Upon completion of the proposed transaction, Kimmeridge and its affiliates would hold a majority stake in the combined entity. Credit: C Morrison from Pixabay.

Kimmeridge, an energy sector-focused alternative asset manager, has proposed a strategic combination with SilverBow Resources, aiming to create a key Eagle Ford shale operator.

The offer, which includes a substantial equity investment, values US oil and gas producer SilverBow at close to $2.1bn, including debt.

Related Company Profiles

View all

Under the proposal, Kimmeridge would contribute its Kimmeridge Texas Gas assets, valued at $1.1bn, in exchange for 32.4 million SilverBow shares at $34 each.

Additionally, Kimmeridge plans to invest $500m of new equity at the same share price, receiving 14.7 million shares.

Upon completion of the proposed transaction, Kimmeridge and its affiliates would hold a majority stake in the combined entity, with approximately 50.3 million shares, including their existing 3.3 million share position in SilverBow.

See Also:

Kimmeridge has confirmed it has the necessary capital to finance the $500m equity investment, which would be utilised to reduce SilverBow’s long-term debt.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

In a press statement, Kimmeridge said: “Kimmeridge has received highly confident letters from Barclays, RBC Capital Markets and other lenders with respect to the debt consideration required to facilitate the transaction.”

Kimmeridge’s control of the combined company would constitute a supermajority, including the shares it currently owns, with the remainder held by public shareholders.

In a press statement, SilverBow said: “Consistent with its fiduciary duties and in consultation with its financial and legal advisors, the SilverBow Board of Directors will carefully review and consider the proposal to determine the course of action that it believes is in the best interest of the Company and all of its shareholders. SilverBow shareholders do not need to take any action at this time.”

…………………………….

PR

https://www.businesswire.com/news/home/20240313967317/en/SilverBow-Resources-Confirms-Receipt-of-Proposal-from-Kimmeridge

https://www.prnewswire.com/news-releases/kimmeridge-issues-open-letter-to-silverbow-shareholders-outlining-proposed-combination-with-kimmeridge-texas-gas-302087507.html

Add

https://www.reuters.com/business/energy/kimmeridge-makes-new-21-bln-offer-silverbow-sources-say-2024-03-13/

Image

https://pixabay.com/photos/oil-rig-sea-oil-gas-drill-2191711/