SilverBow Resources’ board of directors sent out a scathing letter to its shareholders on March 28 to “set the record straight on false claims made by Kimmeridge.” (Source: Shutterstock, SilverBow Resources)
In latest developments to the SilverBow saga, SilverBow Resources’ board of directors sent out a scathing letter to its shareholders on March 28 to “set the record straight on false claims made by Kimmeridge.”
The letter addresses Kimmeridge Energy Management’s latest bid for a SilverBow takeover and urges shareholders to vote against Kimmeridge’s proposals in the company’s upcoming 2024 annual meeting of shareholders. The E&P investment firm had proposed a merger in early March of its south Texas gas assets, Kimmeridge Texas Gas (KTG), with SilverBow in exchange for 32.4 million SilverBow shares at $34 per share.
Other SilverBow shareholders have expressed support for the Kimmeridge offer.
Kimmeridge had also asked to nominate three seats and to remove Leland T. Jourdan from SilverBow’s board, who was appointed on March 27 following Christoph O. Majeske’s resignation after the shareholder Strategic Value Partners’ sell down.
The March 28 letter to SilverBow shareholders said Kimmeridge’s offer “substantially undervalues SilverBow” and that KTG’s assets are “overstated in a manner that would advantage Kimmeridge in a combination at the expense of our other shareholders.”
Kimmeridge has not made public the relevant information to independently evaluate KTG’s assets, SilverBow said. “SilverBow has been and continues to be open to exploring a transaction at an appropriate valuation.”
SilverBow’s letter also alleged that Kimmeridge has plans to take control of its board by 2025 through successive proxy fights to eventually force a merger between KTG and SilverBow.
“Kimmeridge is making these proposals to further its own agenda to ultimately gain control of the company, without a control premium paid to all shareholders,” SilverBow said.
Recommended Reading
NextDecade Plans 3 More Trains at Rio Grande LNG
2025-02-28 - Houston-based NextDecade continues to build the Rio Grande LNG Center in Brownsville, Texas, as its permits filed with the Federal Energy Regulatory Commission continue to go through the legal process.
Baker Hughes Wins LNG Technology Orders for Venture Global
2025-01-30 - Baker Hughes Co. also signed a multiyear services agreement to support the first two phases of Venture Global’s Plaquemines LNG project in Louisiana.
Canadian Government to Fund Portion of Cedar LNG’s $5.96B Development Cost
2025-03-24 - The Government of Canada has pledged to contribute up to $200 million to help the Haisla Nation and Pembina Pipeline Corp. develop the $5.96 billion Cedar LNG Project
Energy Transfer, MidOcean Agree to Jointly Develop Lake Charles LNG
2025-04-09 - Under a non-binding heads of agreement with Energy Transfer, MidOcean Energy would fund 30% of Lake Charles LNG's project costs and be entitled to 30% of production—contingent on a final investment decision, the companies said.
Expand CFO: ‘Durable’ LNG, Not AI, to Drive US NatGas Demand
2025-02-14 - About three-quarters of future U.S. gas demand growth will be fueled by LNG exports, while data centers’ needs will be more muted, according to Expand Energy CFO Mohit Singh.
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.