Crescent Energy Co. expects its $2.1 billion acquisition of SilverBow Resources to close July 30, subject to final approvals.

Ahead of closing, the companies announced the pending deadline for SilverBow stockholders to elect the form of merger consideration they wish to receive in connection with the transaction.

The election deadline is set for 5 p.m. CT on July 24, according to a July 17 release.

Each share of SilverBow common stock outstanding immediately prior to closing is eligible to receive one of the following options as consideration:

  • 3.125 shares of Crescent Class A common stock;
  • $15.31 in cash without interest (and subject to any withholding taxes required by applicable law) and 1.866 shares of Crescent Class A common stock; or
  • $38.00 in cash without interest (and subject to any withholding taxes required by applicable law), subject to an aggregate cap of $400,000,000 on the total cash consideration payable for SilverBow common stock.

The combination of Crescent Energy and SilverBow Resources will yield one of the largest public operators and leaseholders in the Eagle Ford Shale.

SilverBow has around 220,000 net acres in the western Eagle Ford. The company’s production averaged 91,400 boe/d (46% oil/liquids) during the first quarter.

Crescent has approximately 231,000 net acres across its Eagle Ford portfolio. Net Eagle Ford volumes reached nearly 16.2 MMboe in 2023, or an average of 44,358 boe/d.

The deal with Crescent came after a lengthy spat between SilverBow and activist investor Kimmeridge, which sought to merge SilverBow with subsidiary Kimmeridge Texas Gas (KTG). Kimmeridge withdrew from its proxy battle after the transaction with Crescent was announced.

The combination was cleared by the U.S. Federal Trade Commission in early July. Crescent and SilverBow stockholders still need to sign off on the deal.

RELATED

Could Crescent, SilverBow Buy More in South Texas After $2.1B Deal?

Comments