Another Merger in the Shale Sector: American Crescent Buys SilverBow

Crescent Energy has agreed to buy rival US oil and gas producer SilverBow Resources for $2.1 billion.
Each SilverBow share will be exchanged for 3,125 Crescent Class A shares valued at $38.28 at the May 15 closing price. According to the statement, SilverBow holders will have the option to receive all or part of the proceeds in cash at a price of $38 per share, up to a maximum of $400 million. The share swap price is approximately 18% higher than SilverBow’s closing price on May 15.
The deal will give Crescent, which is managed by KKR & Co, expanded production operations in the Eagle Ford Basin.
SilverBow shares fell 0.6% to $32.35 on May 15, giving the Houston-based company a market value of about $826 million. Including debt, SilverBow’s enterprise value is about $1.9 billion. Crescent shares fell 0.8 %, up to $12.25 with a market value of about $2.2 billion.
After purchasing SilverBow, Crescent will become one of the largest operators in the Eagle Ford Basin, competing with companies such as EOG Resources and ConocoPhillips, according to Bloomberg.