休斯顿（美国商业资讯） SilverBow Resources, Inc.（纽约证券交易所股票代码：SBOW）（“SilverBow”或“公司”）今天公布了 2024 年第一季度的运营和财务业绩。更新后的公司演示文稿已发布到 SilverBow 的网站，可以通过 www.sbow.com访问。公司计划于 2024 年 5 月 2 日星期四上午 9 点（美国东部时间上午 10 点）召开电话会议。参与详情可在本新闻稿中找到。

2024 年第一季度亮点：

• 报告的平均净产量处于指导值的上半部分，即每天 91,400 桶油当量 (“Boe/d”)（46% 石油/液体）；石油净产量同比增长 116%，达到每天 2.45 万桶石油（“Bbls/d”）；增长反映了 2023 年底南德克萨斯州的收购以及油井生产率和周期时间效率的持续提高
• 投资 1.09 亿美元资本，比普遍预期低约 20%
• 产生 1,600 万美元的净亏损，或稀释后每股 (0.61 美元)（所有每股金额均按稀释后计算），其中包括公司衍生品合同价值的 9,000 万美元的未实现净亏损以及 9,000 万美元的咨询费约 500 万美元，非 GAAP 调整后 EBITDA 为 2 亿美元，非 GAAP 自由现金流 (“CF”) 为 5600 万美元³
• 自 2023 年底完成对南德克萨斯州的收购以来，总债务减少了 1.78 亿美元¹。第一季度末的杠杆率为1.35x ²，低于SilverBow在宣布收购之前的杠杆率
• 增强 2024 年前景，提高全年产量、自由现金流和债务削减预期：
  • 产量预期上调 5%，达到 94 MBoe/d 的中值，其中石油/液体产量占产量的 48%
  • FCF 预估增加 5,000 万美元，即 36%，达到 1.88 亿美元的中值
  • 公司进一步优化了 2024 年投资计划，目前将 85% 的资本分配给回报率更高的石油和液体开发项目。全年资本计划 470 美元至 5.1 亿美元保持不变
  • 由于加速偿还债务，将预期年末杠杆率下调至约1.25倍，并预计在2025年实现低于1.0倍的长期目标
• 通过过去三年的多次交易以及最近的一次土地交易，SilverBow 在 Eagle Ford 液体丰富的窗口中聚集了连续 25,000 英亩的土地。公司已在该位置钻探了6口井，井况和回报均超出预期。该职位拥有估计 150 多个高回报开发地点。 SilverBow 计划今年在该资产上额外钻探 10-12 口井
• 实施了成功的重复压裂计划，初始井的内部收益率超过 100%。 SilverBow 已确定 100 多个重复压裂机会，并计划在 2024 年进行更多重复压裂
• 该公司在 Austin Chalk 钻探了第一口马蹄形（U 形）井，证明其有能力通过开发复杂的面积配置来获得显着的优势。已确定30多个马蹄形开发地点
• 年初至今取得了重大的运营成就，预计将带来可持续的资本效率和额外资源的回收。⁴  SilverBow 在德克萨斯州南部收购区域的前 10 口井的钻井业绩比之前运营商的业绩高​​出 30%

管理层评论

SilverBow 首席执行官 Sean Woolverton 表示：“我们第一季度的业绩非常出色，是我们业务发展轨迹的一个指标。随着南德克萨斯收购的成功整合，我们拥有了更大的规模、资本灵活性、产品多样性和现金流生成。根据我们既定的战略，我们将在回报方面保持严格要求，并在向低于 1.0 倍的长期杠杆率目标迈进时加速偿还债务。本季度的强劲表现支持我们上调 2024 年全年生产和自由现金流前景。”

伍尔弗顿先生进一步评论道：“这清楚地表明我们最近的交易对业务有很大的促进作用，并加速了我们既定战略的实施，为所有股东创造更多价值。”

2024 年第一季度 财务和运营摘要

2024 年第一季度，SilverBow 报告净亏损 1600 万美元，即每股亏损 0.61 美元，其中包括公司衍生品合约价值的未实现净亏损 9000 万美元和约 500 万美元的咨询费。非 GAAP 调整后 EBITDA 为 2 亿美元，非 GAAP FCF 为 5,600 万美元³。该期间的财务业绩受到 SilverBow 指导值上半部分的生产业绩的推动。平均净产量比上年增长 80%，达到 91.4 MBoe/d。石油产量平均为 24.5 MBbls/d，较同期增长近 116%。本季度的生产结构包括 54% 的天然气、27% 的原油和 19% 的液化天然气 (“GL”)。

如果不考虑对冲的影响，本季度原油和天然气的实现量分别为西德克萨斯中质原油 (“TI”) 和亨利中心原油的 97% 和 88%。按产品划分的平均实现价格为每桶石油 74.65 美元、每千立方英尺 (“cf”) 天然气 1.96 美元、每桶 NGL 23.15 美元（WTI 基准的 30%）。请参阅本版本中包含的表格，了解完整的产量和定价信息。

本季度的总生产费用（包括租赁运营费用、运输和加工费用以及生产税）为每桶油当量 (“OE”) 8.14 美元。

按权责发生制计算，本季度资本投资总额为 1.09 亿美元。

运营更新

SilverBow 本季度运营了三座钻井平台，业务主要集中在中央石油、西部凝析油和东部延伸地区，并上线了 12 口净井。该公司计划于 2024 年 6 月将活动减少至两台钻机。

具体到德克萨斯州南部的收购，SilverBow 目前正在钻探一个 10 井平台，开发四个堆叠区域（上伊格尔福特和下伊格尔福特以及中下奥斯汀白垩）。该公司在德克萨斯州南部收购区域的前 10 口井的钻井业绩比之前运营商的业绩高​​出 30%。该垫预计将于 2024 年第二季度末首次生产。

根据SilverBow建立规模化、持久的投资组合的战略目标，公司在第一季度后完成了与第三方的土地交换；这有助于组建一个连续的 25,000 英亩土地。该总位置位于德克萨斯州拉萨尔县和麦克马伦县，拥有 150 多个潜在液体丰富地点。 SilverBow 瞄准了这个被忽视的领域，相信历史上的钻井和完井实践低估了 Eagle Ford 的真正潜力。 SilverBow 利用其经过验证的操作实践来提高油井生产率和回报。迄今为止，该区域已钻探了六口井，预计回报率超过100%，超出了SilverBow的最初预期。该地区计划于 2024 年在该地区额外增建 10-12 口井，从而立即争夺资本。通过严格的收购和贸易策略，公司在不增加现金成本的情况下建立了这一有影响力的库存状况。

第一季度，公司取得了关键的运营成果，包括在 Austin Chalk 的第一口马蹄形（U 形）井的重复压裂和钻探取得了巨大成功。这两项努力都显着提高了回报，并且可以在 SilverBow 的投资组合中重复实施。

前两次重复压裂的成本均低于 400 万美元。 SilverBow预计这些项目将在不到10个月的时间内实现支付，项目回报率超过100%。该公司已在其产品组合中确定了 100 多个重复压裂机会，并计划今年进行更多重复压裂。

SilverBow 最近在利夫奥克县钻探了一口 8,900 英尺的马蹄形（U 形）侧井。该井最近竣工，旨在优化开发复杂的面积配置，以提高项目回报、缩短周期时间并获取额外资源。在将马蹄井的结果与两个传统的较短侧井的结果进行比较时，SilverBow 估计总钻探成本和完整成本降低了约 25%，周期时间缩短了约 15%。成功的开发方法将用于在邻近地区开发更多目标。该公司已确定了 30 多个马蹄形井，可以在复杂的搁浅区域配置上钻探，以释放潜在的重大价值。

2024年展望

SilverBow 预计 2024 年第二季度的产量将为 90.8 - 95.4 MBoe/d，石油产量为 23.5 - 25.0 MBbls/d。对于 2024 年全年，公司将产量指导提高至 90.0 - 97.3 MBoe/d。根据修订后的指导意见，SilverBow 2024 年全年石油/液体产量预计将占公司总产量的 48%。与 SilverBow 的回报驱动战略一致，该公司的销量指导假设在 2024 年剩余时间内 NGL 生产流中的乙烷将被完全回收。

SilverBow 将 2024 年全年自由现金流预估上调至 175 至 2 亿美元，预计 2024 年全年资本投资保持在 470 至 5.1 亿美元不变。有关公司前景的更多详细信息，请参阅本新闻稿中的表格。

风险管理

SilverBow 在通过使用衍生品有效管理商品价格风险方面拥有良好的记录。截至 2024 年 4 月 26 日，公司使用指导中点对 2024 年剩余时间内总产量的 63% 进行了对冲； 75% 的天然气产量以每百万英热单位 3.78 美元的平均价格进行对冲； 67% 的石油以每桶 74.87 美元的平均价格进行对冲，28% 的液化天然气以每桶 25.92 美元的平均价格进行对冲。对冲金额包括掉期和项圈，平均价格考虑了项圈的底价。请参阅今天发布在 SilverBow 网站上的公司演示文稿，了解该公司衍生品合约的详细摘要。

资本结构和流动性

截至 2024 年 3 月 31 日，SilverBow 拥有约 6.05 亿美元的流动资金，其中包括 100 万美元的现金和其高级担保循环信贷安排（“信贷安排”）下的 6.04 亿美元的可用资金。截至 2024 年 4 月 30 日，公司在信贷安排下拥有 6.27 亿美元的未动用产能，以及 300 万美元的现金，从而产生 6.3 亿美元的流动性。这意味着自完成南德克萨斯州收购以来的五个月内债务减少了 1.78 亿美元；短期内，削减债务仍然是自由现金流的主要用途。

截至 2024 年 3 月 31 日，SilverBow 报告的总债务为 11 亿美元，杠杆率为非 GAAP 调整后 EBITDA 为 8.14 亿美元³，其中根据其信贷融资中的杠杆率计算，包括之前收购资产的预计贡献到截止日期总计 1.89 亿美元。截至2024年3月31日，公司杠杆率为1.35x ²。 SilverBow 预计今年退出时的杠杆率约为 1.25 倍，其中包括与南德克萨斯州收购相关的 5000 万美元延期付款。假设当前带钢价格，公司预计到 2025 年将达到低于 1.0 倍的目标。截至 2024 年 4 月 26 日，SilverBow 已发行普通股总数为 2550 万股。

电话会议详情

SilverBow 计划于 2023 年 5 月 2 日星期四上午 9 点（美国东部时间上午 10 点）为投资者举办电话会议。投资者和参与者可以拨打 1-800-715-9871（美国）或 1-646- 收听电话会议。 307-1963（国际）并请求 SilverBow Resource 2024 年第一季度收益电话会议（会议 ID：5582880）或访问公司网站。电话会议的同步网络广播可在www.sbow.com/investor-relations/Investor-Relations-Events-Presentations/event-calendar/default.aspx上找到 。该网络广播将被存档，以便在公司网站上重播 14 天。

关于银弓资源公司

SilverBow Resources, Inc.（纽约证券交易所代码：SBOW）是一家总部位于休斯敦的能源公司，在德克萨斯州南部的 Eagle Ford 和 Austin Chalk 积极从​​事石油和天然气的勘探、开发和生产。该公司在德克萨斯州南部拥有 30 多年的运营历史，对区域油藏有着深入的了解，可利用这些油藏来组建高质量的钻井库存，同时不断增强其运营，以最大限度地提高资本投资回报。欲了解更多信息，请访问 www.sbow.com。我们网站上的信息不属于本新闻稿的一部分。

前瞻性陈述

本新闻稿包含经修订的 1933 年证券法第 27A 条和经修订的 1934 年证券交易法第 21E 条含义内的“前瞻性陈述”。这些前瞻性陈述代表了管理层对未来事件的期望或信念，本新闻稿中描述的结果有可能无法实现。这些前瞻性陈述基于当前的预期和假设，并受到许多风险和不确定性的影响，其中许多风险和不确定性超出了我们的控制范围。本新闻稿中除历史事实陈述外的所有陈述，包括有关我们的战略、收购的好处、未来运营、指导和展望、财务状况、油井预期和钻探计划、估计产量水平、预期石油和天然气定价、长期库存估计、估计石油和天然气储量或其现值、储量增加、服务成本、通货膨胀的影响、未来自由现金流和预期杠杆率、地点的价值和开发、资本支出、预算、预计成本、前景、计划和管理目标均为前瞻性陈述。在本报告中使用时，词语“将”、“可以”、“相信”、“预期”、“打算”、“估计”、“预计”、 “指导”“期望”“说”“继续”“潜力”“计划”“项目”“定位” “应该”和类似的表达方式旨在识别前瞻性陈述，尽管并非所有前瞻性陈述都包含此类识别词。可能导致实际结果与我们预期存在重大差异的重要因素包括但不限于以下风险和不确定性：石油输出国组织成员国、俄罗斯和其他产油国在石油方面采取的进一步行动石油生产水平以及该水平潜在变化的公告；与最近完成的收购和这些收购的整合相关的风险；天然气、石油和液化天然气价格波动；获得许可和政府批准的能力；我们的借款能力、未来契约合规性、现金流和流动性，包括我们满足短期或长期流动性需求的能力；资产处置工作或其时间安排或结果；正在进行的和未来的合资企业，其结构和实质内容，以及最终确定的可能性或时间安排；资本支出的金额、性质和时间安排，包括未来的开发成本；未来石油和天然气生产的时间、成本和数量；钻井和生产设备的可用性或油田劳动力的可用性；可用性，资本成本和条件；钻井和完井的时机和成功；石油和天然气运输和储存能力的可用性和成本；开发和开发我们的财产以及进行其他业务的成本；石油和天然气行业的竞争；总体经济和政治状况，包括通货膨胀压力、利率进一步上升、总体经济放缓或衰退、金融机构不稳定、政治紧张局势和战争（包括乌克兰和中东持续冲突的未来发展）；世界卫生事件（包括健康危机和流行病）的严重程度和持续时间，以及相关的经济影响，包括石油和天然气行业的中断、供应链中断和运营挑战；将资产货币化的机会；我们执行战略举措（包括收购）的能力；我们风险管理活动的有效性，包括对冲策略；交易对手和信贷市场风险；悬而未决的法律和环境问题，包括气候变化和相关法规对我们业务的潜在影响；股东激进主义的影响以及公司董事会组成的任何变化；第三方（包括客户、服务提供商和股东）的行为；当前和未来政府对石油和天然气行业的监管和税收；包括与 2024 年美国大选相关的变化；世界石油和天然气市场以及石油和天然气生产国的发展；我们未来经营业绩的不确定性；以及公司向 SEC 提交的报告中讨论的其他风险和不确定性，包括截至 2023 年 12 月 31 日的 10-K 表格年度报告，以及随后的 10-Q 表格季度报告和 8 表格当前报告-K。包括气候变化和相关法规对我们业务的潜在影响；股东激进主义的影响以及公司董事会组成的任何变化；第三方（包括客户、服务提供商和股东）的行为；当前和未来政府对石油和天然气行业的监管和税收；包括与 2024 年美国大选相关的变化；世界石油和天然气市场以及石油和天然气生产国的发展；我们未来经营业绩的不确定性；以及公司向 SEC 提交的报告中讨论的其他风险和不确定性，包括截至 2023 年 12 月 31 日的 10-K 表格年度报告，以及随后的 10-Q 表格季度报告和 8 表格当前报告-K。包括气候变化和相关法规对我们业务的潜在影响；股东激进主义的影响以及公司董事会组成的任何变化；第三方（包括客户、服务提供商和股东）的行为；当前和未来政府对石油和天然气行业的监管和税收；包括与 2024 年美国大选相关的变化；世界石油和天然气市场以及石油和天然气生产国的发展；我们未来经营业绩的不确定性；以及公司向 SEC 提交的报告中讨论的其他风险和不确定性，包括截至 2023 年 12 月 31 日的 10-K 表格年度报告，以及随后的 10-Q 表格季度报告和 8 表格当前报告-K。

所有前瞻性陈述仅代表本新闻稿发布之日的情况。您不应过度依赖这些前瞻性陈述。公司的资本预算、运营计划、服务成本前景和发展计划可能随时发生变化。尽管我们认为本新闻稿中的前瞻性陈述所反映或暗示的计划、意图和期望是合理的，但我们不能保证这些计划、意图或期望将会实现。本文和公司向 SEC 提交的文件中指出的风险因素和其他因素可能导致其实际结果与任何前瞻性声明中包含的结果存在重大差异。这些警告性声明符合我们或代表我们行事的人员的所有前瞻性声明。

所有随后由我们或代表我们行事的人作出的书面和口头前瞻性陈述均明确符合上述规定。我们没有义务公开发布对任何此类前瞻性陈述的任何修订结果，这些前瞻性陈述可能是为了反映本新闻稿发布之日之后的事件或情况或反映意外事件的发生而做出的，除非法律要求。

（脚注）

¹ 截至 2024 年 4 月 30 日，公司信贷安排下的未偿还借款为 5.73 亿美元。

² 杠杆率定义为过去 12 个月期间未摊销折扣前的长期债务总额除以杠杆率调整后 EBITDA（本新闻稿中表格中定义和调节的非 GAAP 衡量标准）。

³ 调整后的 EBITDA、调整后的杠杆率 EBITDA 和 FCF 是本新闻稿中表格中定义和调节的非 GAAP 指标。

⁴ 请参阅该公司在其网站上发布的公司演示文稿中的详细信息，该演示文稿涉及重振现有油井、钻马蹄形（U 形）井以优化开发以及进一步增强南德克萨斯州收购的钻井能力。

（后续财务摘要）

公司计算的非公认会计原则衡量标准的定义（未经审计）

除财务报表外，还提供了以下非 GAAP 指标，因为 SilverBow 相信这些指标和绩效指标被投资界广泛使用，包括投资者、研究分析师和其他人，用于评估和比较上游石油和天然气公司投资决策或建议。所提出的这些衡量标准在公司和投资专业人士之间可能有不同的计算，并且可能无法与其他人提供的相同衡量标准直接比较。非公认会计准则衡量标准不应被孤立考虑，也不应被视为相关公认会计准则衡量标准或根据公认会计准则提出的公司财务或经营业绩的任何其他衡量标准的替代品。下面列出了这些非公认会计准则衡量指标与最直接可比的公认会计准则衡量指标的调节表。这些措施可能无法与其他公司类似名称的措施相比较。

调整后 EBITDA：除了按照 GAAP 报告的净收入（亏损）外，公司还报告了归属于普通股股东的调整后 EBITDA。调整后的 EBITDA 计算为净收入（损失）加上（减去）折旧、消耗和摊销、资产报废义务的增加、利息支出、商品衍生品合约的净损失（收益）、为持有的商品衍生品合约收取（支付）的金额结算、所得税费用（收益）；以及股权激励费用。调整后的 EBITDA 不包括 SilverBow 认为影响经营业绩可比性的某些项目，包括通常非经常性的项目或其时间和/或金额无法合理估计的项目。调整后的 EBITDA 供公司管理层和 SilverBow 财务报表的外部用户（例如投资者、商业银行和其他人）使用，以评估公司与其他公司相比的经营业绩，而不考虑融资情况方法、资本结构或历史成本基础。它还用于评估 SilverBow 承担和偿还债务以及为资本支出提供资金的能力。调整后的 EBITDA 不应被视为净收入（损失）、营业收入（损失）、经营活动提供（用于）的现金流量或根据 GAAP 提出的任何其他财务业绩或流动性衡量标准的替代方案。调整后的 EBITDA 非常重要，因为它被视为公司与摩根大通银行、国家协会（作为行政代理人）以及某些贷款方签订的首次修订和重述的高级担保循环信贷协议中的财务契约之一（经修订的“ redit 协议”），SilverBow 的重要流动性来源。有关信贷协议及其契约的讨论，请参阅公司 2023 年 10-K 表格。

杠杆率调整后 EBITDA：根据 SilverBow 信贷融资的杠杆率计算，公司对调整后 EBITDA 的计算进行了一定调整。杠杆率的调整后 EBITDA 计算为调整后 EBITDA 加上（减去）与已完成收购相关的预计 EBITDA 贡献。该公司认为，杠杆率的调整后 EBITDA 对投资者有用，因为它反映了 SilverBow 信贷融资管理代理在计算其杠杆率契约时使用的过去 12 个月的 EBITDA。

现金一般及行政费用：现金一般及行政费用是一项非公认会计准则衡量标准，计算方法为净一般及管理费用减去基于股份的薪酬。公司认为，管理层、分析师和投资者普遍使用现金管理费用作为不同时期可比成本管理和运营效率的指标。此外，SilverBow 认为，分析师和其他人在对石油和天然气行业的公司进行估值、比较和投资建议时使用现金 G&A 费用，以便分析 G&A 支出，而不考虑基于股票的薪酬，而股票薪酬可能因公司而异。公司。现金 G&A 费用不应被视为 G&A 费用总额的替代方案，或者比 G&A 费用总额更有意义。公司不时提供前瞻性现金一般及行政费用估计或目标；然而，SilverBow 无法提供这些前瞻性非 GAAP 指标与最直接可比的前瞻性 GAAP 指标的定量调节，因为目前无法获取或估计估计此类前瞻性 GAAP 指标所需的项目。不合理的努力。未来期间的调节项目可能很重要。

自由现金流： 自由现金流的计算方式为调整后的 EBITDA（定义见上文）加上（减去）现金利息费用和银行费用、资本支出和当期所得税（费用）收益。该公司认为，自由现金流对投资者和分析师有用，因为它有助于评估 SilverBow 的经营业绩，以及石油和天然气行业内公司的估值、比较、评级和投资建议。 SilverBow 使用此信息作为其与石油和天然气行业其他公司的经营业绩进行比较的基础之一。自由现金流不应被视为净收入（损失）、营业收入（损失）、经营活动提供（用于）的现金流或根据公认会计原则提出的任何其他财务业绩或流动性衡量标准的替代方案。公司不时提供前瞻性的自由现金流估计或目标；然而，SilverBow 无法提供这些前瞻性非 GAAP 指标与最直接可比的前瞻性 GAAP 指标的定量调节，因为目前无法获取或估计估计此类前瞻性 GAAP 指标所需的项目。不合理的努力。未来期间的调节项目可能很重要。

总债务与调整后 EBITDA（杠杆率）：杠杆率的计算方法为总债务（定义为不包括未摊销折扣和债务发行成本的长期债务）除以最近 12 个月期间的调整后 EBITDA。

2024 年第二季度和 2024 年全年指导

 

资料来源：SilverBow Resources, Inc.

HOUSTON–(BUSINESS WIRE)– SilverBow Resources, Inc. (NYSE: SBOW) (“SilverBow” or the “Company”) today announced operating and financial results for the first quarter of 2024. An updated corporate presentation has been posted to SilverBow’s website and can be accessed at www.sbow.com. The Company plans to host a conference call at 9 a.m. CT (10 a.m. ET) on Thursday, May 2, 2024. Participation details can be found within this release.

First Quarter 2024 Highlights:

• Reported average net production in the upper half of guidance of 91.4 thousand barrels of oil equivalent per day (“MBoe/d”) (46% oil/liquids); grew year-over-year net oil production by 116% to 24.5 thousand barrels of oil per day (“MBbls/d”); increases reflect the South Texas acquisition in late 2023 and ongoing gains in well productivity and cycle time efficiencies
• Invested $109 million in capital, approximately 20% below consensus expectations
• Generated a net loss of $16 million, or ($0.61) per diluted share (all per share amounts stated on a diluted basis), which includes a net unrealized loss on the value of the Company’s derivative contracts of $90 million and advisory fees of approximately $5 million, non-GAAP Adjusted EBITDA of $200 million and non-GAAP free cash flow (“FCF”) of $56 million³
• Reduced total debt by $178 million since closing the South Texas acquisition in late 2023¹. Leverage ratio at the end of the first quarter was 1.35x², less than SilverBow’s leverage ratio prior to the acquisition announcement
• Enhanced 2024 outlook, raised full year production, FCF and debt reduction expectations:
  • Production expectations raised 5% to a midpoint of 94 MBoe/d, with oil/liquids representing 48% of volumes
  • FCF estimate increased $50 million, or 36%, to a midpoint of $188 million
  • The Company further optimized its planned 2024 investments and is now allocating 85% of capital to higher-return oil and liquids developments. Full year capital program of $470 – $510 million remains unchanged
  • Lowered expected year-end leverage ratio to approximately 1.25x on accelerated debt paydown and expect to attain long-term target of less than 1.0x in 2025
• Through multiple transactions over the last three years and culminating with a recent acreage trade, SilverBow has assembled a contiguous 25,000 gross acre position in the liquids-rich window of the Eagle Ford. The Company has drilled six wells on the position with well results and returns exceeding expectations. This position holds an estimated 150-plus high-return development locations. SilverBow plans to drill 10-12 additional wells on the asset this year
• Implemented a successful refrac program with initial wells demonstrating internal rates of return of more than 100%. SilverBow has identified more than 100 refrac opportunities and plans additional refracs in 2024
• The Company drilled its first horseshoe (U-shaped) well in the Austin Chalk, proving its ability to capture significant upside through development of complex acreage configurations. More than 30 horseshoe development locations have been identified
• Delivered significant operational achievements year-to-date which are expected to lead to sustainable capital efficiencies and recovery of additional resources.⁴ SilverBow’s drilling performance on its first 10 wells on the South Texas acquisition acreage exceeds the prior operator’s performance by 30%

MANAGEMENT COMMENTS

Sean Woolverton, SilverBow’s Chief Executive Officer, said, “Our first quarter results were outstanding and are an indicator of the trajectory of our business. With the successful integration of our South Texas acquisition, we have greater scale, capital flexibility, product diversity and cash flow generation. Consistent with our stated strategy, we are staying disciplined on returns and demonstrating accelerated debt paydown as we march towards our long-term leverage ratio target of less than 1.0x. Strong performance during this quarter supports an increase to our full year 2024 outlook for production and free cash flow.”

Mr. Woolverton commented further, “We are clearly demonstrating our recent transaction is highly accretive to the business and accelerates delivery of our stated strategy to create further value for all shareholders.”

FIRST QUARTER 2024 FINANCIAL AND OPERATING SUMMARY

For the first quarter of 2024, SilverBow reported a net loss of $16 million, or ($0.61) per share, which includes a net unrealized loss on the value of the Company’s derivative contracts of $90 million and advisory fees of approximately $5 million. Non-GAAP Adjusted EBITDA was $200 million and non-GAAP FCF was $56 million³. Financial results in the period were driven by production results in the upper half of SilverBow’s guidance. Average net production increased 80% over the prior year to 91.4 MBoe/d. Oil production averaged 24.5 MBbls/d, up nearly 116% over the comparable period. Production mix for the quarter consisted of 54% natural gas, 27% crude oil and 19% natural gas liquids (“NGLs”).

Stated without the impact of hedging, crude oil and natural gas realizations in the quarter were 97% and 88% of West Texas Intermediate (“WTI”) and Henry Hub, respectively. Average realized prices by product were $74.65 per barrel of oil, $1.96 per thousand cubic feet (“Mcf”) of natural gas and $23.15 per barrel of NGLs (30% of WTI benchmark). Please refer to the tables included in this release for complete production volumes and pricing information.

Total production expenses in the quarter, which include lease operating expenses, transportation and processing expenses and production taxes, were $8.14 per barrel of oil equivalent (“Boe”).

Capital investments for the quarter totaled $109 million on an accrual basis.

OPERATIONS UPDATE

SilverBow operated three rigs in the quarter, with operations primarily focusing on the Central Oil, Western Condensate and Eastern Extension areas, and brought online 12 net wells. The Company plans to reduce activity to two rigs in June 2024.

Specific to the South Texas acquisition, SilverBow is currently drilling a 10-well pad developing four stacked zones (Upper and Lower Eagle Ford and Middle and Lower Austin Chalk). The Company’s drilling performance on its first 10 wells on the South Texas acquisition acreage exceeds the prior operator’s performance by 30%. First production from this pad is expected late in the second quarter of 2024.

In line with SilverBow’s strategic goal of building a scaled and durable portfolio, the Company completed a land swap with a third party subsequent to the first quarter; which aided in assembling a contiguous 25,000 gross acre position. The total position has more than 150 prospective liquids-rich locations in La Salle and McMullen counties, Texas. SilverBow targeted this overlooked area with confidence that historical drilling and completion practices undervalued the true potential of the Eagle Ford. SilverBow used its proven operational practices to enhance well productivity and returns. To date, six wells have been drilled on the acreage with estimated rates of return of more than 100%, exceeding SilverBow’s initial expectations. The area immediately competes for capital with an additional 10-12 wells planned for the area in 2024. Through its disciplined acquisition and trade strategy, the Company built this impactful inventory position at no incremental cash cost.

In the first quarter, the Company advanced key operational achievements, including highly-successful refracs and drilling of our first horseshoe (U-shaped) well in the Austin Chalk. Both efforts significantly enhanced returns and can be repeated across SilverBow’s portfolio.

The first two refracs were each completed for under $4 million. SilverBow estimates that the projects will achieve payout in less than 10 months and have a project rate of return of more than 100%. The Company has identified more than 100 refrac opportunities across its portfolio and is planning for additional refracs this year.

SilverBow recently drilled an 8,900 foot horseshoe (U-shaped) lateral well in Live Oak County. The well, which was recently completed, was designed to optimally develop a complex acreage configuration to enhance project returns, reduce cycle times and capture additional resource. When comparing results of the horseshoe well to two traditional, shorter lateral wells, SilverBow estimates that total drill and complete costs were about 25% lower, and cycle times were improved by about 15%. The successful development approach will be deployed to develop additional targets in the immediate area. The Company has identified more than 30 horseshoe wells that can be drilled on complex, stranded acreage configurations to unlock potential significant value.

2024 OUTLOOK

For the second quarter of 2024, SilverBow expects its production to be 90.8 – 95.4 MBoe/d, with oil volumes of 23.5 – 25.0 MBbls/d. For the full year 2024, the Company increased its production guidance to 90.0 – 97.3 MBoe/d. Based on the revised guidance, SilverBow’s full year 2024 oil/liquids volumes are expected to comprise 48% of the Company’s total production. Consistent with SilverBow’s returns driven strategy, the Company’s volume guidance assumes full ethane recovery in the NGL production stream for the remainder of 2024.

SilverBow increased its estimate for full year 2024 free cash flow to $175 – $200 million with estimated full year 2024 capital investments unchanged at $470 – $510 million. Additional detail on the Company’s outlook can be found in the table included in this release.

RISK MANAGEMENT

SilverBow has a proven track record of effectively managing commodity price risks through the use of derivatives. As of April 26, 2024, the Company had 63% of total production hedged for the remainder of 2024, using the midpoint of guidance; 75% of natural gas production hedged at an average price of $3.78 per million British thermal units; 67% of oil hedged at an average price of $74.87 per barrel and 28% of NGLs hedged at an average price of $25.92 per barrel. The hedged amounts are inclusive of both swaps and collars with the average price factoring in the floor price of the collars. Refer to the corporate presentation posted on SilverBow’s website today for a detailed summary of the Company’s derivative contracts.

CAPITAL STRUCTURE AND LIQUIDITY

As of March 31, 2024, SilverBow had approximately $605 million of liquidity, consisting of $1 million of cash and $604 million of availability under its senior secured revolving credit facility (“Credit Facility”). As of April 30, 2024, the Company had $627 million of undrawn capacity under the Credit Facility and $3 million of cash resulting in $630 million of liquidity. This represents $178 million of debt reduction in the five months since closing the South Texas acquisition; debt reduction remains the primary use of FCF in the near-term.

As of March 31, 2024, SilverBow reported total debt of $1.1 billion and non-GAAP Adjusted EBITDA for Leverage Ratio of $814 million³, which, in accordance with the leverage ratio calculation in its Credit Facility, includes pro forma contributions from acquired assets prior to their closing dates totaling $189 million. As of March 31, 2024, the Company had a leverage ratio of 1.35x². SilverBow expects to exit the year at a leverage ratio of approximately 1.25x which is inclusive of the $50 million deferred payment associated with the South Texas acquisition. Assuming current strip prices, the Company expects to reach its goal of less than 1.0x in 2025. As of April 26, 2024, SilverBow had 25.5 million total common shares outstanding.

CONFERENCE CALL DETAILS

SilverBow plans to host a conference call for investors at 9 a.m. CT (10 a.m. ET) on Thursday May 2, 2023. Investors and participants can listen to the call by dialing 1-800-715-9871 (U.S.) or 1-646-307-1963 (International) and requesting SilverBow Resource’s First Quarter 2024 Earnings Conference Call (Conference ID: 5582880) or by visiting the Company’s website. A simultaneous webcast of the call may be found at www.sbow.com/investor-relations/Investor-Relations-Events-Presentations/event-calendar/default.aspx. The webcast will be archived for replay on the Company’s website for 14 days.

ABOUT SILVERBOW RESOURCES, INC.

SilverBow Resources, Inc. (NYSE: SBOW) is a Houston-based energy company actively engaged in the exploration, development, and production of oil and gas in the Eagle Ford and Austin Chalk in South Texas. With more than 30 years of history operating in South Texas, the Company possesses a significant understanding of regional reservoirs which it leverages to assemble high-quality drilling inventory while continuously enhancing its operations to maximize returns on capital invested. For more information, please visit www.sbow.com. Information on our website is not part of this release.

FORWARD-LOOKING STATEMENTS

This release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements represent management’s expectations or beliefs concerning future events, and it is possible that the results described in this release will not be achieved. These forward-looking statements are based on current expectations and assumptions and are subject to a number of risks and uncertainties, many of which are beyond our control. All statements, other than statements of historical fact included in this press release, including those regarding our strategy, the benefits of the acquisitions, future operations, guidance and outlook, financial position, well expectations and drilling plans, estimated production levels, expected oil and natural gas pricing, long-term inventory estimates, estimated oil and natural gas reserves or the present value thereof, reserve increases, service costs, impact of inflation, future free cash flow and expected leverage ratio, value and development of locations, capital expenditures, budget, projected costs, prospects, plans and objectives of management are forward-looking statements. When used in this report, the words “will,” “could,” “believe,” “anticipate,” “intend,” “estimate,” “budgeted,” “guidance,” “expect,” “may,” “continue,” “potential,” “plan,” “project,” “positioned,” “should” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. Important factors that could cause actual results to differ materially from our expectations include, but are not limited to, the following risks and uncertainties: further actions by the members of the Organization of the Petroleum Exporting Countries, Russia and other allied producing countries with respect to oil production levels and announcements of potential changes in such levels; risk related to recently completed acquisitions and integrations of these acquisitions; volatility in natural gas, oil and NGL prices; ability to obtain permits and government approvals; our borrowing capacity, future covenant compliance, cash flow and liquidity, including our ability to satisfy our short- or long-term liquidity needs; asset disposition efforts or the timing or outcome thereof; ongoing and prospective joint ventures, their structures and substance, and the likelihood of their finalization or the timing thereof; the amount, nature and timing of capital expenditures, including future development costs; timing, cost and amount of future production of oil and natural gas; availability of drilling and production equipment or availability of oil field labor; availability, cost and terms of capital; timing and successful drilling and completion of wells; availability and cost for transportation and storage capacity of oil and natural gas; costs of exploiting and developing our properties and conducting other operations; competition in the oil and natural gas industry; general economic and political conditions, including inflationary pressures, further increases in interest rates, a general economic slowdown or recession, instability in financial institutions, political tensions and war (including future developments in the ongoing conflicts in Ukraine and the Middle East); the severity and duration of world health events, including health crises and pandemics, and related economic repercussions, including disruptions in the oil and gas industry, supply chain disruptions, and operational challenges; opportunities to monetize assets; our ability to execute on strategic initiatives, including acquisitions; effectiveness of our risk management activities, including hedging strategy; counterparty and credit market risk; pending legal and environmental matters, including potential impacts on our business related to climate change and related regulations; the impact of shareholder activism and any changes in composition of the Company’s board of directors; actions by third parties, including customers, service providers and shareholders; current and future governmental regulation and taxation of the oil and natural gas industry; including changes in connection with U.S. elections in 2024; developments in world oil and natural gas markets and in oil and natural gas-producing countries; uncertainty regarding our future operating results; and other risks and uncertainties discussed in the Company’s reports filed with the SEC, including its annual report on Form 10-K for the year ended December 31, 2023, and subsequent quarterly reports on Form 10-Q and current reports on Form 8-K.

All forward-looking statements speak only as of the date of this release. You should not place undue reliance on these forward-looking statements. The Company’s capital budget, operating plan, service cost outlook and development plans are subject to change at any time. Although we believe that our plans, intentions and expectations reflected in or suggested by the forward-looking statements we make in this release are reasonable, we can give no assurance that these plans, intentions or expectations will be achieved. The risk factors and other factors noted herein and in the Company’s SEC filings could cause its actual results to differ materially from those contained in any forward-looking statement. These cautionary statements qualify all forward-looking statements attributable to us or persons acting on our behalf.

All subsequent written and oral forward-looking statements attributable to us or to persons acting on our behalf are expressly qualified in their entirety by the foregoing. We undertake no obligation to publicly release the results of any revisions to any such forward-looking statements that may be made to reflect events or circumstances after the date of this release or to reflect the occurrence of unanticipated events, except as required by law.

(Footnotes)

¹ As of April 30, 2024, the Company had $573 million of outstanding borrowings under its Credit Facility.

² Leverage ratio is defined as total long-term debt, before unamortized discounts, divided by Adjusted EBITDA for Leverage Ratio (a non-GAAP measure defined and reconciled in the tables included in this release) for the trailing twelve-month period.

³ Adjusted EBITDA, Adjusted EBITDA for Leverage Ratio and FCF are non-GAAP measures defined and reconciled in the tables included in this release.

⁴ See details in the Company’s corporate presentation posted on its website regarding reinvigorating existing wells, drilling horseshoe (U-shaped) wells to optimize development and further drilling enhancements on its South Texas acquisition.

(Financial Highlights to Follow)

Definition of Non-GAAP Measures as Calculated by the Company (Unaudited)

The following non-GAAP measures are presented in addition to financial statements as SilverBow believes these metrics and performance measures are widely used by the investment community, including investors, research analysts and others, to evaluate and useful in comparing upstream oil and gas companies in making investment decisions or recommendations. These measures, as presented, may have differing calculations among companies and investment professionals and may not be directly comparable to the same measures provided by others. A non-GAAP measure should not be considered in isolation or as a substitute for the related GAAP measure or any other measure of a company’s financial or operating performance presented in accordance with GAAP. A reconciliation of each of these non-GAAP measures to the most directly comparable GAAP measure or measures is presented below. These measures may not be comparable to similarly titled measures of other companies.

Adjusted EBITDA: The Company presents Adjusted EBITDA attributable to common stockholders in addition to reported net income (loss) in accordance with GAAP. Adjusted EBITDA is calculated as net income (loss) plus (less) depreciation, depletion and amortization, accretion of asset retirement obligations, interest expense, net losses (gains) on commodity derivative contracts, amounts collected (paid) for commodity derivative contracts held to settlement, income tax expense (benefit); and share-based compensation expense. Adjusted EBITDA excludes certain items that SilverBow believes affect the comparability of operating results, including items that are generally non-recurring in nature or whose timing and/or amount cannot be reasonably estimated. Adjusted EBITDA is used by the Company’s management and by external users of SilverBow’s financial statements, such as investors, commercial banks and others, to assess the Company’s operating performance as compared to that of other companies, without regard to financing methods, capital structure or historical cost basis. It is also used to assess SilverBow’s ability to incur and service debt and fund capital expenditures. Adjusted EBITDA should not be considered an alternative to net income (loss), operating income (loss), cash flows provided by (used in) operating activities or any other measure of financial performance or liquidity presented in accordance with GAAP. Adjusted EBITDA is important as it is considered among the financial covenants under the Company’s First Amended and Restated Senior Secured Revolving Credit Agreement with JPMorgan Chase Bank, National Association, as administrative agent, and certain lenders party thereto (as amended, the “Credit Agreement”), a material source of liquidity for SilverBow. Please reference the Company’s 2023 Form 10-K for discussion of the Credit Agreement and its covenants.

Adjusted EBITDA for Leverage Ratio: In accordance with the Leverage Ratio calculation for SilverBow’s Credit Facility, the Company makes certain adjustments to its calculation of Adjusted EBITDA. Adjusted EBITDA for Leverage Ratio is calculated as Adjusted EBITDA plus (less) pro forma EBITDA contributions related to closed acquisitions. The Company believes that Adjusted EBITDA for Leverage Ratio is useful to investors because it reflects the last twelve months EBITDA used by the administrative agent for SilverBow’s Credit Facility in the calculation of its leverage ratio covenant.

Cash General and Administrative Expenses: Cash G&A expenses is a non-GAAP measure calculated as net general and administrative costs less share-based compensation. The Company believes that cash G&A is commonly used by management, analysts and investors as an indicator of cost management and operating efficiency on a comparable basis from period to period. In addition, SilverBow believes cash G&A expenses are used by analysts and others in valuation, comparison and investment recommendations of companies in the oil and gas industry to allow for analysis of G&A spend without regard to stock-based compensation which can vary substantially from company to company. Cash G&A expenses should not be considered as an alternative to, or more meaningful than, total G&A expenses. From time to time the Company provides forward-looking cash G&A estimates or targets; however, SilverBow is unable to provide a quantitative reconciliation of these forward-looking non-GAAP measures to the most directly comparable forward-looking GAAP measure because the items necessary to estimate such forward-looking GAAP measure are not accessible or estimable at this time without unreasonable efforts. The reconciling items in future periods could be significant.

Free Cash Flow: Free cash flow is calculated as Adjusted EBITDA (defined above) plus (less) cash interest expense and bank fees, capital expenditures and current income tax (expense) benefit. The Company believes that free cash flow is useful to investors and analysts because it assists in evaluating SilverBow’s operating performance, and the valuation, comparison, rating and investment recommendations of companies within the oil and gas industry. SilverBow uses this information as one of the bases for comparing its operating performance with other companies within the oil and gas industry. Free cash flow should not be considered an alternative to net income (loss), operating income (loss), cash flows provided by (used in) operating activities or any other measure of financial performance or liquidity presented in accordance with GAAP. From time to time the Company provides forward-looking free cash flow estimates or targets; however, SilverBow is unable to provide a quantitative reconciliation of these forward-looking non-GAAP measures to the most directly comparable forward-looking GAAP measure because the items necessary to estimate such forward-looking GAAP measure are not accessible or estimable at this time without unreasonable efforts. The reconciling items in future periods could be significant.

Total Debt to Adjusted EBITDA (Leverage Ratio): Leverage Ratio is calculated as total debt, defined as long-term debt excluding unamortized discount and debt issuance costs, divided by Adjusted EBITDA for the most recent twelve-month period.

Second Quarter 2024 & Full Year 2024 Guidance

 

Source: SilverBow Resources, Inc.