Falcon Energy

Falcon Energy: Its voluntary conditional cash offer for CH Offshore at $0.495/share translates to 10.6x FY14 EPS and 1.085x book value, compared to the FTSE ST O&G Index of 8.8x P/E and six-year median of 11.7x. Voyage reckons that the offer will likely allow Falcon to expand its fleet at an attractive price, while offering relative premium to existing CHO shareholders. House maintains its Increase Exposure rating, but lowers TP to $0.555 (from $0.58).