Crescent Energy closes transformative acquisition of SilverBow Resources
Crescent Energy Company has successfully closed its acquisition of SilverBow Resources, Inc. ahead of schedule. Crescent plans to provide pro forma second half 2024 guidance reflecting the acquisition and will issue its second quarter 2024 financial and operating results after market close on August 5, 2024. A conference call is planned for August 6, 2024.
The integration of SilverBow is well underway, with Crescent capturing approximately $35 million of the previously announced $65 – $100 million in annual synergies. This has been achieved through an improved cost of capital, resulting in reduced interest expenses.
Crescent Energy is a leading growth-through-acquisition company focused on sustainable value creation. The company boasts a portfolio of high-quality, long-life assets, an attractive, returns-driven financial framework, and a strong balance sheet. Crescent’s management team has been executing this strategy for over a decade. The combined portfolio of assets positions the company for substantial free cash flow generation, with balanced and attractive exposure to commodity price upside.
Crescent Energy presents a compelling value proposition:
- Second Largest Operator in the Eagle Ford: The combined company solidifies its position as a major player in this region.
- Leading Mid-Cap E&P: Crescent becomes a leading mid-cap exploration and production company with a balanced portfolio of high-quality assets.
- Substantial Free Cash Flow Generation: The company is committed to disciplined capital allocation to drive significant cash flow.
- Growth Potential: Positioned for further growth through accretive, returns-driven mergers and acquisitions.
Crescent CEO David Rockecharlie expressed excitement about the acquisition’s completion: “Today is an exciting day for Crescent. We are well positioned to create value, and I am grateful for the trust from our original Crescent and new SilverBow shareholders, each of whom voted with an overwhelming majority to approve our merger and to take equity consideration and participate in the go-forward company.”
Rockecharlie emphasised the company’s strategic focus: “Through disciplined investing and operations, we have delivered profitable growth, tripling the size of our business over the last four years. We have created a premier growth-through-acquisition platform by executing on our cash flow and returns-oriented strategy. Today, we are focused on rapidly integrating our new assets and personnel and continuing to deliver on the significant synergies we’ve identified to strengthen returns. We are highly confident in our ability to execute and demonstrate Crescent’s value proposition as a leading mid-cap company.”
With the SilverBow acquisition, Crescent Energy is poised to enhance its market position and deliver substantial value to its shareholders. The company’s commitment to disciplined growth and strategic acquisitions ensures it remains a leading mid-cap exploration and production company with a robust portfolio and strong financial performance.
For more information visit www.crescentenergyco.com
31 July 2024
