Crescent Energy Company has successfully completed its acquisition of SilverBow Resources, Inc. This significant transaction, valued at $2.1 billion, was finalized ahead of the projected timeline.
Integration Progress and Early Synergy Realization
The integration of SilverBow into Crescent Energy is well underway, with notable progress already achieved.
Approximately $35 million of the anticipated $65 million to $100 million in annual synergies have been realized to date. This early success is primarily due to an improved cost of capital, resulting in a reduction in interest expense.
Crescent Energy’s Strategic Position and Growth Potential
Crescent Energy has established itself as a leading growth-through-acquisition company, poised to generate sustainable value creation.
It boasts a focused portfolio of high-quality, long-life assets, along with an attractive, returns-driven financial framework and a robust balance sheet.
The company’s leadership team has a proven track record of executing on its strategy for over a decade.
The combined portfolio of assets from the merger strategically positions Crescent Energy to generate substantial free cash flow while maintaining balanced and attractive exposure to potential upside in commodity prices.
Leading Mid-Cap E&P Company with Scaled Portfolio
The newly merged entity is now the second-largest operator in the Eagle Ford shale play. This combination has resulted in a leading mid-cap exploration and production (E&P) company with a scaled and balanced portfolio of high-quality assets.
Additionally, the company is well-positioned for further growth through accretive, returns-driven mergers and acquisitions (M&A).
CEO’s Remarks on Merger and Future Outlook
David Rockecharlie, CEO of Crescent Energy, expressed his enthusiasm about the merger: “Today is an exciting day for Crescent.
We are well positioned to create value, and I am grateful for the trust from our original Crescent and new SilverBow shareholders, each of whom voted with an overwhelming majority to approve our merger and to take equity consideration and participate in the go-forward company.”
Rockecharlie emphasized the company’s commitment to disciplined investing and operations, which has led to profitable growth and a tripling of the business over the last four years.
He highlighted the company’s premier growth-through-acquisition platform and reiterated their focus on integrating assets and personnel while continuing to deliver on significant synergies. He expressed high confidence in Crescent Energy’s ability to execute and demonstrate its value proposition as a leading mid-cap company.