SilverBow Resources Announces Closing of Eagle Ford Acquisition

Rhea-AI Summary

SilverBow Resources, Inc. (NYSE: SBOW) has successfully closed its all-stock acquisition of Eagle Ford oil and gas assets for a total of $33 million, effective June 1, 2021. The transaction involved approximately 1.5 million shares of SilverBow’s common stock. CEO Sean Woolverton highlighted the company's focus on enhancing production and EBITDA while managing cash flow effectively. This strategic acquisition aims to expand SilverBow's asset base and strengthen its financial position.

Positive

• Successful acquisition of Eagle Ford oil and gas assets for $33 million enhances production and EBITDA.
• Transaction executed entirely with common stock, minimizing cash outflow.
• Expected to expand operational inventory and strengthen market position.

Negative

• None.

HOUSTON--(BUSINESS WIRE)-- SilverBow Resources, Inc. (NYSE: SBOW) (“SilverBow” or “the Company”) announced today that it has closed its previously announced all stock transaction to acquire oil and gas assets in the Eagle Ford from an undisclosed seller. The aggregate purchase price for these assets was $33 million, subject to customary purchase price adjustments and a June 1, 2021 effective date. In accordance with the terms of the Purchase and Sale Agreement, the transaction consisted of approximately 1.5 million shares of SilverBow’s common stock.

MANAGEMENT COMMENTS

Sean Woolverton, SilverBow’s Chief Executive Officer, commented, “We continue to execute on our key objectives, as exemplified by the successful closing of this acquisition. Namely, we are growing production and EBITDA while living within cash flow, expanding inventory, driving a peer-leading cost structure and further de-levering our balance sheet. We seek to build on this momentum as we close out the year.”

ABOUT SILVERBOW RESOURCES, INC.

SilverBow Resources, Inc. (NYSE: SBOW) is a Houston-based energy company actively engaged in the exploration, development, and production of oil and gas in the Eagle Ford Shale in South Texas. With over 30 years of history operating in South Texas, the Company possesses a significant understanding of regional reservoirs which it leverages to assemble high quality drilling inventory while continuously enhancing its operations to maximize returns on capital invested. For more information, please visit www.sbow.com. Information on the Company’s website is not part of this release.

FORWARD-LOOKING STATEMENTS

This release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements represent management's expectations or beliefs concerning future events, and it is possible that the results described in this release will not be achieved. These forward-looking statements are based on current expectations and assumptions and are subject to a number of risks and uncertainties, many of which are beyond our control. Important factors that could cause actual results to differ materially from our expectations include, but are not limited to, risks and uncertainties discussed in the Company’s reports filed with the Securities and Exchange Commission. All forward-looking statements speak only as of the date of this news release. You should not place undue reliance on these forward-looking statements.

View source version on businesswire.com: https://www.businesswire.com/news/home/20211004005245/en/

Jeff Magids

Director of Finance & Investor Relations

(281) 874-2700, (888) 991-SBOW

Source: SilverBow Resources, Inc.

FAQ

What assets did SilverBow Resources acquire?

SilverBow Resources acquired oil and gas assets in the Eagle Ford region for $33 million.

When was the acquisition of Eagle Ford assets completed?

The acquisition was completed on June 1, 2021.

How many shares were involved in the SilverBow acquisition?

Approximately 1.5 million shares of SilverBow's common stock were used in the acquisition.

What is the expected impact of the acquisition on SilverBow Resources?

The acquisition is expected to enhance production and EBITDA while expanding operational inventory.

What was the total transaction value for the Eagle Ford acquisition?

The total transaction value for the acquisition was $33 million.