SilverBow Resources evaluates Kimmeridge's merger proposal
Investing.com | Editor Emilio Ghigini
Published Mar 13, 2024 09:52AM ET
HOUSTON - SilverBow Resources, Inc. (NYSE: NYSE:SBOW), a Houston-based energy company, has confirmed receiving a proposal from Kimmeridge Energy Management for a potential merger involving Kimmeridge Texas Gas assets and a significant cash contribution. The proposed deal would see Kimmeridge contributing KTG's assets and $500 million in cash for shares in the combined entity, resulting in Kimmeridge holding a supermajority stake.
The SilverBow Board of Directors is set to review the proposal to determine its suitability for the company and its shareholders. SilverBow has been in discussions with Kimmeridge since August 2022, aiming to maximize shareholder value. The company's engagement and negotiation history with Kimmeridge was disclosed in a Form 8-K filed with the Securities and Exchange Commission on March 1, 2024.
SilverBow specializes in the exploration, development, and production of oil and gas in South Texas's Eagle Ford (NYSE:F) Shale and Austin Chalk. The company has over 30 years of operational history in the region, which it leverages for drilling inventory assembly and operational enhancements to maximize capital returns.
The company also announced that shareholders are not required to take any action at this time concerning the proposal. SilverBow intends to file a proxy statement with the SEC for its 2024 Annual Meeting, urging shareholders to read it carefully once available, as it will contain crucial information regarding the solicitation of proxies.
This news is based on a press release statement from SilverBow Resources, Inc. and does not constitute an endorsement of the proposal or suggest any future outcomes. The company's directors, certain executive officers, and employees may be deemed participants in the proxy solicitation for the upcoming Annual Meeting. SilverBow will provide the proxy statement and any other relevant documents filed with the SEC on its website for shareholder review.
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