CRGY - SilverBow Resources Acquired By Crescent Energy Unlocking Value
2024-05-16 18:07:59 ET
Summary
- SilverBow Resources agrees to be acquired by Crescent Energy.
- Shareholders will receive 3.125 shares of common stock of Crescent Energy for each SilverBow stock.
- The merger combines two undervalued companies into a larger company with a balanced portfolio and better value potential.
- SilverBow Resources stock was likely held back by too much debt and the previous bankruptcy.
- The share exchange offering allows SilverBow Resources to benefit from any increase in value of the combined company.
SilverBow Resources, Inc. ( SBOW ) announced that the company has agreed to be acquired by Crescent Energy Company ( CRGY ). SilverBow has long struggled with a post-bankruptcy discount that is really not uncommon for companies that have exited bankruptcy. The acquisition from Chesapeake was at a fantastically good price. But the company ended up with too much debt, which gave the market another reason to keep the stock price low.
Nothing scares Mr. Market more than a post-bankruptcy stock taking on debt, no matter how good the reason is (and believe me, they had one heck of a good reason). The merger with Crescent Energy should resolve all of these issues and more....
SilverBow Resources Acquired By Crescent Energy, Unlocking Value