly 15 years of drilling runway, supporting sustained production and long-term value creation [8] Operational Efficiencies - The NuVista acquisition is expected to generate $100 million in annual synergies, enhancing margins and returns through capital savings and operational efficiencies [9] - Ovintiv's integration strategy leverages AI-driven drilling and centralized operations, which have previously led to rapid synergy capture [9] Challenges - Ovintiv recorded a $108 million after-tax ceiling test impairment in Q3, indicating sensitivity to commodity pricing and potential long-term valuation risks [10] - The company's growth outlook is heavily reliant on the successful execution of large acquisitions, with integration risks that could impact projected free cash flow [11] - The Zacks Consensus Estimate for Ovintiv's 2025 earnings is projected at $4.35 per share, reflecting a 25.4% year-over-year decline, raising concerns about cash flow durability [12] Earnings Estimates - The Zacks Consensus Estimate for Ovintiv's earnings has been revised downward by about 3% over the past 30 days, indicating increased caution among analysts regarding the company's near-term outlook [12][15] - Current estimates for earnings per share in the upcoming quarters show a significant decline compared to the previous year, with a year-over-year growth estimate of -36.3% for the current quarter [13][15] Final Assessment - Ovintiv has demonstrated strong performance relative to its sector and is strengthening its fundamentals through strategic acquisitions, but faces headwinds from non-cash impairments and reliance on successful integration of acquisitions [16][17]

Core Insights - Aberdeen Investments has signed an agreement to acquire MFS' management of closed-end fund assets totaling £1.5bn ($2bn) [1] - The transaction will consolidate nine MFS funds and one Aberdeen CEF into two active CEFs, enhancing scale [1][2] - A new municipal bond fund with approximately $1bn in AUM will be created by merging four MFS municipal bond CEFs and one Aberdeen municipal bond CEF [1] - Five MFS taxable fixed income funds will combine to form a multi-sector fixed income closed-end fund, including private credit, with around $1.4bn in AUM [2] - Jonathan Mondillo, Aberdeen's fixed income global head, will manage both newly formed funds [2] - No employees or corporate entities will be transferred as part of the acquisition [2] - Aberdeen Group CEO Jason Windsor expressed satisfaction with the acquisition, highlighting its synergistic nature [2] - The firm aims to become the UK's leading Wealth and Investment group, focusing on areas of strength with significant growth potential [3] - As of September 30, 2025, Aberdeen Investments managed approximately £382bn on behalf of clients [3] - The acquisition reflects Aberdeen's strategy to enhance its US closed-end fund platform [2][3] - MFS has a historical significance in the mutual fund industry, having pioneered US mutual funds in 1924 [4] - Earlier in August, Aberdeen Group agreed to divest its financial planning unit to Ascot Lloyd [4]

You can find original article here WealthManagement. Subscribe to our free daily WealthManagement newsletters. Bluespring Wealth Partners, the registered investment advisor acquisition arm of Kestra Holdings, brought on an annual record of $6 billion in client assets via acquisition in 2025 through a mix of independent RIAs, broker/dealer breakaways and Kestra-affiliated advisors. The acquired assets came from nine partner firms joining Bluespring’s fee-only, W-2 employee model. They included Kestr ...

Summary of Diversified Energy Company FY Conference Call Company Overview - **Company Name**: Diversified Energy Company (NYSE: DEC) - **Industry**: Energy Production - **Focus**: Acquiring and optimizing long-life, low-decline energy assets across the U.S. [1][2] Core Business Model - **Acquisition Strategy**: Focus on mature, cash flow-generating energy assets, specifically PDP (producing developed producing) assets [3][4] - **Cost Structure**: Acquisitions are financed with a lower cost of capital, typically in the sub-10% range, utilizing asset-backed securities (ABS) [3][6] - **Operational Scale**: Operates with a workforce of 2,000 employees across 11 states, enhancing synergies and margin improvements [4][6] Financial Performance - **Production Metrics**: Over $1 billion in annualized EBITDA, with a market cap of approximately $1.1-$1.2 billion [11][9] - **Cash Flow Allocation**: $440 million projected free cash flow for 2025, with 20% allocated to dividends [10][9] - **Share Repurchases**: Approximately $61 million in share repurchases, representing about 6% of shares outstanding [9][10] Growth and Acquisitions - **Acquisition History**: Completed 30 acquisitions in the PDP space over the last seven years, all accretive on a per-share basis [12][4] - **Future Opportunities**: Anticipates $70 billion-$90 billion in assets coming to market over the next couple of years due to industry consolidation [12][16] - **Recent Acquisitions**: Notable acquisition of Canvas Energy for $550 million, with $400 million financed through Carlyle [18][19] Capital Allocation and Financing - **Debt Structure**: Primarily utilizes ABS for financing, with an overall cost of capital around 6-6.5% [39][40] - **Dividend Policy**: Fixed dividend yield of 7-8%, not tied to commodity prices [10][9] Environmental and Regulatory Considerations - **Emissions Management**: Rated AA for emissions performance, with a focus on sustainable asset management [26][27] - **Partnerships**: Collaborates with technology providers for emissions measurement and mitigation [22][23] Market Position and Future Outlook - **Market Transition**: Transitioning to primary listing on the New York Stock Exchange, enhancing access to a broader investor base [30][31] - **Investment Thesis**: Positioned as a best-in-class small-cap investment opportunity with a strong focus on cash flow generation and disciplined capital allocation [32][30] Key Challenges and Considerations - **Operational Risks**: Corporate decline rate estimated at 10%, managed through acquisitions and land sales [41][42] - **Regulatory Environment**: Cautious approach to new basin acquisitions due to regulatory uncertainties, particularly in states like Colorado [36][37] Conclusion - **Strategic Focus**: Diversified Energy Company emphasizes disciplined acquisitions, strong cash flow management, and sustainable practices to enhance shareholder value and position itself for future growth in the energy sector [32][12]

Financial Data and Key Metrics Changes - Total revenue for Q3 2025 was approximately $500 million, with adjusted EBITDA reaching a record $286 million, resulting in an EBITDA margin of 66% [18][19] - Free cash flow for the quarter was $144 million, impacted by approximately $9 million in non-recurring and transaction costs [19] - Net debt stood at approximately $2.5 billion, with a leverage ratio improved by 20% since year-end 2024, achieving a target level of 2 to 2.5 times net debt to EBITDA [19] Business Line Data and Key Metrics Changes - Daily production exit rate for September was approximately 1.14 BCF per day, with quarterly production averaging over 1.13 BCF per day, primarily generated in the central region [17][18] - The company has significantly transformed and strengthened its operations through acquisitions, with year-over-year growth in EBITDA and cash flow nearly doubling [6][25] Market Data and Key Metrics Changes - The company has seen a nearly 400% increase in daily trading volume since executing the initial dual listing approximately 20 months ago, with U.S. ownership expanding to over 65% of shares outstanding [11] - The market for oil and natural gas producers has remained dynamic throughout 2025, presenting both challenges and opportunities [8] Company Strategy and Development Direction - The company focuses on optimizing cash flow from low-decline energy assets while pursuing growth through strategic acquisitions and disciplined capital allocation [4][6] - The recent acquisition of Maverick Natural Resources and the anticipated closing of Canvas Energy are expected to enhance operational leverage and cash flow generation [5][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to generate consistent cash flow and deliver strong operational results, emphasizing the importance of disciplined capital allocation [7][25] - The company anticipates generating between $900-$925 million in adjusted EBITDA and over $440 million in adjusted free cash flow for the full year [25] Other Important Information - The company is moving its primary equity listing to the New York Stock Exchange and re-domiciling to a U.S. corporate entity, which is expected to enhance trading liquidity and increase exposure to U.S. investors [10][11] - A partnership with the Governor of West Virginia has led to the establishment of a fund for the retirement of wells, addressing a significant liability for the company [12][13] Q&A Session Summary Question: What are the uses of free cash flow considering the current leverage? - Management indicated that the best use of cash will be determined based on the situation, with a focus on share repurchases due to undervaluation, while also considering growth opportunities [31][32] Question: Can you discuss the Mountain State Plug-in Fund and its potential replication in other states? - Management highlighted the fund as a win-win solution for the industry and the state, expressing hope for similar arrangements in other states, particularly in Appalachia [33][36] Question: What is the current state of the ABS market? - Management noted a high appetite for ABS financing, which has become popular in the industry, providing a low cost of capital for growth [38][40] Question: Can you provide an update on joint development agreements in the Western Anadarko assets? - Management reported strong returns from ongoing joint development in the Cherokee Basin, with plans for future evaluations of acreage for potential new agreements [42][44] Question: Will there be adjustments to the asset retirement obligation (ARO) figure in Q4? - Management clarified that while there will be no immediate accounting adjustment to the ARO, the Plug-in Fund addresses a significant portion of the liability [45][46]

Core Insights - Clearway Energy (CWEN) has entered into a binding agreement to acquire a 613 MWac operational solar portfolio from Deriva Energy, enhancing its presence in the CAISO and PJM markets [1] - The acquisition includes a 50/50 joint venture with Fengate Asset Management for 12 assets in the Western US, totaling 227 MWac [1] - The portfolio has a weighted average contract life of 10 years, aligning with Clearway's existing fleet and offering potential for value enhancement through contract extensions and battery hybridization [1] Financial Overview - The total long-term corporate capital investment in the portfolio is expected to be approximately $210M-230M, factoring in estimated closing adjustments and asset-level financings [1] - The investment is projected to be immediately accretive, with a 5-year annual CAFD yield over 12%, resulting in an incremental five-year average annual asset CAFD of approximately $27M starting January 1, 2027 [1] - The transaction is anticipated to close by the second quarter of 2026, with funding expected to be within the previously disclosed capital allocation framework [1]

Core Viewpoint - TotalEnergies has agreed to acquire a 49% interest in natural gas-producing assets in the Anadarko Basin, Oklahoma, enhancing its natural gas production capabilities in the US [1][3]. Group 1: Acquisition Details - The assets are owned by Continental Resources and are connected to the Henry Hub through existing midstream infrastructure [1]. - The expected gross production potential of these assets is approximately 350 million standard cubic feet per day (mscf/d) by 2030, with the ability to maintain this production level over the long term [1]. - TotalEnergies anticipates securing around 150 mscf/d of gas production from this acquisition [2]. Group 2: Strategic Implications - This acquisition complements TotalEnergies' previous acquisitions in the Eagle Ford Basin, specifically the Dorado and Constellation assets [2]. - The company also operates technical production of about 500 mscf/d in the Barnett, further solidifying its position in the US natural gas market [2]. - TotalEnergies aims to enhance its integrated LNG position with low-cost and low-emission gas production through this acquisition [3]. Group 3: Partnerships and Other Acquisitions - TotalEnergies is partnering with Continental Resources, recognized for its technical expertise and operational excellence in the Anadarko Basin [3]. - In addition to this acquisition, TotalEnergies has also secured a 25% interest in Block 53 offshore Suriname and a 25% working interest in a portfolio of US offshore exploration leases from Chevron [4].

Core Insights - Chord Energy Corporation (CHRD) will acquire Williston Basin assets from XTO Energy for $550 million in cash, enhancing its position in the shale basin [1][7] Acquisition Details - The transaction includes 48,000 net acres in the Williston Basin, with CHRD holding an 86% operated working interest and the acreage being 100% held by production [2] - The acquisition adds 90 net drilling sites, many overlapping with existing operations, allowing for long-lateral drilling to improve efficiency and reduce production costs [2] - The assets have a forecasted decline rate of approximately 23% [2] Production and Economics - The acquired assets are expected to contribute 9,000 barrels of oil equivalent per day, with 78% being oil [3] - Breakeven costs for the assets are in the $40 per barrel range, allowing for sustainable operations during low commodity price periods [3] - The transaction is expected to lower the overall breakeven cost for CHRD's asset portfolio [3] Financial Impact - The acquisition is anticipated to improve shareholder returns and be immediately accretive across key financial metrics [4] - The assets are expected to generate sustainable free cash flow, enhancing capital returns to shareholders [4] - CHRD plans to maintain a leverage ratio between 0.5x and 0.6x upon closing, with a goal to return to a 0.5x leverage ratio by 2026 [4] Shareholder Return Policy - CHRD returns approximately 50% of its adjusted free cash flow while maintaining leverage between 0.5x and 1.0x, and nearly 75% when leverage is below 0.5x [5] - In the third quarter, the company executed buybacks worth $83 million to reward shareholders [5]