Sabine’s existing management team will run the merged company, which will be called Sabine Oil & Gas Corp. Under the all-stock merger, FST shareholders will hold 26.5% of the combined entity, with the remaining stake owned by Sabine unitholders, Bloomberg notes.
The merger will be a tax-free deal for FST shareholders. Shares of the merged company will be listed on the New York Stock Exchange.
In addition to the merger, FST reported an adjusted net loss of $3 million during the first quarter. Adjusted EPS showed a loss of 2 cents, matching Wall Street expectations. FST posted quarterly revenue of $65.19 million for the quarter. Analysts had forecast revenue of $65.20 million, Ticker Report noted.
On Monday, FST stock closed at $1.79 per share.
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