SilverBow Resources Announces Extension of Revolving Credit Facility and Increased Borrowing Base
June 23 2022 - 8:30AM
Business Wire
SilverBow Resources, Inc. (NYSE: SBOW) (“SilverBow” or “the
Company”) today announced it has received bank approval to amend
its senior secured revolving credit facility (“Credit Facility”) to
extend the maturity of the Credit Facility to October 2026,
increase the borrowing base from $525 million to $775 million, and
reduce the interest rate margin for amounts outstanding, amongst
other things, in connection with SilverBow’s two recent strategic
acquisitions including the oil and gas assets of SandPoint
Operating, LLC, a subsidiary of SandPoint Resources, LLC in May
2022 (collectively, "SandPoint") and Sundance, as defined below.
The amended Credit Facility and borrowing base increase will go
into effect with the closing the Company’s previously announced
acquisition of substantially all of the oil and gas assets from
Sundance Energy, Inc. and certain affiliated entities,
(collectively, “Sundance").
MANAGEMENT COMMENTS
Sean Woolverton, SilverBow’s Chief Executive Officer, commented,
“Today’s announcement is a testament to the quality and breadth of
our asset base. SilverBow’s legacy assets coupled with the
acquisitions we have closed over the past year and expect to close
soon have transformed the Company into a premier South Texas
operator with increasing scale. I would like to thank our bank
syndicate for their support. Their confidence in SilverBow is
displayed with the step up of approximately 50% in our borrowing
base as well as the extension of the tenor of our Credit Facility.
With a meaningful free cash flow profile, substantial liquidity,
and a deep inventory of drilling locations, SilverBow is well
positioned to effectuate our growth strategy through both 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 including
the closing of the Sundance acquisition. 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/20220623005349/en/
Jeff Magids Director of Finance & Investor Relation (281)
874-2700, (888) 991-SBOW
SilverBow Resources (NYSE:SBOW)
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