SilverBow Resources Announces Acquisitions of Sundance Energy and SandPoint Resources
Summary
• Compelling industrial logic given highly contiguous acreage to SilverBow’s existing position; adds 39,000 net acres in Atascosa, La Salle, McMullen and Live Oak counties • 2022E Adjusted EBITDA of approximately $170 million2,3, implying an attractive 2.1x purchase price multiple. Expected to add significant free cash flow (“FCF”) in 2022 • Contiguous acreage in La Salle and McMullen counties, with ~27,000 net acres • May 2022E net production of 4,650 Boe/d (70% gas, 30% liquids) with two new wells expected to be coming online in the second quarter of 2022 • Increases 2022E FCF per share by approximately 50% compared to standalone SilverBow2,3 • Conservative leverage profile targeting total debt to Adjusted EBITDA less than 1.0x by YE22 • Double-digit annual production growth with less than 60% re-investment rate through 2024, expected to generate greater than $1.0 billion of FCF2,4 during the same time period • Deep inventory of more than 645 gross / 507 net high-return locations across the Company’s Eagle Ford and Austin Chalk focus areas • Pro forma PDP reserves of approximately 750 Bcfe and PDP PV-10 of $1.6 billion1,2 • Estimated annual synergies of approximately $15 million with further potential savings upon integration. The significant production and cash flow from existing wells, coupled with a conservative balance sheet and ample liquidity, positions SilverBow to self-fund high rate of return projects and simultaneously further our consolidation efforts. 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. SilverBow believes that re-investment rate is useful to investors because it reflects the magnitude of capital needed to be invested back into the Companys operations, relative to the total potential cash flows to which stakeholders could have received.