![SilverBow Gears Up for Proxy Fight with Kimmeridge](/sites/default/files/styles/hart_news_article_image_640/public/image/2024/04/silverbow-gears-proxy-fight-kimmeridge_0.jpg?itok=XHeU8TrP)
On April 9, SilverBow countered that the three candidates Kimmeridge is proposing each have ties to the firm. (Source: Shutterstock/ Kimmeridge/ SilverBow)
SilverBow Resources’ ongoing skirmish with shareholder Kimmeridge has resulted in a lengthy letter describing the Eagle Ford E&Ps successes and a warning that the investment firm is engaged in a “self-serving attempt to control SilverBow without paying fair value to shareholders.”
Both sides accused the other of misleading shareholders, with Kimmeridge Energy Management most recently saying in a letter that the best path forward is for SilverBow shareholders to elect three board members who are independent and not associated with Kimmeridge.
RELATED
Kimmeridge-SilverBow Public Feud Gets Ugly as Firm Suggests New Directors
On April 9, SilverBow countered that the three candidates Kimmeridge is proposing each have ties to the firm. In a letter to shareholders, SilverBow said that nominee Douglas Brooks served as director at California Resources Corp. during “Kimmeridge’s campaign at the company.”
Carrie Fox, another Kimmeridge nominee, “has a $3 million limited partnership interest in Kimmeridge Fund VI” and served as director at two companies with Ben Dell, Kimmeridge’s managing partner, SilverBow said. And Katherin Minyard was appointed to Ovintiv’s board as a Kimmeridge nominee, the company said.
SilverBow is promoting its own slate of independent directors: Gabriel L. Ellisor, Kathleen McAllister and Charles W. Wampler.
SilverBow said the Kimmeridge’s “proxy fight” is an attempt to gain control of the company and force a combination between SilverBow and Kimmeridge Texas Gas (KTG) “on terms that are unfavorable to SilverBow shareholders.”
Kimmeridge’s proposed combination between KTG and SilverBow would exchange for 32.4 million SilverBow shares at $34 per share. The offer includes an associated $500 million equity investment, Kimmeridge said.
Kimmeridge said a combination of the two companies would create a “preeminent, pure-play Eagle Ford Shale operator with an estimated enterprise value of approximately $3.6 billion.”
SilverBow’s market capitalization is about $870 million.
SilverBow is also proposing changes to the company’s governance at its May 21 annual meeting. The company would:
- Declassify the board and provide for the annual election of all directors;
- Adopt a majority voting standard in uncontested elections of directors; and
- Eliminate supermajority vote requirements for shareholders to amend certain provisions of the company’s certificate of incorporation.
Shareholders of record as of March 22 will be entitled to vote at the May 21 meeting.
Recommended Reading
Infinity Natural Resources’ IPO Nets Another $37MM
2025-02-07 - Underwriters of Infinity Natural Resources’ January IPO have fully exercised options to purchase additional Class A common stock at $20 per share.
Equinor Commences First Tranche of $5B Share Buyback
2025-02-07 - Equinor began the first tranche of a share repurchase of up to $5 billion.
Mach Prices Common Units, Closes Flycatcher Deal
2025-02-06 - Mach Natural Resources priced a public offering of common units following the close of $29.8 million of assets near its current holdings in the Ardmore Basin on Jan. 31.
Rising Phoenix Capital Launches $20MM Mineral Fund
2025-02-05 - Rising Phoenix Capital said the La Plata Peak Income Fund focuses on acquiring producing royalty interests that provide consistent cash flow without drilling risk.
Alliance Resource Partners Adds More Mineral Interests in 4Q
2025-02-05 - Alliance Resource Partners closed on $9.6 million in acquisitions in the fourth quarter, adding to a portfolio of nearly 70,000 net royalty acres that are majority centered in the Midland and Delaware basins.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.