SilverBow Resources (SBOW) Update - May 30
Posted: Tue May 30, 2023 9:39 am
Note from Neal Dingmann at Truist Financial
Maintaining the Line as Pricing Pressures Continue;
Lowering PT to $39 From $44
We anticipate little change to SilverBow’s two rig plan with
focus to remain on oily assets for the coming months. However,
continued material natural gas pricing pressure and moderate
oil pricing pressure could cause more deliberate operations to
ensure capital spend is conserved. We have not changed our rig
activity forecasts and minimally changed 2023 estimates though
we have taken a more conservative 2024 approach lowering both
our production and capex estimates for next year resulting in
lower EBITDA estimates but a slightly higher FCF forecast.
Maintaining the Line as Pricing Pressures Continue;
Lowering PT to $39 From $44
We anticipate little change to SilverBow’s two rig plan with
focus to remain on oily assets for the coming months. However,
continued material natural gas pricing pressure and moderate
oil pricing pressure could cause more deliberate operations to
ensure capital spend is conserved. We have not changed our rig
activity forecasts and minimally changed 2023 estimates though
we have taken a more conservative 2024 approach lowering both
our production and capex estimates for next year resulting in
lower EBITDA estimates but a slightly higher FCF forecast.
