Chief Executive Officer & Director, Silverbow Resources
Search every verified Sean Woolverton interview, podcast appearance, and on-the-record quote — each transcript cross-checked by AI and human review to confirm speaker identity. Sean Woolverton, CEO of SilverBow Resources, presented at the EnerCom Denver 2023 conference on September 17, 2024, following the company's announcement of a $700 million acquisition of Chesapeake's remaining South Texas assets. Woolverton stated that the all-cash transaction would make SilverBow the largest pure public Eagle Ford operator, with over 90,000 barrels of oil equivalent per day in production and a 50% liquids, 50% gas production mix. He said the company was targeting an EBITDA run rate of $900 million over the next 12 months, with line of sight to $1 billion, and that the deal would increase acreage from 180,000 to 225,000 acres with over 1,000 drilling locations. Woolverton noted that the transaction was financed through a $350 million upsizing of a second lien facility and a draw on the company's revolving credit facility, which increased from $775 million to $1.2 billion. He said SilverBow expected free cash flow per share to increase 80% in 2024 and EBITDA margins to reach 78%, which he described as peer-leading. Woolverton added that the company planned to run three to four rigs post-close and that the deal was leverage neutral with a target of one times leverage by the end of 2024. He stated that despite SilverBow's stock being up 45% year-to-date)Skip, the company still traded at a discount relative to peers.
“Yesterday we announced that we're acquiring Chesapeake's remaining South Texas assets for a purchase price of 700 million dollars. Upon closing, SilverBow will become the largest pure public Eagle Ford operator, with over 90,000 Boe of production per day and a 50 liquids, 50 gas production mix.”
“We're targeting an EBITDA run rate of 900 million dollars over the next 12 months with line of sight to a billion dollars of EBITDA. This transaction will increase our acreage from 180,000 to 225,000 acres and provide over a thousand drilling locations, giving us a substantial runway for growth.”
“The transaction is an all-cash deal with no equity involved. Financing includes a $350 million upsizing of our second lien with EIG from $150 million to $500 million, and the remaining balance funded through a draw on our RBL, which is increasing from $775 million to $1.2 billion.”
“We expect our free cash flow per share to increase 80 percent in 2024. EBITDA margins are projected to increase to 78 percent post-transaction, which will be peer-leading. Additionally, our efficient G&A platform will become even more efficient with the increased scale.”
“Post-close, the deal will be leverage neutral with maybe a slight uptick at close, but by the end of the year, with substantial free cash flow, leverage will tick down, keeping us on track to hit our one times leverage target by the end of 2024.”
“Scale is critical in the energy space as it provides improved cost of capital, operational efficiencies, and is essential to attract investors, especially on the equity side. Our target EBITDA run rate over the next 12 months is pushing 900 million dollars, a six-fold increase from the end of 2020.”
“We are the only public company in Eagle Ford that spans the entire basin and plays in all commodity windows, allowing us to efficiently drill both 20 million a day gas wells and 1500 barrel a day oil wells. This flexibility lets us move capital around efficiently to benefit from our asset base.”
“We financed the acquisition as an all-cash transaction at a 2.3 times next 12-month evaluation. Chesapeake is bringing on 16 wells currently, so production is ramping, which will increase our EBITDA early on. We plan to have a drilling rig on the asset early next year, possibly two.”
“Despite being up 45 percent year-to-date on our stock price and one of the top performers in the space, SilverBow still trades at a meaningful discount relative to our peers. We believe this deal puts us on the map with many investors moving forward.”
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