Sean Woolverton on scale
From SilverBow Resources (SBOW) Company Presentation at EnerCom Denver 2023 · · Oil and Gas 360 - EnerCom
“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.”
On , Sean Woolverton, Chief Executive Officer & Director at SILVERBOW RESOURCES INC, spoke about scale during SilverBow Resources (SBOW) Company Presentation at EnerCom Denver 2023 on Oil and Gas 360 - EnerCom.
About Sean Woolverton
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.