Houston-based Crescent Power has closed its acquisition of SilverBow Sources, Inc. forward of schedule.
The mixed firm is the second largest operator within the Eagle Ford, Crescent stated in a information launch. The SilverBow integration is underway with “roughly $35 million of the beforehand introduced $65 million to $100 million in annual synergies captured up to now by an improved value of capital leading to diminished curiosity expense,” it stated.
SilverBow shareholders elected to obtain in combination roughly $358 million in whole money consideration as a part of the transaction. Crescent issued roughly 52 million shares of Class A standard inventory to fund the non-cash portion of the consideration. As of closing, former SilverBow shareholders personal roughly 23 p.c of the mixed firm on a completely diluted foundation, in accordance with the discharge.
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“Right this moment is an thrilling day for Crescent. We’re properly positioned to create worth, and I’m grateful for the belief from our unique Crescent and new SilverBow shareholders, every of whom voted with an amazing majority to approve our merger and to take fairness consideration and take part within the go-forward firm,” stated Crescent CEO David Rockecharlie.
“By way of disciplined investing and operations, we’ve got delivered worthwhile progress, tripling the scale of our enterprise over the past 4 years. We now have created a premier progress by acquisition platform by executing on our money circulate and returns-oriented technique. Right this moment, we’re targeted on quickly integrating our new belongings and personnel and persevering with to ship on the numerous synergies we’ve recognized to strengthen returns. We’re extremely assured in our potential to execute and reveal Crescent’s worth proposition as a number one mid-cap firm,” Rockecharlie added.
Marc Rowland and Michael Duginski have been appointed to Crescent’s board, efficient as of closing of the acquisition. The additions broaden Crescent’s board to a complete of 11 administrators, of which 9 are thought-about impartial administrators.
Silverbow was concerned in a proxy struggle with energy-focused asset supervisor Kimmeridge earlier within the 12 months. Kimmeridge had urged the board of SilverBow Sources Inc. to merge with Kimmeridge Texas Gasoline (KTG) after a number of rejections. Nevertheless, the board stated that Kimmeridge “has failed to offer, or reveal a capability to consummate, a reputable and actionable proposal”.
In Could, Crescent introduced the acquisition of Silverbow in a transaction valued at $2.1 billion, saying that the transaction “will create a scaled firm with a balanced portfolio of high-quality and long-life belongings, a lovely, returns-driven monetary framework and powerful steadiness sheet, led by a administration workforce and board with important working and investing experience that’s well-positioned to drive long-term progress and worth creation”.
SilverBow CEO Sean Woolverton stated in an earlier assertion, “That is an thrilling new chapter for SilverBow and a compelling worth proposition for our shareholders. The transaction delivers a lovely premium to SilverBow shareholders, with a option to choose into the numerous upside, sustainable worth and significant synergies that we see on this mixture by receiving Crescent shares — or to obtain instant money liquidity. This transaction is in keeping with our dedication to pursuing any path that can maximize worth for shareholders and is the results of a evaluation of options performed with the help of our monetary and authorized advisors”.
“This mixture of two robust corporations positions the professional forma enterprise for continued success above and past what both firm might obtain by itself,” he added.
Crescent Power describes itself as a number one growth-through-acquisition firm primed for sustainable worth creation with a targeted portfolio of high-quality and long-life belongings, a lovely, returns-driven monetary framework and powerful steadiness sheet.
To contact the writer, electronic mail rocky.teodoro@rigzone.com
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