SeaBird Exploration and Energy Drilling are set to merge, and we initiate coverage of the combined entity with a Buy recommendation and a target price of NOK 8/sh. The new company, SED Energy Holdings, offers one of the most attractive risk-reward profiles within our coverage universe, supported by a cumulative FCF-yield of 66% (peers: 40%) and firm revenue coverage of 62% (58%) from 2025 to 2027. With a conservative capital structure (13% LTV’25), the company is projected to be net cash by 2026 ....
