SilverBow Resources Announces First Quarter 2024 Financial and Operating Results
SilverBow Resources, Inc. (NYSE: SBOW) announced strong first quarter 2024 financial results, exceeding expectations, driven by increased production and reduced capital expenditures. The Company posted record EBITDA and free cash flow, with total debt reduced by $178 million since a recent acquisition. The outlook for the full year 2024 includes higher production and free cash flow estimates, with a focus on oil and liquid developments. SilverBow continues to optimize investments and aims to achieve long-term leverage ratio targets.
Strong first quarter 2024 financial results exceeding expectations
Record EBITDA and strong free cash flow reported
Total debt reduced by $178 million since the recent acquisition
Increased full-year production and free cash flow outlook
Optimized 2024 investments with 85% allocated to higher-return oil and liquids developments
Successful integration of South Texas acquisition leading to greater scale and cash flow generation
Net loss of $16 million reported for the first quarter of 2024
Unrealized loss on derivative contracts impacted financials
Leverage ratio at 1.35x, aiming for less than 1.0x by 2025
Reduced activity to two rigs in June 2024
Challenges include reducing total debt to meet long-term targets
Insights
Results top consensus expectations driven by higher production and lower capital expenditures generating record quarterly EBITDA and strong quarterly free cash flow
Total debt reduced by
Year-to-date outperformance leads to increase in full-year production expectations and free cash flow outlook
First Quarter 2024 Highlights:
-
Reported average net production in the upper half of guidance of 91.4 thousand barrels of oil equivalent per day (“MBoe/d”) (
46% oil/liquids); grew year-over-year net oil production by116% to 24.5 thousand barrels of oil per day (“MBbls/d”); increases reflect theSouth Texas acquisition in late 2023 and ongoing gains in well productivity and cycle time efficiencies -
Invested
$109 million 20% below consensus expectations -
Generated a net loss of
$16 million $0.61 $90 million $5 million $200 million $56 million -
Reduced total debt by
$178 million South Texas acquisition in late 20231. Leverage ratio at the end of the first quarter was 1.35x2, less than SilverBow's leverage ratio prior to the acquisition announcement -
Enhanced 2024 outlook, raised full year production, FCF and debt reduction expectations:
-
Production expectations raised
5% to a midpoint of 94 MBoe/d, with oil/liquids representing48% of volumes -
FCF estimate increased
$50 million 36% , to a midpoint of$188 million -
The Company further optimized its planned 2024 investments and is now allocating
85% of capital to higher-return oil and liquids developments. Full year capital program of$470 $510 million - Lowered expected year-end leverage ratio to approximately 1.25x on accelerated debt paydown and expect to attain long-term target of less than 1.0x in 2025
-
Production expectations raised
- Through multiple transactions over the last three years and culminating with a recent acreage trade, SilverBow has assembled a contiguous 25,000 gross acre position in the liquids-rich window of the Eagle Ford. The Company has drilled six wells on the position with well results and returns exceeding expectations. This position holds an estimated 150-plus high-return development locations. SilverBow plans to drill 10-12 additional wells on the asset this year
-
Implemented a successful refrac program with initial wells demonstrating internal rates of return of more than
100% . SilverBow has identified more than 100 refrac opportunities and plans additional refracs in 2024 - The Company drilled its first horseshoe (U-shaped) well in the Austin Chalk, proving its ability to capture significant upside through development of complex acreage configurations. More than 30 horseshoe development locations have been identified
-
Delivered significant operational achievements year-to-date which are expected to lead to sustainable capital efficiencies and recovery of additional resources.4 SilverBow's drilling performance on its first 10 wells on the
South Texas acquisition acreage exceeds the prior operator's performance by30%
MANAGEMENT COMMENTS
Sean Woolverton, SilverBow’s Chief Executive Officer, said, "Our first quarter results were outstanding and are an indicator of the trajectory of our business. With the successful integration of our
Mr. Woolverton commented further, "We are clearly demonstrating our recent transaction is highly accretive to the business and accelerates delivery of our stated strategy to create further value for all shareholders."
FIRST QUARTER 2024 FINANCIAL AND OPERATING SUMMARY
For the first quarter of 2024, SilverBow reported a net loss of
Stated without the impact of hedging, crude oil and natural gas realizations in the quarter were
Total production expenses in the quarter, which include lease operating expenses, transportation and processing expenses and production taxes, were
Capital investments for the quarter totaled
OPERATIONS UPDATE
SilverBow operated three rigs in the quarter, with operations primarily focusing on the Central Oil, Western Condensate and Eastern Extension areas, and brought online 12 net wells. The Company plans to reduce activity to two rigs in June 2024.
Specific to the
In line with SilverBow's strategic goal of building a scaled and durable portfolio, the Company completed a land swap with a third party subsequent to the first quarter; which aided in assembling a contiguous 25,000 gross acre position. The total position has more than 150 prospective liquids-rich locations in
In the first quarter, the Company advanced key operational achievements, including highly-successful refracs and drilling of our first horseshoe (U-shaped) well in the Austin Chalk. Both efforts significantly enhanced returns and can be repeated across SilverBow's portfolio.
The first two refracs were each completed for under
SilverBow recently drilled an 8,900 foot horseshoe (U-shaped) lateral well in
2024 OUTLOOK
For the second quarter of 2024, SilverBow expects its production to be 90.8 - 95.4 MBoe/d, with oil volumes of 23.5 - 25.0 MBbls/d. For the full year 2024, the Company increased its production guidance to 90.0 - 97.3 MBoe/d. Based on the revised guidance, SilverBow's full year 2024 oil/liquids volumes are expected to comprise
SilverBow increased its estimate for full year 2024 free cash flow to
RISK MANAGEMENT
SilverBow has a proven track record of effectively managing commodity price risks through the use of derivatives. As of April 26, 2024, the Company had
CAPITAL STRUCTURE AND LIQUIDITY
As of March 31, 2024, SilverBow had approximately
As of March 31, 2024, SilverBow reported total debt of
CONFERENCE CALL DETAILS
SilverBow plans to host a conference call for investors at 9 a.m. CT (10 a.m. ET) on Thursday May 2, 2023. Investors and participants can listen to the call by dialing 1-800-715-9871 (
ABOUT SILVERBOW RESOURCES, INC.
SilverBow Resources, Inc. (NYSE: SBOW) is a
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. All statements, other than statements of historical fact included in this press release, including those regarding our strategy, the benefits of the acquisitions, future operations, guidance and outlook, financial position, well expectations and drilling plans, estimated production levels, expected oil and natural gas pricing, long-term inventory estimates, estimated oil and natural gas reserves or the present value thereof, reserve increases, service costs, impact of inflation, future free cash flow and expected leverage ratio, value and development of locations, capital expenditures, budget, projected costs, prospects, plans and objectives of management are forward-looking statements. When used in this report, the words “will,” “could,” “believe,” “anticipate,” “intend,” “estimate,” “budgeted,” “guidance,” “expect,” “may,” “continue,” “potential,” “plan,” “project,” "positioned," "should" and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. Important factors that could cause actual results to differ materially from our expectations include, but are not limited to, the following risks and uncertainties: further actions by the members of the Organization of the Petroleum Exporting Countries,
All forward-looking statements speak only as of the date of this release. You should not place undue reliance on these forward-looking statements. The Company’s capital budget, operating plan, service cost outlook and development plans are subject to change at any time. Although we believe that our plans, intentions and expectations reflected in or suggested by the forward-looking statements we make in this release are reasonable, we can give no assurance that these plans, intentions or expectations will be achieved. The risk factors and other factors noted herein and in the Company's SEC filings could cause its actual results to differ materially from those contained in any forward-looking statement. These cautionary statements qualify all forward-looking statements attributable to us or persons acting on our behalf.
All subsequent written and oral forward-looking statements attributable to us or to persons acting on our behalf are expressly qualified in their entirety by the foregoing. We undertake no obligation to publicly release the results of any revisions to any such forward-looking statements that may be made to reflect events or circumstances after the date of this release or to reflect the occurrence of unanticipated events, except as required by law.
(Footnotes)
1 As of April 30, 2024, the Company had
2 Leverage ratio is defined as total long-term debt, before unamortized discounts, divided by Adjusted EBITDA for Leverage Ratio (a non-GAAP measure defined and reconciled in the tables included in this release) for the trailing twelve-month period.
3 Adjusted EBITDA, Adjusted EBITDA for Leverage Ratio and FCF are non-GAAP measures defined and reconciled in the tables included in this release.
4 See details in the Company's corporate presentation posted on its website regarding reinvigorating existing wells, drilling horseshoe (U-shaped) wells to optimize development and further drilling enhancements on its
(Financial Highlights to Follow)
Condensed Consolidated Balance Sheets(Unaudited) SilverBow Resources, Inc. and Subsidiary (in thousands, except share amounts) |
|||||||
|
March 31, 2024 |
|
December 31, 2023 |
||||
ASSETS |
|
|
|
||||
Current Assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
1,446 |
|
|
$ |
969 |
|
Accounts receivable, net |
|
125,459 |
|
|
|
138,343 |
|
Fair value of commodity derivatives |
|
89,535 |
|
|
|
116,549 |
|
Other current assets |
|
5,652 |
|
|
|
5,590 |
|
Total Current Assets |
|
222,092 |
|
|
|
261,451 |
|
Property and Equipment: |
|
|
|
||||
Property and equipment, full cost method, including |
|
3,709,469 |
|
|
|
3,597,160 |
|
Less – Accumulated depreciation, depletion, amortization & impairment |
|
(1,315,364 |
) |
|
|
(1,223,241 |
) |
Property and Equipment, Net |
|
2,394,105 |
|
|
|
2,373,919 |
|
Right of use assets |
|
20,658 |
|
|
|
12,888 |
|
Fair value of long-term commodity derivatives |
|
29,432 |
|
|
|
55,114 |
|
Other long-term assets |
|
28,876 |
|
|
|
31,090 |
|
Total Assets |
$ |
2,695,163 |
|
|
$ |
2,734,462 |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
||||
Current Liabilities: |
|
|
|
||||
Accounts payable and accrued liabilities |
$ |
143,684 |
|
|
$ |
98,816 |
|
Deferred acquisition liability |
|
50,000 |
|
|
|
50,000 |
|
Fair value of commodity derivatives |
|
26,333 |
|
|
|
5,509 |
|
Accrued capital costs |
|
42,114 |
|
|
|
31,900 |
|
Current portion of long-term debt |
|
37,500 |
|
|
|
28,125 |
|
Accrued interest |
|
8,325 |
|
|
|
9,668 |
|
Current lease liability |
|
7,765 |
|
|
|
4,001 |
|
Undistributed oil and gas revenues |
|
37,754 |
|
|
|
20,425 |
|
Total Current Liabilities |
|
353,475 |
|
|
|
248,444 |
|
Long-term debt, net of current portion |
|
1,039,469 |
|
|
|
1,173,766 |
|
Non-current lease liability |
|
12,955 |
|
|
|
8,899 |
|
Deferred tax liabilities |
|
94,077 |
|
|
|
99,227 |
|
Asset retirement obligations |
|
11,913 |
|
|
|
11,584 |
|
Fair value of long-term commodity derivatives |
|
8,110 |
|
|
|
2,504 |
|
Other long-term liabilities |
|
— |
|
|
|
710 |
|
Commitments and Contingencies |
|
|
|
||||
Stockholders' Equity: |
|
|
|
||||
Preferred stock, |
|
— |
|
|
|
— |
|
Common stock, |
|
260 |
|
|
|
259 |
|
Additional paid-in capital |
|
681,099 |
|
|
|
679,202 |
|
Treasury stock, held at cost, 503,295 and 485,346 shares, respectively |
|
(11,151 |
) |
|
|
(10,617 |
) |
Retained earnings |
|
504,956 |
|
|
|
520,484 |
|
Total Stockholders’ Equity |
|
1,175,164 |
|
|
|
1,189,328 |
|
Total Liabilities and Stockholders’ Equity |
$ |
2,695,163 |
|
|
$ |
2,734,462 |
|
Condensed Consolidated Statements of Operations (Unaudited)
SilverBow Resources, Inc. and Subsidiary (in thousands, except per-share amounts) |
|||||||
|
Three Months Ended
|
|
Three Months Ended
|
||||
Revenues |
$ |
256,680 |
|
|
$ |
139,954 |
|
|
|
|
|
||||
Operating Expenses: |
|
|
|
||||
General and administrative, net |
|
8,791 |
|
|
|
7,664 |
|
Depreciation, depletion, and amortization |
|
92,103 |
|
|
|
43,998 |
|
Accretion of asset retirement obligations |
|
316 |
|
|
|
224 |
|
Lease operating expenses |
|
31,825 |
|
|
|
20,560 |
|
Workovers |
|
610 |
|
|
|
779 |
|
Transportation and gas processing |
|
35,199 |
|
|
|
11,520 |
|
Severance and other taxes |
|
16,212 |
|
|
|
9,385 |
|
Total Operating Expenses |
|
185,056 |
|
|
|
94,130 |
|
|
|
|
|
||||
Operating Income |
|
71,624 |
|
|
|
45,824 |
|
|
|
|
|
||||
Non-Operating Income (Expense) |
|
|
|
||||
Gain (loss) on commodity derivatives, net |
|
(56,078 |
) |
|
|
92,249 |
|
Interest expense, net |
|
(36,017 |
) |
|
|
(16,745 |
) |
Other income (expense), net |
|
156 |
|
|
|
(24 |
) |
|
|
|
|
||||
Income (Loss) Before Income Taxes |
|
(20,315 |
) |
|
|
121,304 |
|
|
|
|
|
||||
Provision (Benefit) for Income Taxes |
|
(4,787 |
) |
|
|
26,812 |
|
|
|
|
|
||||
Net Income (Loss) |
$ |
(15,528 |
) |
|
$ |
94,492 |
|
|
|
|
|
||||
Per Share Amounts: |
|
|
|
||||
|
|
|
|
||||
Basic Earnings (Loss) Per Share |
$ |
(0.61 |
) |
|
$ |
4.21 |
|
|
|
|
|
||||
Diluted Earnings (Loss) Per Share |
$ |
(0.61 |
) |
|
$ |
4.17 |
|
|
|
|
|
||||
Weighted-Average Shares Outstanding - Basic |
|
25,445 |
|
|
|
22,440 |
|
|
|
|
|
||||
Weighted-Average Shares Outstanding - Diluted |
|
25,445 |
|
|
|
22,634 |
|
Condensed Consolidated Statements of Cash Flows (Unaudited)
SilverBow Resources, Inc. and Subsidiary (in thousands) |
|||||||
|
Three Months Ended
|
|
Three Months Ended
|
||||
Cash Flows from Operating Activities: |
|
|
|
||||
Net income (loss) |
$ |
(15,528 |
) |
|
$ |
94,492 |
|
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities |
|
|
|
||||
Depreciation, depletion, and amortization |
|
92,103 |
|
|
|
43,998 |
|
Accretion of asset retirement obligations |
|
316 |
|
|
|
224 |
|
Deferred income taxes |
|
(5,150 |
) |
|
|
26,612 |
|
Share-based compensation |
|
1,830 |
|
|
|
1,124 |
|
(Gain) Loss on derivatives, net |
|
56,078 |
|
|
|
(92,249 |
) |
Cash settlement (paid) received on derivatives |
|
38,371 |
|
|
|
18,699 |
|
Settlements of asset retirement obligations |
|
(2 |
) |
|
|
(3 |
) |
Other, net |
|
3,362 |
|
|
|
756 |
|
Change in operating assets and liabilities: |
|
|
|
||||
(Increase) decrease in accounts receivable and other current assets |
|
(5,374 |
) |
|
|
30,687 |
|
Increase (decrease) in accounts payable and accrued liabilities |
|
24,557 |
|
|
|
(24,504 |
) |
Increase (decrease) in income taxes payable |
|
465 |
|
|
|
300 |
|
Increase (decrease) in accrued interest |
|
(1,343 |
) |
|
|
(441 |
) |
Net Cash Provided by (Used in) Operating Activities |
|
189,685 |
|
|
|
99,695 |
|
Cash Flows from Investing Activities: |
|
|
|
||||
Additions to property and equipment |
|
(80,225 |
) |
|
|
(111,285 |
) |
Acquisition of oil and gas properties, net of purchase price adjustments |
|
11,821 |
|
|
|
(1,090 |
) |
Proceeds from the sale of property and equipment |
|
5,730 |
|
|
|
— |
|
Net Cash Provided by (Used in) Investing Activities |
|
(62,674 |
) |
|
|
(112,375 |
) |
Cash Flows from Financing Activities: |
|
|
|
||||
Proceeds from bank borrowings |
|
128,000 |
|
|
|
121,000 |
|
Payments of bank borrowings |
|
(254,000 |
) |
|
|
(104,000 |
) |
Purchase of treasury shares |
|
(534 |
) |
|
|
(2,945 |
) |
Net Cash Provided by (Used in) Financing Activities |
|
(126,534 |
) |
|
|
14,055 |
|
|
|
|
|
||||
Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash |
|
477 |
|
|
|
1,375 |
|
Cash, Cash Equivalents and Restricted Cash at Beginning of Period |
|
8,729 |
|
|
|
792 |
|
Cash, Cash Equivalents and Restricted Cash at End of Period |
$ |
9,206 |
|
|
$ |
2,167 |
|
Supplemental Disclosures of Cash Flow Information: |
|
|
|
||||
Cash paid during period for interest |
$ |
34,072 |
|
|
$ |
16,434 |
|
Non-cash Investing and Financing Activities: |
|
|
|
||||
Changes in capital accounts payable and capital accruals |
$ |
29,194 |
|
|
$ |
(3,097 |
) |
See accompanying Notes to Condensed Consolidated Financial Statements. |
|
|
|
||||
Definition of Non-GAAP Measures as Calculated by the Company (Unaudited)
The following non-GAAP measures are presented in addition to financial statements as SilverBow believes these metrics and performance measures are widely used by the investment community, including investors, research analysts and others, to evaluate and useful in comparing upstream oil and gas companies in making investment decisions or recommendations. These measures, as presented, may have differing calculations among companies and investment professionals and may not be directly comparable to the same measures provided by others. A non-GAAP measure should not be considered in isolation or as a substitute for the related GAAP measure or any other measure of a company's financial or operating performance presented in accordance with GAAP. A reconciliation of each of these non-GAAP measures to the most directly comparable GAAP measure or measures is presented below. These measures may not be comparable to similarly titled measures of other companies.
Adjusted EBITDA: The Company presents Adjusted EBITDA attributable to common stockholders in addition to reported net income (loss) in accordance with GAAP. Adjusted EBITDA is calculated as net income (loss) plus (less) depreciation, depletion and amortization, accretion of asset retirement obligations, interest expense, net losses (gains) on commodity derivative contracts, amounts collected (paid) for commodity derivative contracts held to settlement, income tax expense (benefit); and share-based compensation expense. Adjusted EBITDA excludes certain items that SilverBow believes affect the comparability of operating results, including items that are generally non-recurring in nature or whose timing and/or amount cannot be reasonably estimated. Adjusted EBITDA is used by the Company's management and by external users of SilverBow's financial statements, such as investors, commercial banks and others, to assess the Company's operating performance as compared to that of other companies, without regard to financing methods, capital structure or historical cost basis. It is also used to assess SilverBow's ability to incur and service debt and fund capital expenditures. Adjusted EBITDA should not be considered an alternative to net income (loss), operating income (loss), cash flows provided by (used in) operating activities or any other measure of financial performance or liquidity presented in accordance with GAAP. Adjusted EBITDA is important as it is considered among the financial covenants under the Company's First Amended and Restated Senior Secured Revolving Credit Agreement with JPMorgan Chase Bank, National Association, as administrative agent, and certain lenders party thereto (as amended, the “Credit Agreement”), a material source of liquidity for SilverBow. Please reference the Company's 2023 Form 10-K for discussion of the Credit Agreement and its covenants.
Adjusted EBITDA for Leverage Ratio: In accordance with the Leverage Ratio calculation for SilverBow's Credit Facility, the Company makes certain adjustments to its calculation of Adjusted EBITDA. Adjusted EBITDA for Leverage Ratio is calculated as Adjusted EBITDA plus (less) pro forma EBITDA contributions related to closed acquisitions. The Company believes that Adjusted EBITDA for Leverage Ratio is useful to investors because it reflects the last twelve months EBITDA used by the administrative agent for SilverBow's Credit Facility in the calculation of its leverage ratio covenant.
Cash General and Administrative Expenses: Cash G&A expenses is a non-GAAP measure calculated as net general and administrative costs less share-based compensation. The Company believes that cash G&A is commonly used by management, analysts and investors as an indicator of cost management and operating efficiency on a comparable basis from period to period. In addition, SilverBow believes cash G&A expenses are used by analysts and others in valuation, comparison and investment recommendations of companies in the oil and gas industry to allow for analysis of G&A spend without regard to stock-based compensation which can vary substantially from company to company. Cash G&A expenses should not be considered as an alternative to, or more meaningful than, total G&A expenses. From time to time the Company provides forward-looking cash G&A estimates or targets; however, SilverBow is unable to provide a quantitative reconciliation of these forward-looking non-GAAP measures to the most directly comparable forward-looking GAAP measure because the items necessary to estimate such forward-looking GAAP measure are not accessible or estimable at this time without unreasonable efforts. The reconciling items in future periods could be significant.
Free Cash Flow: Free cash flow is calculated as Adjusted EBITDA (defined above) plus (less) cash interest expense and bank fees, capital expenditures and current income tax (expense) benefit. The Company believes that free cash flow is useful to investors and analysts because it assists in evaluating SilverBow's operating performance, and the valuation, comparison, rating and investment recommendations of companies within the oil and gas industry. SilverBow uses this information as one of the bases for comparing its operating performance with other companies within the oil and gas industry. Free cash flow should not be considered an alternative to net income (loss), operating income (loss), cash flows provided by (used in) operating activities or any other measure of financial performance or liquidity presented in accordance with GAAP. From time to time the Company provides forward-looking free cash flow estimates or targets; however, SilverBow is unable to provide a quantitative reconciliation of these forward-looking non-GAAP measures to the most directly comparable forward-looking GAAP measure because the items necessary to estimate such forward-looking GAAP measure are not accessible or estimable at this time without unreasonable efforts. The reconciling items in future periods could be significant.
Total Debt to Adjusted EBITDA (Leverage Ratio): Leverage Ratio is calculated as total debt, defined as long-term debt excluding unamortized discount and debt issuance costs, divided by Adjusted EBITDA for the most recent twelve-month period.
Calculation of Adjusted EBITDA and Free Cash Flow (Unaudited)
SilverBow Resources, Inc. and Subsidiary (in thousands, except share amounts)
The below tables provide the calculation of Adjusted EBITDA and Free Cash Flow for the following periods (in thousands). |
||||||
|
Three Months Ended
|
Three Months Ended
|
||||
Net Income (Loss) |
$ |
(15,528 |
) |
$ |
94,492 |
|
Plus: |
|
|
||||
Depreciation, depletion and amortization |
|
92,103 |
|
|
43,998 |
|
Accretion of asset retirement obligations |
|
316 |
|
|
224 |
|
Interest expense |
|
36,017 |
|
|
16,745 |
|
Loss (gain) on commodity derivatives, net |
|
56,078 |
|
|
(92,249 |
) |
Derivative cash settlements collected/(paid) (1) |
|
34,057 |
|
|
19,868 |
|
Income tax expense/(benefit) |
|
(4,787 |
) |
|
26,812 |
|
Share-based compensation expense |
|
1,829 |
|
|
1,124 |
|
Adjusted EBITDA |
$ |
200,085 |
|
$ |
111,014 |
|
Plus: |
|
|
||||
Cash interest expense and bank fees, net |
|
(34,073 |
) |
|
(16,434 |
) |
Capital expenditures(2) |
|
(109,491 |
) |
|
(108,033 |
) |
Current income tax (expense)/benefit |
|
(363 |
) |
|
(200 |
) |
Free Cash Flow |
$ |
56,158 |
|
$ |
(13,653 |
) |
(1) Amounts relate to settled contracts covering the production months during the period. |
||||||
(2) Excludes proceeds/(payments) related to the divestiture/(acquisition) of oil and gas properties and equipment, outside of regular way land and leasing costs.
|
||||||
|
Last Twelve Months
|
Last Twelve Months
|
||||
Net Income (Loss) |
$ |
187,698 |
|
$ |
499,183 |
|
Plus: |
|
|
||||
Depreciation, depletion and amortization |
|
267,220 |
|
|
156,826 |
|
Accretion of asset retirement obligations |
|
1,077 |
|
|
660 |
|
Interest expense |
|
99,391 |
|
|
52,136 |
|
Loss (gain) on commodity derivatives, net |
|
(92,982 |
) |
|
(158,607 |
) |
Derivative cash settlements collected/(paid) (1) |
|
104,584 |
|
|
(164,348 |
) |
Income tax expense/(benefit) |
|
52,013 |
|
|
39,166 |
|
Share-based compensation expense |
|
6,231 |
|
|
5,164 |
|
Adjusted EBITDA |
$ |
625,232 |
|
$ |
430,180 |
|
Plus: |
|
|
||||
Cash interest expense and bank fees, net |
|
(88,492 |
) |
|
(54,656 |
) |
Capital expenditures(2) |
|
(410,048 |
) |
|
(395,179 |
) |
Current income tax (expense)/benefit |
|
(690 |
) |
|
(25 |
) |
Free Cash Flow |
$ |
126,002 |
|
$ |
(19,680 |
) |
|
|
|
||||
Adjusted EBITDA |
$ |
625,232 |
|
$ |
430,180 |
|
Pro forma contribution from closed acquisitions |
|
189,033 |
|
|
119,109 |
|
Adjusted EBITDA for Leverage Ratio (3) |
$ |
814,265 |
|
$ |
549,289 |
|
(1) Amounts relate to settled contracts covering the production months during the period. |
||||||
(2) Excludes proceeds/(payments) related to the divestiture/(acquisition) of oil and gas properties and equipment, outside of regular way land and leasing costs. |
||||||
(3) Adjusted EBITDA for Leverage Ratio, which is calculated in accordance with SilverBow's Credit Facility, includes pro forma EBITDA contributions reflecting the results of acquired assets' operations for referenced time periods preceding the acquired assets' close date. Leverage Ratio is calculated as total debt, defined as Credit Facility borrowings plus Second Lien notes, divided by Adjusted EBITDA for Leverage Ratio for the most recently completed twelve-month period. The below table provides the calculation for Leverage Ratio for the following periods: |
||||||
|
March 31, 2024 |
March 31, 2023 |
||
Credit Facility Borrowings due 2026 |
$ |
596,000 |
$ |
559,000 |
Second Lien Notes due 2026 |
|
500,000 |
|
150,000 |
Total debt |
$ |
1,096,000 |
$ |
709,000 |
Adjusted EBITDA for Leverage Ratio |
|
814,265 |
|
549,289 |
Leverage Ratio |
1.35x |
1.29x |
||
Calculation of Adjusted Earnings Per Share (Unaudited) SilverBow Resources, Inc. and Subsidiary (in thousands, except share amounts)
The below tables provide the calculation of Adjusted Earnings Per Share for the following periods (all amounts except Adjusted Net Income Per Share in thousands). |
||||||
|
Three Months Ended
|
Three Months Ended
|
||||
Net Income / (Loss) |
$ |
(15,528 |
) |
$ |
94,492 |
|
Plus: |
|
|
||||
Unrealized Loss / (Gain) on Commodity Derivatives, net(1) |
|
90,135 |
|
|
(72,381 |
) |
Tax Impact of Adjustments |
|
(21,239 |
) |
|
15,998 |
|
Adjusted Net Income |
|
53,368 |
|
|
38,109 |
|
|
|
|
||||
Weighted average Shares Outstanding - Diluted (MM) |
|
25.5 |
|
|
22.6 |
|
Adjusted Net Income per Share (Adjusted EPS) |
$ |
2.09 |
|
$ |
1.69 |
|
|
|
|
||||
Income Tax Expense / (Benefit) |
|
(4,787 |
) |
|
26,812 |
|
Income (Loss) Before Income Taxes |
$ |
(20,315 |
) |
$ |
121,304 |
|
Effective Tax Rate |
|
24 |
% |
|
22 |
% |
|
Last Twelve Months
|
Last Twelve Months
|
||||
Net Income / (Loss) |
$ |
187,698 |
|
$ |
499,183 |
|
Plus: |
|
|
||||
Unrealized Loss / (Gain) on Commodity Derivatives, net(1) |
|
11,602 |
|
|
(322,955 |
) |
Tax Impact of Adjustments |
|
(2,517 |
) |
|
23,496 |
|
Adjusted Net Income |
|
196,783 |
|
|
199,724 |
|
|
|
|
||||
Weighted average Shares Outstanding - Diluted (MM) |
|
25.5 |
|
|
22.6 |
|
Adjusted Net Income per Share (Adjusted EPS) |
$ |
7.71 |
|
$ |
8.83 |
|
|
|
|
||||
Income Tax Expense / (Benefit) |
|
52,013 |
|
|
39,166 |
|
Income (Loss) Before Income Taxes |
$ |
239,711 |
|
$ |
538,349 |
|
Effective Tax Rate |
|
22 |
% |
|
7 |
% |
Production Volumes & Pricing (Unaudited) SilverBow Resources, Inc. and Subsidiary |
||||||
|
|
Three Months Ended
|
Three Months Ended
|
|||
Production volumes: |
|
|
|
|||
Oil (MBbl) |
|
|
2,233 |
|
|
1,023 |
Natural gas (MMcf) (1) |
|
|
27,093 |
|
|
17,974 |
Natural gas liquids (MBbl) |
|
|
1,565 |
|
|
539 |
Total (MBoe) |
|
|
8,313 |
|
|
4,558 |
|
|
|
|
|||
Oil, natural gas and natural gas liquids sales (in thousands): |
|
|
|
|||
Oil |
|
$ |
166,704 |
|
$ |
74,655 |
Natural gas |
|
|
53,123 |
|
|
52,922 |
Natural gas liquids |
|
|
36,218 |
|
|
12,377 |
Total |
|
$ |
256,045 |
|
$ |
139,954 |
|
|
|
|
|||
Average realized price before impact of cash-settled derivatives: |
|
|
|
|||
Oil (per Bbl) |
|
$ |
74.65 |
|
$ |
73.01 |
Natural gas (per Mcf) |
|
|
1.96 |
|
|
2.94 |
Natural gas liquids (per Bbl) |
|
|
23.15 |
|
|
22.95 |
Average per Boe |
|
$ |
30.80 |
|
$ |
30.71 |
|
|
|
|
|||
Price impact of cash-settled derivatives: |
|
|
|
|||
Oil (per Bbl) |
|
$ |
(0.70 |
) |
$ |
0.92 |
Natural gas (per Mcf) |
|
|
1.31 |
|
|
0.94 |
Natural gas liquids (per Bbl) |
|
|
0.16 |
|
|
3.61 |
Average per Boe |
|
$ |
4.10 |
|
$ |
4.36 |
|
|
|
|
|||
Average realized price including impact of cash-settled derivatives: |
|
|
|
|||
Oil (per Bbl) |
|
$ |
73.95 |
|
$ |
73.93 |
Natural gas (per Mcf) |
|
|
3.27 |
|
|
3.88 |
Natural gas liquids (per Bbl) |
|
|
23.31 |
|
|
26.56 |
Average per Boe |
|
$ |
34.90 |
|
$ |
35.07 |
|
|
|
|
|||
(1) Natural gas is converted at the rate of six Mcfe to one barrel. Mcf refers to one thousand cubic feet, and MMcf refers to one million cubic feet. Bbl refers to one barrel of oil, and MBbl refers to one thousand barrels. |
||||||
Second Quarter 2024 & Full Year 2024 Guidance
|
|
Guidance |
|||
|
|
2Q 2024 |
|
FY 2024 |
|
Production Volumes: |
|
|
|
|
|
|
Oil (MBbls/d) |
|
23.5 - 25.0 |
|
24.5 - 26.5 |
|
Natural Gas (MMcf/d) |
|
290 - 305 |
|
285 - 305 |
|
NGLs (MBbls/d) |
|
19.0 - 19.6 |
|
18.0 - 20.0 |
Total Reported Production (MBoe/d) |
|
90.8 - 95.4 |
|
90.0 - 97.3 |
|
|
% Oil/Liquids |
|
|
|
|
|
|
|
|
|
|
Product Pricing: |
|
|
|
|
|
|
Crude Oil NYMEX Differential ($/Bbl) |
|
( |
|
N/A |
|
Natural Gas NYMEX Differential ($/Mcf) |
|
( |
|
N/A |
|
Natural Gas Liquids (% of WTI) |
|
|
|
N/A |
|
|
|
|
|
|
Operating Costs & Expenses: |
|
|
|
|
|
|
Lease Operating Expenses ($/Boe) |
|
|
|
|
|
Transportation & Processing ($/Boe) |
|
|
|
|
|
Production Taxes (% of Revenue) |
|
|
|
|
|
Cash G&A, net ($MM) |
|
|
|
|
A forward-looking estimate of net G&A expenses is not provided with the forward-looking estimate of cash G&A (a non-GAAP measure) because the items necessary to estimate net G&A expenses are not accessible or estimable at this time without unreasonable efforts. Such items could have a significant impact on net G&A expenses. |
|||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20240501347474/en/
Jeff Magids
Vice President of Finance & Investor Relations
(281) 874-2700, (888) 991-SBOW
Source: SilverBow Resources, Inc.
FAQ
What are SilverBow Resources' first quarter 2024 financial results?
How much did SilverBow Resources reduce total debt by since the South Texas acquisition?
What is SilverBow Resources' leverage ratio as of the first quarter of 2024?
What is the outlook for SilverBow Resources' full year 2024 production and free cash flow?
Where can I find more information about SilverBow Resources' corporate presentation?
