SilverBow Resources Announces Increased Borrowing Base
April 13 2022 - 9:00AM
Business Wire
SilverBow Resources, Inc. (NYSE: SBOW) (“SilverBow” or “the
Company”) today announced it has entered into an amendment to its
senior secured revolving credit facility (“Credit Facility”) under
which the borrowing base has been increased from $460 million to
$525 million in connection with its regularly scheduled semi-annual
redetermination. The upsized borrowing base and strong free cash
flow generation in the first quarter of 2022 further strengthens
SilverBow’s liquidity.
MANAGEMENT COMMENTS
Sean Woolverton, SilverBow’s Chief Executive Officer, commented,
“We are pleased with the increase to our borrowing base and the
enhanced liquidity it provides. We appreciate the continued support
of our existing lenders and are excited to welcome the new lenders
to our expanding bank syndicate. This increase in our borrowing
base follows a period of continued development and acquisition
activity, which led to growth in proved reserves, and, in
conjunction with rising commodity prices, to overall reserve
value.”
Mr. Woolverton commented further, “The enhanced liquidity
broadens SilverBow’s opportunity set, as we continue to evaluate
strategic M&A while further developing our Eagle Ford and
Austin Chalk assets. We believe that our continued operational
focus and track record of acquisition activity within the basin is
building significant shareholder value. We are committed to
maintaining financial discipline and working with our lending group
to further our strategy of consolidating assets to increase scale
and efficiency.”
LIQUIDITY UPDATE
As of March 31, 2022, the Company had approximately $2 million
in cash and $200 million of outstanding borrowings under its Credit
Facility. Adjusted for the increase to the borrowing base to $525
million, the Company had $325 million of undrawn capacity and
approximately $2 million in cash, resulting in approximately $327
million of liquidity.
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 and Austin Chalk
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.
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version on businesswire.com: https://www.businesswire.com/news/home/20220413005383/en/
Jeff Magids Director of Finance & Investor Relation (281)
874-2700, (888) 991-SBOW
SilverBow Resources (NYSE:SBOW)
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