OIL - Kimmeridge Releases Presentation on SilverBow's Track Record of Value Destructive M&A | Benzinga
SilverBow needs experienced, independent directors who are capable and open to assessing all value enhancing alternatives to create significant long-term shareholder value
Urges shareholders to vote "FOR" all three of Kimmeridge's highly qualified, independent nominees to SilverBow's staggered board on the GOLD proxy card
NEW YORK and DENVER, May 2, 2024 /PRNewswire/ -- Kimmeridge, an alternative asset manager focused on the energy sector and the largest shareholder of SilverBow Resources ("SilverBow" or the "Company") holding 12.9% of outstanding shares, today released an investor presentation detailing SilverBow's consistent track record of value destructive M&A.
SilverBow has pursued a failed M&A strategy that has put its balance sheet at risk – adding debt and minimum volume commitments that now represent over 96% of the Company's enterprise value – while consistently destroying shareholder value. As noted in the presentation:
- SilverBow's TSR has underperformed the XOP following all 8 of their acquisitions, notably:
- -45% since acquiring assets from Teal (October 2021)
- -32% since acquiring Sundance Energy and Sandpoint Resources (April 2022)
- -24% since announcing its self-proclaimed "transformational" acquisition of Chesapeake's South Texas asset (August 2023)
- Even after 8 acquisitions, SilverBow remains in the bottom 10% of the XOP in terms of market capitalization and trades at the lowest EV / EBITDA multiple in its peer set.1
- SilverBow claims free cash flow generation is central to its M&A criteria, yet its acquisitions have been a significant drag on free cash flow since the start of 2021.
- Despite SilverBow's claims to the contrary, minimal drilling ...