SilverBow (SBOW) Completes Asset Deal in Eagle Ford Shale
SilverBow (SBOW) increases its natural gas portfolio in the Western Eagle Ford, while adding oil acreage in three new counties.
SilverBow Resources, Inc. SBOW completed its previously announced deal to acquire oil and gas assets in the Eagle Ford shale from an unidentified seller.
The total consideration for the Eagle Ford assets involved $33 million, which includes 1.5 million shares of SilverBow common stock.
With the agreement, the company increased its natural gas portfolio in the Western Eagle Ford, while adding oil acreage in three new counties, namely Atascosa, Lavaca, and Fayette. The acquisition added 45,000 net acres in the Eagle Ford shale.
SilverBow is actively involved in the exploration, development, and production of oil and gas in the Eagle Ford Shale of South Texas. With the latest natural gas-rich acquisition, the company continues to expand its Lower 48 acreage to gain a competitive edge in the marketplace.
The Eagle Ford shale is currently witnessing increasing activities as fuel prices continue to remain high. Notably, this is SilverBow's second acquisition in the Eagle Ford shale, following its purchase of non-operated interests in the Eagle Ford and Austin Chalk locations. The acquisition also provided additional ownership interest in producing wellbores in the La Mesa position, and will add 10 million cubic feet per day of net gas production, 850 net acres, and 17 net drilling locations.
In April, the recently acquired properties produced nearly 1,580 net barrels of oil equivalent per day, of which 39% comprised liquids. The latest Eagle Ford shale acquisition will lead to increased production and boost the company’s cash flow.
Company Profile & Price Performance
Headquartered in Houston, TX, SilverBow is an upstream energy company that engages in the exploration, development, and production of oil and natural gas properties.
Shares of the company have outperformed the industry in the past six months. Its stock has gained 266% compared with the industry’s 36.6% growth.
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Zacks Rank & Other Stocks to Consider
The company currently flaunts a Zack Rank #1 (Strong Buy).
Some other top-ranked players in the energy space are Royal Dutch Shell plc (RDS.A) and Range Resources Corporation RRC, each currently sporting a Zacks Rank #1, and Penn Virginia Corporation PVAC, carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Shell’s earnings for 2021 are expected to rise 20.1% year over year.
Range Resources’ earnings for 2021 are anticipated to increase 49% year over year.
Penn Virginia’s earnings for 2021 are anticipated to rise 56.2% year over year.
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Royal Dutch Shell PLC (RDS.A): Free Stock Analysis Report
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