US oil company Crescent Energy has completed its $2.1bn acquisition of SilverBow Resources, becoming the second-largest operator in the Eagle Ford.
The cash and stock deal, which was announced in May this year, has been concluded ahead of schedule.
The acquisition enhances Crescent’s status as a leading mid-cap exploration and production company with a diverse, high-quality asset portfolio.
The merger is expected to yield substantial free cash flow and has been structured with a disciplined capital allocation framework, the company said.
Crescent noted that this move will facilitate further growth through accretive, returns-driven mergers and acquisitions.
The company has already realised approximately $35m in annual synergies, primarily through improved cost of capital and reduced interest expenses.
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By GlobalDataFollowing the integration, the combined entity’s production capacity is estimated to reach around 250,000boepd.
SilverBow shareholders have received approximately $358m in total cash consideration, with Crescent issuing around 52 million shares of Class A common stock to cover the non-cash portion of the transaction.
Post-acquisition, former SilverBow shareholders now hold about 23% of the combined company on a fully diluted basis.
Crescent CEO David Rockecharlie said: “Today is an exciting day for Crescent. We are well positioned to create value, and I am grateful for the trust from our original Crescent and new SilverBow shareholders, each of whom voted with an overwhelming majority to approve our merger and to take equity consideration and participate in the go-forward company.
“Through disciplined investing and operations, we have delivered profitable growth, tripling the size of our business over the last four years. We have created a premier growth through acquisition platform by executing on our cash flow and returns-oriented strategy. Today, we are focused on rapidly integrating our new assets and personnel and continuing to deliver on the significant synergies we’ve identified to strengthen returns.”
Crescent has announced plans to provide pro forma guidance for the second half of 2024 to reflect the acquisition’s impact.
Additionally, the company is set to issue its financial and operating results for the second quarter of 2024 after the market closes on 5 August 2024.
