SilverBow Resources (SBOW) Update - April 20

[dan_s]

I sent this question to SilverBow IR:
Please clarify the Q1 realized oil & gas prices in Monday's operational update. "Realized oil price for first quarter of 2021 of $42.74 per barrel and realized gas price for first quarter of 2021 of $4.97 per million British thermal units (“MMBtu”), including hedge settlements;"
> Do the realized prices include only the cash settlements on your hedges paid in the quarter? I just want to make sure you aren't including the non-cash MTM adjustments on your hedges.
> You don't memtion your realized NGL price, why? What was it?
Call me if you are interested in presenting via webinar to our group. See: www.energyprospectus.com A lot of EPG members do own your stock already.

SilverBow's reply:
The 1Q21 pricing was correctly stated in the press release. It’s our realized price (after giving effect for settled hedges). Settled hedges would be cash paid within the quarter. MTM has nothing to do with that number. We will have more detail on our pricing, including NGL on our 1Q21 earnings release.
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So, this confirms my Q1 forecast. SilverBow's results should be close to of $2.48 earnings per share and $4.41 operating cash flow per share. First Call's EPS estimate is $1.02 for Q1.

[ajootian]

Thanks for getting this clarification Dan, very helpful. I'm surprised the stock has not gone up more on the news in that PR.

[dan_s]

Most of the small-caps are being ignored by the Wall Street Gang despite vastly improved fundamentals. SBOW is trading at less than 1X 2021 operating cash flow per share and it looks like they have HUGE upside in Webb County. Low trading volume is the primary reason lots of fund managers won't buy it.
Eventually, the value gap will be filled or the company will be takeover target.