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