Crescent Energy acquires SilverBow Resources for $2.1 billion, forming leading Eagle Ford operator

(WO) — Crescent Energy Company and SilverBow Resources Inc. have entered into a definitive agreement pursuant to which Crescent will acquire SilverBow in a transaction valued at $2.1 billion.

“The combination with SilverBow, which is expected to be immediately accretive to all key per share metrics, solidifies Crescent as a leading operator in the Eagle Ford and strengthens the company’s growth platform with increased scale,” Crescent CEO David Rockecharlie said. “The SilverBow team has built a complementary and high-quality position in the Eagle Ford, and we believe the combination offers a unique value proposition in our evolving sector.”

The transaction will create a scaled company with a balanced portfolio of high-quality and long-life assets, an attractive, returns-driven financial framework and strong balance sheet, led by a management team and Board with significant operating and investing expertise that is well-positioned to drive long-term growth and value creation.

In this deal, SilverBow shareholders will receive 3.125 shares of Crescent Class A common stock for each share of SilverBow common stock. Alternatively, they have the option to opt for cash at a rate of $38 per share, with a maximum cash consideration of $400 million.

The transaction brings several benefits:

• It creates the second largest operator in the Eagle Ford, blending a wide portfolio with approximately 250 Mboe/d of low-decline, long-life production.
• It focuses on generating free cash flow and disciplined capital allocation.
• It anticipates significant cost savings and efficiencies, estimating annual synergies of $65 to $100 million.
• It positions the combined entity as a leading mid-cap E&P with the capacity for sustainable value creation.

“This is a compelling transaction for shareholders of both companies, creating a premier growth through acquisition platform,” John Goff, Crescent’s chairman of the board, said. “As Chairman and a major long-term shareholder, it has been exciting to watch this business execute on the strategy management laid out from the very beginning. This combination further positions Crescent as a leading growth business, and we look forward to welcoming the SilverBow team as we continue to build this company.”

Similarly, SilverBow CEO Sean Woolverton hailed the deal as an exciting chapter for SilverBow, offering shareholders an attractive premium and the potential for significant value creation.

The agreement has garnered unanimous approval from both companies' boards of directors and is expected to close by the end of the third quarter of this year, subject to customary closing conditions and regulatory approvals. Upon closure, Crescent's board of directors will expand, with two directors designated by SilverBow joining. John Goff will continue as Non-Executive Chairman, and David Rockecharlie as CEO. Crescent will maintain its headquarters in Houston.