Cool Company Soars 20% on Acquisition Rumors: What’s Next for CLCO?

Summary
• CoolCo (CLCO) surges 20.1% premarket on $9.65/share acquisition offer by EPS Ventures
• Deal values shares at 26% premium to 9/22 close and 38% above 90-day VWAP
• EPS owns 59.3% of CoolCo and plans to support the merger

Cool Company Ltd. (CLCO) is trading at $9.33 as of 7:20 PM ET, up 20.1% on the day, following a blockbuster acquisition announcement. The stock has surged from a morning open of $9.29 to an intraday high of $9.39, driven by a potential $9.65/share cash merger with EPS Ventures. With a 52-week range of $4.51–$11.71 and a dynamic P/E of 11.78, the stock’s volatility reflects both the acquisition premium and broader market skepticism about the LNG sector’s near-term prospects.

Acquisition Offer Ignites CLCO's 20% Surge
CoolCo’s 20.1% intraday jump is directly tied to its announcement of a potential $9.65/share cash merger with EPS Ventures, a deal representing a 26% premium to its 9/22 close and a 38% premium to its 90-day volume-weighted average price. The transaction, which would delist CLCO from the NYSE and Oslo exchanges, has triggered a surge in short-term demand as shareholders price in the likelihood of the deal’s completion. EPS, already owning 59.3% of CoolCo, plans to support the merger, reducing uncertainty about shareholder approval. However, the stock’s 52-week low of $4.51 and a dynamic P/E of 11.78 suggest lingering skepticism about the company’s standalone fundamentals, with the rally driven purely by merger arbitrage logic.

Midstream Sector Mixed as CLCO Outperforms
The Oil & Gas Midstream sector has seen mixed results, with peers like Enterprise Products and Phillips 66 announcing asset acquisitions and expansions. However, CoolCo’s 20.1% surge far outpaces sector averages, as its acquisition premium and delisting timeline create a unique catalyst. While midstream players like Western Midstream and ONEOK have posted gains on infrastructure deals, CLCO’s move is purely event-driven, with no direct correlation to sector trends like LNG demand or pipeline capacity expansions.

Options and ETFs for CLCO's Volatile Outlook
• RSI: 56.21 (neutral) • MACD: 0.0706 (bullish) • 200-day MA: $6.93 (far below current price) • Bollinger Bands: $7.44–$8.13 (price at $9.33, above upper band)

CLCO’s technicals suggest a short-term overbought condition, with RSI at 56.21 and MACD crossing above the signal line. However, the stock’s 200-day MA of $6.93 and Bollinger Bands (upper: $8.13) indicate a potential pullback to test key support levels. While no options are listed, traders should monitor the $9.65 merger price as a critical resistance. A break above $9.65 could trigger a re-rating, while a close below $9.00 may signal waning merger optimism. Given the absence of leveraged ETFs and options, a cash-secured collar strategy—buying a $9.00 put and selling a $9.65 call—could hedge against volatility while capturing merger arbitrage upside.

Backtest Cool Company Stock Performance
I attempted to retrieve the intraday-price data for “CLCO.N” so I could locate every session since 1-Jan-2022 in which the price spiked ≥ 20 % during the day and then run the post-event back-test. The data request came back empty, which usually means one of the following:1. The ticker symbol format isn’t recognized by the data provider. • For a U.S.-listed Cool Company the quote is normally just “CLCO”. • If you intended a different exchange (Oslo, for example), we may need the local code (e.g., “CLCO.OL”) instead of “CLCO.N”.2. Intraday (high/low) history for this instrument isn’t available in the database we’re querying. • If that’s the case, we can fall back to daily close-to-close moves ≥ 20 % (less precise, but still actionable), or you can manually supply the event dates.How would you like to proceed?A. Confirm the correct ticker symbol (e.g., “CLCO” vs “CLCO.OL”). B. Use daily close jumps ≥ 20 % instead of intraday highs. C. Provide the event dates manually. D. Something else (please specify).Once I have that clarification, I’ll fetch the data again and complete the back-test.

CLCO at Critical Juncture: Buy the Rumor or Wait?
CoolCo’s 20.1% surge reflects a high-stakes bet on the $9.65 merger price, but the stock’s 52-week low of $4.51 and a dynamic P/E of 11.78 highlight structural risks. While the acquisition premium offers immediate upside, the stock’s technicals—particularly its overbought RSI and price above Bollinger Bands—suggest caution. Investors should watch for a breakout above $9.65 or a breakdown below $9.00 to determine the next move. Meanwhile, the sector’s mixed performance, with Teekay (TK) down 0.74%, underscores CLCO’s unique event-driven narrative. For now, the key takeaway is clear: position for a $9.65 target or tighten stops below $9.00.