SLBO vs Kimmeridge et al

[marc.wolin@yahoo.com]

SLBO vs Kimmeridge

How difficult will it be to get rid of the Kimmeridge interests? What will SLBO have to do to get them out of the way? How long can Kimmeridge et al delay SLBO moving forward into a deal they want?

Marc Wolin

[dan_s]

Kimmeridge's offer is not a bad thing. It is a chance for the company to get bigger, including a $500 million infusion of cash. Cash that can be used to accelerate production growth. Kimmeridge does not control SilverBow's BOD.

[ChuckGeb]

It has come off to me as a hostile solicitation. It on its face does not appear to be synergetic. My view is SBOW needs to execute a cohesive business plan with their newly acquired assets before doing anything more in the M & A arena. In my view they seem to have a pretty good handle on things and have been very nimble. The Kimmeridge solicitation appears to be a significant distraction that I view very skeptically and will not be voting in favor of it.

[dan_s]

Kimmeridge does not own enough stock to force SilverBow's BOD to do anything. Let this play out.

When I was at Hess we got several offers for our core areas. This stuff happens all the time in this business. The only unsolicited offer we accepted was the sale of our upstream division in Canada for $300 million, just because John Hess hated going there.

As you can see from my forecast model, SilverBow is a VERY PROFITABLE company with WTI at $80/bbl. The BOD does not have to take any deal that is not good for existing shareholders.

BTW I think BOD's need "distractions", so they stay out of the day-to-day business. When I was the USE&P Controller at Hess, the BOD never helped my team get the books closed each month.