SilverBow Resources (SBOW) Q3 Results - Nov 4
Posted: Fri Nov 04, 2022 5:07 pm
I just started working on SBOW's updated valuation. As expected, they reported a significant increase in production from Q2 to Q3 and reported EPS went from $3.98 in Q2 to $6.39 in Q3.
Sean Woolverton, SilverBow’s Chief Executive Officer, commented, “Our strong third quarter results highlight the success of our differentiated strategy to deliver growth while maintaining balance sheet discipline. We increased total production more than 40% year-over-year, with oil production up more than 100%, reflecting the impact of our seven strategic acquisitions over the past five quarters. We are proud of all that we accomplished in the quarter, including the announcement of a new dry gas position in the Dorado play of Webb County, which adds stacked pay development opportunities to our near-term drilling schedule. We also acquired incremental working interest and adjacent properties located at our liquids-weighted Karnes trough area. The enhanced economics and development potential of this area compete for drilling capital within our portfolio and warrant a dedicated drilling rig, which we currently plan to activate during the middle of 2023. The culmination of our acquisitions to date is reflected in our PDP PV-10 of $2.1 billion.” < So, as of 9-30-2022 the PV10 Net Asset Value of just their proved developed reserves ("PDP") based on conservative SEC guidlines, NET OF ALL DEBT is approximately $57 per share.
SBOW closed today at $36.86.
Mr. Woolverton commented further, “Looking ahead, both our 2023 production and EBITDA are set to increase over 50% year-over-year. We have visibility and have taken significant steps towards reaching a key scale target during 2024 of over 0.5 billion cubic feet equivalent per day of production. Our capital spend range provides SilverBow with the flexibility to adjust our drilling activity in line with commodity prices. Adding a third rig focused on liquids in the second half of 2023 supports our objective of having a 50/50 mix of oil and gas revenue while driving double digit production growth into 2025. As our leverage declines below 1.0x, we have a range of options to deploy capital, including re-investing in the drillbit, financing further in-basin consolidation and implementing a shareholder returns plan. We are pleased with the execution of our disciplined growth strategy and opportunities ahead for SilverBow as we balance organic growth and acquisitions while prioritizing significant cash flow generation."
SBOW has a lot of upside for us!
Sean Woolverton, SilverBow’s Chief Executive Officer, commented, “Our strong third quarter results highlight the success of our differentiated strategy to deliver growth while maintaining balance sheet discipline. We increased total production more than 40% year-over-year, with oil production up more than 100%, reflecting the impact of our seven strategic acquisitions over the past five quarters. We are proud of all that we accomplished in the quarter, including the announcement of a new dry gas position in the Dorado play of Webb County, which adds stacked pay development opportunities to our near-term drilling schedule. We also acquired incremental working interest and adjacent properties located at our liquids-weighted Karnes trough area. The enhanced economics and development potential of this area compete for drilling capital within our portfolio and warrant a dedicated drilling rig, which we currently plan to activate during the middle of 2023. The culmination of our acquisitions to date is reflected in our PDP PV-10 of $2.1 billion.” < So, as of 9-30-2022 the PV10 Net Asset Value of just their proved developed reserves ("PDP") based on conservative SEC guidlines, NET OF ALL DEBT is approximately $57 per share.
SBOW closed today at $36.86.
Mr. Woolverton commented further, “Looking ahead, both our 2023 production and EBITDA are set to increase over 50% year-over-year. We have visibility and have taken significant steps towards reaching a key scale target during 2024 of over 0.5 billion cubic feet equivalent per day of production. Our capital spend range provides SilverBow with the flexibility to adjust our drilling activity in line with commodity prices. Adding a third rig focused on liquids in the second half of 2023 supports our objective of having a 50/50 mix of oil and gas revenue while driving double digit production growth into 2025. As our leverage declines below 1.0x, we have a range of options to deploy capital, including re-investing in the drillbit, financing further in-basin consolidation and implementing a shareholder returns plan. We are pleased with the execution of our disciplined growth strategy and opportunities ahead for SilverBow as we balance organic growth and acquisitions while prioritizing significant cash flow generation."
SBOW has a lot of upside for us!