WSJ : Crescent Energy to Acquire SilverBow in $2.1B Deal

WSJ : Crescent Energy to Acquire SilverBow in $2.1B Deal
The energy companies said the combination will create the second largest operator in the Eagle Ford Shale.

SilverBow Resources has agreed to be acquired by its Houston-based rival Crescent Energy in a deal valued at $2.1 billion.

Shares of SilverBow jumped 11% in premarket trading to $36. Crescent shares slid 1% to $12.11.

The energy companies said Thursday that combining will create the second largest operator in the Eagle Ford Shale.

Under the terms of the transaction, SilverBow shareholders are set to exchange one share for 3.125 shares of Crescent stock, with an option to receive all or a portion of the proceeds in cash valued at $38 a share. That option is subject to a possible proration based on a maximum cash consideration of $400 million.

The deal is structured so that Crescent shareholders will ultimately own about 69% to 79% of the combined company while SilverBow investors will own the remaining 21% to 31%, the companies said.

The tie-up has been unanimously approved by the boards of both companies. About 43% of Crescent shareholders are currently in support of the deal. Shareholders of each company and regulators still have to approve the transaction, which is expected to close by the end of the third quarter.

SilverBow has been working for months to fend off a proxy fight from shareholder Kimmeridge Energy Management, which has sought to combine the company with Kimmeridge Texas Gas.

Corrections & Amplifications

This article was corrected at 8:39 a.m. ET because it misstated that Kimmeridge Texas Gas was behind the proxy fight. SilverBow has been working for months to fend off a proxy fight from shareholder Kimmeridge Energy Management, which has sought to combine the company with Kimmeridge Texas Gas.

Dow Jones Newswires, 16 May 2024 8:38:59 AM

Correction to Crescent Energy Article
SilverBow has been working for months to fend off a proxy fight from shareholder Kimmeridge Energy Management, which has sought to combine the company with Kimmeridge Texas Gas. “Crescent Energy to Acquire SilverBow in $2.1 Bln Deal” at 8:09 a.m. ET misstated that Kimmeridge Texas Gas was behind the proxy fight.