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1. Company Snapshot

1.a. Company Description

SilverBow Resources, Inc., an oil and gas company, acquires and develops assets in the Eagle Ford shale and Austin Chalk located in South Texas.As of December 31, 2021, it had proved reserves of 1,416 billion cubic feet of natural gas equivalent.The company was formerly known as Swift Energy Company and changed its name to SilverBow Resources, Inc.


in May 2017.SilverBow Resources, Inc.was founded in 1979 and is headquartered in Houston, Texas.

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1.b. Last Insights on SBOW

Negative drivers behind SilverBow Resources' recent developments include potential undervaluation in its proposed sale to Crescent Energy Company, with Kahn Swick & Foti, LLC investigating the adequacy of the price and process. The deal, valued at $2.1 billion, has received strong shareholder support, with 99% votes cast in favor. However, the acquisition premium may be lower than expected, as the shale industry shows signs of maturity and acquisition trends shift towards looser hedging requirements and more debt.

1.c. Company Highlights

2. Transcript Summary

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3. NewsRoom

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SilverBow's (SBOW) Acquisition Gains Strong Shareholder Support

Jul -30

Source: zacks.com

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Crescent Energy Closes Transformative Acquisition of SilverBow Resources

Jul -30

Source: https://www.businesswire.com

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SHAREHOLDER ALERT: The M&A Class Action Firm Investigates Merger of Primo Water Corporation – PRMW

Jul -12

Source: globenewswire.com

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STOCKHOLDER INVESTIGATION: The M&A Class Action Firm Investigates Merger of Envestnet, Inc. - ENV

Jul -11

Source: prnewswire.com

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SILVERBOW RESOURCES INVESTOR ALERT by the Former Attorney General of Louisiana: Kahn Swick & Foti, LLC Investigates Adequacy of Price and Process in Proposed Sale of SilverBow Resources, Inc. - SBOW

Jul -02

Source: businesswire.com

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URGENT: The M&A Class Action Firm Investigates Merger and Looming Vote on July 15, 2024, of HashiCorp, Inc. - HCP

Jul -02

Source: prnewswire.com

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Crescent Energy Among The 'Very Best' E&P Companies, Says Analyst: SilverBow Deal Offers 'Clear Synergies'

Jun -27

Source: benzinga.com

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Acquisition Premiums Return To The Oil Patch

Jun -19

Source: forbes.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (14.19%)

6. Segments

Oil

Expected Growth: 14.0%

SilverBow Resources' 14.0% growth in oil production is driven by increased drilling activities in the Eagle Ford Shale, improved well completion techniques, and enhanced oil recovery methods. Additionally, the company's strategic acquisitions and focus on operational efficiency have contributed to the growth.

Natural Gas

Expected Growth: 15.0%

SilverBow Resources, Inc.'s 15.0% growth in Natural Gas is driven by increasing demand from power generation and industrial sectors, coupled with strategic acquisitions and development of existing assets. Additionally, improved operational efficiencies and cost savings initiatives have contributed to the growth.

Natural Gas Liquids

Expected Growth: 13.0%

SilverBow Resources, Inc.'s 13.0% growth in Natural Gas Liquids is driven by increased drilling and completion activities in the Eagle Ford Shale, improved well productivity, and higher commodity prices. Additionally, the company's strategic acquisitions and divestitures have optimized its asset portfolio, leading to increased production and revenue growth.

7. Detailed Products

Natural Gas

SilverBow Resources, Inc. is a leading independent oil and gas company that explores, develops, and produces natural gas in the Eagle Ford Shale and Austin Chalk areas of South Texas.

Crude Oil

SilverBow Resources, Inc. also produces crude oil, a key component in the production of various petroleum products such as gasoline, diesel fuel, and jet fuel.

Natural Gas Liquids (NGLs)

SilverBow Resources, Inc. produces NGLs, which are a group of hydrocarbons that are extracted from natural gas and used as a feedstock for petrochemicals and as a fuel.

8. SilverBow Resources, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

SilverBow Resources, Inc. operates in the oil and gas industry, which has a moderate threat of substitutes. While there are alternative energy sources, the demand for oil and gas is still high, and the company's products are widely used.

Bargaining Power Of Customers

SilverBow Resources, Inc. has a diverse customer base, which reduces the bargaining power of individual customers. Additionally, the company's products are essential to its customers' operations, giving it an upper hand in negotiations.

Bargaining Power Of Suppliers

SilverBow Resources, Inc. relies on a few key suppliers for its operations, which gives them some bargaining power. However, the company's size and scale of operations also give it some negotiating power.

Threat Of New Entrants

The oil and gas industry has high barriers to entry, including significant capital requirements and regulatory hurdles. This makes it difficult for new entrants to join the market, reducing the threat of new competition.

Intensity Of Rivalry

The oil and gas industry is highly competitive, with many established players competing for market share. SilverBow Resources, Inc. faces intense competition from other companies in the industry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 50.53%
Debt Cost 8.45%
Equity Weight 49.47%
Equity Cost 16.55%
WACC 12.46%
Leverage 102.14%

11. Quality Control: SilverBow Resources, Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Vitesse Energy

A-Score: 6.1/10

Value: 6.1

Growth: 7.1

Quality: 5.9

Yield: 10.0

Momentum: 3.5

Volatility: 4.0

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PHX Minerals

A-Score: 6.1/10

Value: 4.3

Growth: 2.0

Quality: 6.6

Yield: 7.0

Momentum: 9.0

Volatility: 7.7

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Evolution Petroleum

A-Score: 5.4/10

Value: 4.8

Growth: 4.8

Quality: 4.5

Yield: 10.0

Momentum: 2.5

Volatility: 6.0

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SilverBow Resources

A-Score: 4.9/10

Value: 8.8

Growth: 7.2

Quality: 6.5

Yield: 0.0

Momentum: 5.0

Volatility: 2.0

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Mexco Energy

A-Score: 4.2/10

Value: 7.1

Growth: 7.2

Quality: 7.5

Yield: 1.0

Momentum: 1.0

Volatility: 1.3

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Barnwell Industries

A-Score: 3.9/10

Value: 8.6

Growth: 4.2

Quality: 3.0

Yield: 0.0

Momentum: 5.5

Volatility: 2.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

36.82$

Current Price

36.82$

Potential

-0.00%

Expected Cash-Flows