Crescent Energy To Acquire SilverBow Resources In $2.1B Deal
Portfolio Pulse from Shivani Kumaresan
Crescent Energy Co (NYSE:CRGY) is set to acquire SilverBow Resources Inc (NYSE:SBOW) for $2.1 billion. SilverBow shareholders will receive 3.125 shares of Crescent Class A stock per SilverBow share, with an option for cash at $38 per share, capped at $400 million. The deal, which includes adding two SilverBow directors to Crescent's board, expands Crescent's operations in the Eagle Ford shale basin. The transaction is expected to close by the end of Q3 2024.
May 16, 2024 | 3:45 pm
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POSITIVE IMPACT
Crescent Energy's acquisition of SilverBow Resources for $2.1 billion is expected to be immediately accretive to key per share metrics and will significantly expand its operations in the Eagle Ford shale basin.
The acquisition is expected to be immediately accretive to Crescent's key per share metrics and significantly expands its operations, which is positive for the stock.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100
POSITIVE IMPACT
KKR, which manages Crescent Energy, will see its portfolio company expand significantly in the Eagle Ford shale basin through the acquisition of SilverBow Resources.
KKR's involvement in managing Crescent Energy means the acquisition will positively impact its portfolio, enhancing its position in the energy sector.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 50
POSITIVE IMPACT
SilverBow Resources shareholders will receive a premium of 18% over the last closing price, with options for stock or cash. The acquisition by Crescent Energy is expected to close by the end of Q3 2024.
The acquisition offers an 18% premium to SilverBow's shareholders, which is likely to be viewed positively by the market.
CONFIDENCE 90
IMPORTANCE 85
RELEVANCE 100
NEUTRAL IMPACT
Wells Fargo & Co is acting as a financial advisor for Crescent Energy in its $2.1 billion acquisition of SilverBow Resources.
While Wells Fargo's role as a financial advisor is important, it is less likely to have a significant short-term impact on its stock price.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 30