What do you believe would be a reasonable buy-out multiple to cash flow for Silverbow Resources?
To what extent, and at what levels, is Silverbow hedged in oil and gas this year?
Thanks.
If natural gas prices go DOUBLE DIGIT
Re: If natural gas prices go DOUBLE DIGIT
For Silverbow,
Company is predominately gas - think about only 16% oil
They were 62% hedged as of Feb 22, and it goes up to 70% for nat gas in the third quarter and back to 64% in the fourth quarter. Next year it drops to 30% for gas.
For oil, it looks like their average hedge price is $56 for the year, ballpark. A scan of the company's comments indicates that they are quite happy with their hedging strategy.
Company is predominately gas - think about only 16% oil
They were 62% hedged as of Feb 22, and it goes up to 70% for nat gas in the third quarter and back to 64% in the fourth quarter. Next year it drops to 30% for gas.
For oil, it looks like their average hedge price is $56 for the year, ballpark. A scan of the company's comments indicates that they are quite happy with their hedging strategy.
Re: If natural gas prices go DOUBLE DIGIT
6x operating CFPS is a fair buyout offer.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group