SilverBow Resources Announces Closing of SandPoint Acquisition
May 11 2022 - 9:05AM
Business Wire
SilverBow Resources, Inc. (NYSE: SBOW) (“SilverBow” or “the
Company”) announced today that it has closed its previously
announced acquisition of certain assets from SandPoint Operating,
LLC, a subsidiary of SandPoint Resources, LLC, (collectively,
“SandPoint"). Purchase consideration due to the seller, subject to
customary closing adjustments, was comprised of approximately $31
million in cash and 1.3 million shares of SilverBow’s common stock.
The cash portion of the purchase was funded with cash on hand and
borrowings under the Company's revolving credit facility.
MANAGEMENT COMMENTS
Sean Woolverton, SilverBow’s Chief Executive Officer, commented,
“This is the fourth deal we have closed since August of last year
as we continue to execute on our strategic objectives. The
SandPoint assets add meaningful production, inventory and reserves
across a highly contiguous acreage position in La Salle and
McMullen counties. Looking ahead, we expect to close the
acquisition of the Sundance assets in June or July, at which time
we will provide updated guidance. We expect an uplift to our
borrowing base in conjunction with the closing of Sundance assets,
which positions SilverBow with enhanced liquidity and multiple
avenues of continued growth through the drill-bit and accretive
acquisitions.”
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.
(Additional Information and Where to Find
It)
This communication does not constitute an offer to buy, or
solicitation of an offer to sell, any securities of SilverBow. This
communication relates to a proposed transaction involving SilverBow
and Sundance that is the subject of a proxy statement filed with
the U.S. Securities and Exchange Commission (the “SEC”) that
provides full details of the proposed transaction and the attendant
benefits and risk. This communication is not a substitute for the
proxy statement or any other document that SilverBow may file with
the SEC or send to its shareholders in connection with the proposed
transaction. INVESTORS AND SHAREHOLDERS ARE URGED TO READ THE PROXY
STATEMENT AND ANY OTHER RELEVANT DOCUMENTS, BECAUSE THEY CONTAIN
IMPORTANT INFORMATION ABOUT SILVERBOW AND THE PROPOSED TRANSACTION.
Investors and shareholders will be able to obtain these materials
and other documents filed with the SEC free of charge at the SEC’s
website, www.sec.gov. In addition, copies of the proxy statement
and other relevant documents may be obtained free of charge by
accessing SilverBow’s website at www.sbow.com by clicking on the
“Investors” link, or upon written request to SilverBow, 920
Memorial City Way, Suite 850, Houston, Texas 77024, Attention:
Investor Relations. Shareholders may also read and copy any
reports, statements and other information filed by SilverBow with
the SEC, at the SEC at 1-800-SEC-0330 or on the SEC’s website.
(Participants in the Solicitation)
SilverBow and certain of its directors, executive officers and
other members of management and employees may be deemed to be
participants in the solicitation of proxies from shareholders in
respect of the transaction under the rules of the SEC. Information
regarding SilverBow’s directors and executive officers is available
in its definitive proxy statement filed with the SEC on March 30,
2022 in connection with its 2022 annual meeting of shareholders.
Other information regarding the participants in the proxy
solicitation and a description of their direct and indirect
interests, by security holdings or otherwise, are contained in
SilverBow’s proxy statement and other relevant materials filed with
the SEC. Investors should read the proxy statement and other
relevant documents carefully before making any voting or investment
decisions.
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version on businesswire.com: https://www.businesswire.com/news/home/20220510006142/en/
Jeff Magids Director of Finance & Investor Relations (281)
874-2700, (888) 991-SBOW
SilverBow Resources (NYSE:SBOW)
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