Macquarie Research rates AWE an Outperform as the industry is recognising value on offer. AWE has rejected a non-binding conditional scrip merger proposal from SXY at an implied share price of A$1.44/sh. The offer represented a 22% premium on AWE's closing price and was at a significant 20% and 51% discount to our core and risked NAV respectively. Macquarie Research maintain Outperform rating and continue to believe that AWE remains the cheapest stock across our mid-cap Energy sector coverage universe.