CRGY - Crescent Energy: The Offer To Acquire SilverBow Is An Absolute Steal

2024-05-20 10:09:01 ET

Summary

• Crescent Energy Company offers 3.125 shares to acquire SilverBow Resources.
• SilverBow's value has been affected by low natural gas prices due to an abundance of supply after a warm winter.
• Crescent Energy's balanced production of natural gas and oil makes the combined company more valuable.
• SilverBow did not operate the Chesapeake properties long enough to benefit from the acquisition.
• Undeveloped acreage essentially comes at little to no value.

Crescent Energy Company ( CRGY ) made an offer for SilverBow Resources, Inc. ( SBOW ).

The Offer

This will be a stock exchange offer with an option to take all cash up to a maximum amount of total cash available for the deal. Some of those activist shareholders are likely to take the cash. So that option was needed....

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